Replenish on order (MTO)

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Introduction

Replenish on Order, also known as Make to Order (MTO), is a replenishment strategy in Odoo that generates a purchase or manufacturing order only when a product is needed either in response to a sales order (SO) or as a component in a manufacturing order (MO). This method ensures that products are not kept in stock unnecessarily, optimizing inventory costs and responsiveness to demand.

What is MTO?

 

In contrast to traditional stock-based fulfillment, MTO creates a replenishment order every time a demand is registered, regardless of whether inventory is available. This means:

  • If a product is purchased, Odoo creates a Request for Quotation (RFQ).
  • If a product is manufactured, Odoo generates a Manufacturing Order (MO).

 

Enable MTO Functionality

 

Before using the MTO route, the Multi-Step Routes feature must be enabled:

  1. Go to Inventory app → Configuration → Settings.
  2. Under the Warehouse section, check the box for Multi-Step Routes.
  3. Click Save.

 

Unarchive the MTO Route

 

By default, the Replenish on Order (MTO) route is archived in Odoo because it is only used in specific workflows.

To unarchive the MTO route:

  1. Go to Inventory app → Configuration → Routes.
  2. Click the down arrow in the search bar and enable the Archived
  3. Tick the checkbox next to Replenish on Order (MTO).
  4. Click Actions → Unarchive.
  5. Remove the Archived filter to display all active routes.

Configure a Product for MTO

 

To set up a product to use MTO:

  1. Navigate to Inventory app → Products → Products.
  2. Select an existing product or click New.
  3. In the Inventory tab, under Routes, enable:
    • Replenish on Order (MTO)
    • Buy or Manufacture

Important: MTO must be combined with another route (Buy or Manufacture), so Odoo knows how to replenish the product.

 

For Purchased Products

  • Check Can be Purchased under the product name.
  • Go to the Purchase tab and add a Vendor and Price.

Note: Without a vendor, Odoo cannot generate a purchase order.

 

For Manufactured Products

  • Click the Bill of Materials smart button.
  • Create a Bill of Materials (BoM) for the product.

Using MTO to Replenish

 

Once configured, Odoo automatically creates a replenishment order every time the product is required in a Sales Order or Manufacturing Order.

 

Reminder: Odoo triggers MTO replenishment even when there is sufficient stock available. It ignores current stock levels by design.

 

Example Workflow (Buy Route)

  1. Go to Sales app → Create a new quotation.
  2. Add a Customer and a product configured with MTO + Buy.
  3. Click Confirm to turn the quotation into a Sales Order.
  4. A Purchase smart button appears—click it to view the RFQ.
  5. Click Confirm Order to convert the RFQ into a Purchase Order (PO).
  6. Click Receive Products, then Validate the incoming shipment.
  7. Return to the Sales Order and click Delivery.
  8. Validate the delivery once the products are shipped.

This process links the customer’s order to a specific purchase transaction, ensuring tight control over procurement and delivery timing.

 

Benefits of MTO

  • Minimized Stock Holding: Products are only acquired when needed.
  • Customized Fulfillment: Especially useful for made-to-order or custom products.
  • Streamlined Procurement: Automatic generation of RFQs or MOs reduces manual work.

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