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Stock-driven production in 2025? Here’s how Microsoft Dynamics 365 Business Central helps you stay ahead
How Microsoft Dynamics 365 Business Central optimizes stock-driven production with smarter forecasting, inventory control, and efficient planning.
In manufacturing, every second counts. Especially when you operate under the Make to Stock (MTS) model, where products are made in advance and kept in inventory instead of being built on order. This approach demands a flawless balance between demand forecasting, inventory management, and production planning.
In this article, we take a closer look at the MTS strategy and how Microsoft Dynamics 365 Business Central can make your stock-driven production smarter and more efficient.
Gor Sayadyan
Digital Advisor
What is Make To Stock?
Make to Stock means producing goods based on a forecast rather than actual customer orders. Finished products are stored in inventory so they can be delivered immediately once ordered. This requires reliable demand planning and a well-tuned inventory strategy.
Advantages:
- Faster delivery to customers
- Lower production costs thanks to economies of scale
- More stable production schedules
Challenges:
- Risk of overproduction and aging inventory
- Heavy reliance on forecast accuracy
- High carrying costs if forecasts are off
How does Business Central support the MTS model?
Microsoft Dynamics 365 Business Central is a comprehensive ERP solution designed for MTS manufacturers. It integrates modules for inventory, planning, and production to streamline operations.
Demand forecasting and material requirements planning (MRP)
Built-in demand forecasting combined with MRP helps align production schedules with expected demand. Business Central automatically calculates what materials are needed, when, and in what quantities.
Real-time inventory management
Inventory levels are continuously monitored. Alerts notify you if stock is running low or piling up, helping prevent obsolescence and optimize warehouse space.
Production routing and capacity planning
Routing details and capacity settings allow you to schedule production more efficiently. This reduces bottlenecks and smooths out workloads across resources.
Key performance indicators and reporting
Dashboards and reports give insights into inventory turnover, forecast accuracy, and on-time delivery. This data supports ongoing improvement efforts.
Real-world example
Imagine a manufacturer of garden structures using the MTS approach. Based on historical sales data, Business Central generates a demand forecast. MRP then creates production orders and purchase suggestions automatically. Inventory is monitored in real-time. When stock falls below minimum levels, new production orders are triggered.
The outcome is minimal stockouts and high customer satisfaction.
Challenges and limitations of Business Central for MTS
Basic forecasting capabilities
The standard demand forecasting in Business Central is straightforward and does not include built-in AI or machine learning enhancements. Advanced forecasting requires integrating external tools.
Using Microsoft Azure Machine Learning, ERP data can be linked through platforms like Power Platform or Azure Synapse to build custom forecasting models. These tailored insights provide more relevant predictions aligned with your specific production environment.
Simple MRP logic
Business Central’s MRP calculates material needs based on demand, inventory, and lead times, which works well for many small and medium-sized businesses. However, it lacks support for complex, multi-level planning scenarios, simulations, or what-if analyses.
This gap can be filled by integrating advanced planning tools such as Netronic or Dime.Scheduler, offering better control over capacity, sequencing, and delivery dates even in dynamic production settings.
No native advanced planning and scheduling (APS)
Business Central does not provide real-time scheduling that accounts for capacity limits, wait times, or production order sequences. For more complex scheduling requirements, third-party APS solutions are necessary.
Specialized manufacturing solutions, like 9A Discrete Manufacturing and 9A Advanced Manufacturing, support companies in creating more efficient, controllable production plans.
Conclusion
If your business relies on stock-driven production and prioritizes speed and availability, Make to Stock remains a powerful strategy. Using Business Central as your ERP backbone makes this approach not only manageable but scalable.
Integrating forecasting, inventory optimization, and production automation creates a powerful competitive edge, enabling your production company to remain agile and responsive to customer demands.
Discover Microsoft Dynamics 365 Business Central
Visit the product page to get an overview of how Business Central supports stock-driven production and more.
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Read the next article: Configure to Order
Learn how CTO helps manufacturers deliver personalized products fast, without the complexity of full custom-builds.
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