Pick to Order (PTO)

A stocking strategy implemented in Oracle platforms which does not involve manufacturing. Can indicate either a configuration model or a kit. In both cases, PTO implies that multiple items are picked based on one line item on a sales order. The options for picked items are based on a selection from a variety of finished products from a relatively small number of sub-assemblies and components. Because there is no manufacturing involved, PTO models or PTO kits can be shipped as soon as they are ordered, depending on the availability of the required items. When the pick list is generated for these items, the individual items that were selected (in the case of a PTO model) or that were part of the standard PTO kit are printed in the pick list, which can then be picked and shipped.

A PTO kit consists of:

• Standard bill of material with mandatory included items

• Pick slip used to kit included items

A PTO configuration consists of:

• Pick-to-Order models with optional Assemble-to-Order items

• Pick-to-Order model containing Assemble-to-Order model