Make-to-stock: producing for the warehouse

Make-to-stock: producing for the warehouse

Make-to-stock (MTS) production means you build finished goods in advance and store them in your warehouse to meet expected customer demand. Unlike make-to-order (MTO), where you produce only when you have a customer order, MTS lets you maintain stock and fulfill orders faster.

Before you start

• You must have defined a bill of materials (BOM) for the product you want to build. The BOM lists all components and their quantities.
• You need raw materials in stock (components listed in the BOM) at the time you create the build.
• You should have permission to create builds. Ask your administrator if you cannot access the assembly or manufacturing area.
• Have an estimate of how many units you plan to build.

Steps

1. Go to the assembly board or the Production section. Open in Usystems

2. Click "New Build" or the button to create a production run. The form opens with fields for the product, quantity, and other details.

3. Select the finished product you want to build. Usystems automatically loads the BOM and shows you the components and quantities needed.

4. Enter the quantity you want to produce. For example, if you plan to build 50 units, enter 50.

5. Review the components and their availability. The system shows how many of each raw material will be consumed. Make sure you have enough stock; if stock is low, the system will warn you.

6. Choose the warehouse where finished goods will be stored (if your setup has multiple warehouses).

7. Add any notes (optional) to track the reason for this production run or special instructions.

8. Click "Create Build" or "Start Production" to confirm. The build is created and moved to your assembly board as a pending or in-progress item.

9. Mark the build as complete when manufacturing finishes. On the assembly board, move the build to "Done" or click the completion button. Usystems automatically deducts raw materials from inventory and adds finished goods to stock.

Accounting impact

When you complete a build:

• Raw materials are removed from your warehouse inventory (credited to the inventory account).
• Cost of goods manufactured is calculated and posted to your finished goods inventory account.
• The finished product is added to stock at its production cost (sum of all component costs).

Tips & common mistakes

• Check stock before building. If raw material runs out during production, the build may fail or leave you with incomplete goods.
• Plan build quantities realistically. Building too much ties up cash; building too little wastes production setup time.
• Use the assembly board to track progress. Drag builds between columns (Pending → In Progress → Done) to keep your team informed.
• Review production costing reports after builds complete to understand your cost per unit and adjust pricing if needed.

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