A made-to-order (MTO) order is an order for a item that is created or configured for this order.
For example, a computer vendor may sell custom computer configurations, where the buyer can specify a choice of hard disk size, processor type, DVD player, and other hardware choices. The computer vendor assembles the computer from existing components, and ships the configuration that the buyer has requested.
The quantity for an item that is on a made-to-order order may be greater than one. For example, a shirt manufacturer may take an order for two thousand blue shirts embroidered with the corporate logo of the buyer. This is also an order that is made-to-order.
When an order is made-to-order, the components of the item being purchased are not defined in the catalog. This reflects that the item is being created especially for this order. It may have a Code of "Dynamic Physical Kit" (DPK).
When the order is created, it is assigned a Kit Code of "Dynamic Physical Kit" (DPK), and the components that make up the item are specified in the order lines. The Segment is set to the OrderLine Key, and the Segment Type is set to "MTO", indicating that this is Made To Order.
When scheduling the order, sourcing rules for individual lines are used, and scheduling attempts to locate a single ship node. If a single node can not be specified, the item is backordered.
The creation of a made-to-order order also generates a work order document. A work order document is used to manage a series of actions to fulfill the custom order.