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Make in Batch or Make-to-Order?
Make in Batch or Make-to-Order?

A guide to help understand the difference between Make in batch and Make to order

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over a week ago

When you schedule production for "Not available" items directly from a Sales order (SO), you can either Make in batch or Make-to-order.

Make in batch - allows you to customize the quantity manufactured based on your desired batch size.

Make-to-order - will create a manufacturing order for the exact quantity of product needed for this specific SO.

In both cases, a Manufacturing order (MO) for the required products will be added to the Schedule tab in the Make screen. However, the characteristics of the MOs are different when you are making in batch or making to order.

Let's dig a deeper into the differences between Make in batch and Make-to-order.

Make in batch...

If you are looking to select a quantity of the product to make with the MO you are creating.

You can make a different quantity that is required by the specific SO. By default, the suggested quantity for the Manufacturing Order is the total missing quantity for a product, based on all your existing sales orders, stock on hand, and open manufacturing orders. You can see the missing quantity in the "Missing/Excess" column in the "Stock" screen. You can edit the quantity for the created MO at any time to match your desired batch size for manufacturing.

This MO is essentially a Make-to-Stock order that will not be permanently linked to any Sales orders. This means that when SO priorities are changed, the products made by this MO might be rebooked to other Sales orders. Also, the priorities in the Schedule tab do not change if the priority for any Sales orders is drag-and-dropped.

Make to order...

If you are looking to make products only for the specific SO.

The created MO will be for the exact quantity of the product required by the underlying SO. The quantity or the link between orders cannot be changed.

The MO will be permanently linked to that SO. The priority of the MO is automatically synced with the linked SO: changing the priority of the Sales orders in the Sell screen automatically updates production priorities in the Schedule tab and vice versa.

Unsure of which to choose?

Read more about how MOs affect Product Availability for Sales orders.

Also, here's how a typical Make-to-Order flow and Make-to-Stock flow work in Katana.

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