The decision to adopt Make-to-Stock (MTS) or Make-to-Order (MTO) strategies for a stock-keeping unit (SKU) hinges on various factors that influence production and inventory management. Items with stable and predictable demand patterns are well-suited for MTS, as production can be planned in advance to meet forecasted demand. MTS reduces lead times and production costs by producing items in bulk and stocking inventory to fulfill anticipated orders promptly. On the other hand, highly customized or low-demand items are better managed through MTO strategies, as production is initiated only after receiving customer orders. MTO minimizes inventory holding costs and reduces the risk of obsolete inventory by producing items based on specific customer requirements. Other factors, such as production lead times, production flexibility, customer preferences, and supply chain complexity, also play significant roles in determining the most suitable strategy for each SKU.