Differentiate between make-to-stock and make-to-order.

Differentiation should include the following descriptions:

• Make-to-stock—A production process that matches production with consumer demand forecasts; the MTS method forecasts demand to determine how much stock should be produced.
• Make-to-order—A production process that is triggered from a sales order (i.e., the production process will start only after receiving the sales order from the customer).