Make to stock意思

"Make to stock" is a production strategy in which products are manufactured and stored in advance for later sale. This strategy is typically used for items that have a stable demand and a long shelf life, allowing companies to take advantage of economies of scale and reduce the time it takes to fulfill customer orders.

In a make-to-stock strategy, production is often scheduled based on forecasts of future demand, and the finished products are stored in a warehouse until they are sold. This approach can be efficient for products that are in high demand and have a consistent sales history, as it allows for quick delivery to customers and can help to smooth out any fluctuations in demand.

However, make-to-stock can also lead to excess inventory if demand turns out to be lower than expected, or if the products become obsolete before they are sold. This can result in increased storage costs and the potential for markdowns or waste if the products need to be disposed of.

Make-to-stock is contrasted with other production strategies such as "make to order," in which products are only manufactured once a customer has placed an order, and "make to assemble," in which components are produced in advance and assembled into finished products as needed.