Which MRP type allows for the immediate production of material upon receiving a sales order?

The Make-to-Order (MTO) MRP type is designed for situations where production is initiated only after a customer sales order is received. This approach is particularly beneficial for customized products, as it allows companies to tailor their production process to meet specific customer requirements, ensuring that resources and materials are only utilized when there is confirmed demand. The focus on individual sales orders helps in minimizing excess inventory and aligns production closely with actual market demand.

In contrast, Reorder Point Planning focuses on maintaining inventory levels by triggering production or procurement based on predefined stock thresholds, which can result in items being produced without specific sales orders. Make-to-Stock involves producing goods in advance based on forecasts, which can lead to excess stock if actual demand does not meet expectations or changes. Planning with Consumption typically refers to managing inventory based on the consumption of forecasts and past demand, rather than grounding production directly in confirmed sales orders.

The Make-to-Order strategy effectively aligns production with actual customer demand, making it the best fit for scenarios that require immediate responses to sales orders.