What is Pick to Order (PTO) ?
It is a configure-to-order environment where the options and included items in a PTO model (finished good) appear on pick slips after you receive the sales order from customer. Pickers gather the options (based on selection rules), the predefined shippable products parts/components or service from their predefined locations using pick slip and then ship the order. It is assumed that options and components quantity are readily available. It is an alternative to manufacturing the parent item on a work order and then shipping it. There is no additional value added after getting the customer order.
For Example: Computer System (CPU, Monitor and Printer) A pick to order model can have PTO option class, PTO items, ATO model, ATO Option class and ATO option items. There can not be any PTO model, PTO option class or PTO item under an ATO model. You want to manufacture a promotional laptop computer, you need laptop computer, dikettes, accessories and battery pack. Here, you define PL computer as PTO model, laptop computer as ATO model, battery pack, diskette and accessories as purchase items.
Standard, model and option class Bills of material, can include bills for pick-to-order bills, Pick-to-order is also an item attribute that you can apply to standard, model, and option class items. Oracle Master Scheduling/MRP and Supply Chain Planning does not support planning for pick-to-order models and option classes. Pick to Order (PTO) items have the Pick Component attribute set to Yes. Pick-to-order bills cannot have fractional component quantities if Oracle Order Management is installed. You cannot create routings for planning or pick-to-order items.