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Make in Batch, Make-to-Order, Buy, or Outsource?

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 scheduling production for “Not available” items directly from a sales order (SO), you can choose from four options in Katana:

Screenshot showing the quick-add: Make to order, Make in batch, Buy, and Outsource options
  • Make in Batch

  • Make-to-Order

  • Buy

  • Outsource

Each option creates a different type of order and impacts how stock and priorities are managed.


Make in Batch

Use this option when you want to produce items in a custom batch size, not just for one specific SO.

  • By default, Katana suggests a quantity based on your Calculated stock (stock on hand, open manufacturing orders, and SO demand).

  • You can adjust the quantity to match your preferred batch size.

  • The created manufacturing order (MO) is essentially a Make-to-Stock order — it is not permanently linked to any SO.

  • Products from this MO may be reallocated to different SOs if priorities change.

  • Drag-and-drop changes in SO priorities do not affect the MO priority in the Schedule tab.


Make-to-Order

Use this option when you want to produce items only for one specific SO.

  • The MO quantity will exactly match the SO requirement.

  • The MO is permanently linked to that SO.

  • The link between MO and SO cannot be changed.

  • Priority is automatically synced — changing the SO priority in the Sell screen updates the MO priority in the Schedule tab (and vice versa).


Buy

Choose this option if you prefer to purchase the item from a supplier instead of producing it.

  • Creates a purchase order (PO) for the missing item.

  • The item must have “Buy” enabled on the item card.

    Screenshot showing the Buy option selected on a product card

Outsource

Use this option when you want to outsource production (partially or fully) to a third-party manufacturer.

  • Creates an outsourced purchase order (OPO) to manage ingredient availability and stock movements.

  • Common for businesses that supply raw materials to contract manufacturers.

  • The item must also have “Buy” enabled on the item card.


How to choose the right option

  • Make in Batch → Best for replenishing stock in larger, flexible quantities.

  • Make-to-Order → Best for fulfilling a single customer order with exact quantities.

  • Buy → Best when sourcing directly from suppliers is cheaper or faster.

  • Outsource → Best when using contract manufacturers to produce items.


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