The aim of this thesis is to compare Make-to-Order and Make-to-Stock production policies and to find the best policy for analyzed company. The decision to change production policy from Make-to-Order to Make-to-Stock is made in the beginning of the project.

In the first part of the thesis company’s order-delivery process is studied in order to trace bottlenecks in production. Theoretical part consists of literature review and production planning principles. Customer Order Decoupling Points and Economical Production Quantities are determined for each product. Research results show that changing of the production policy was a right decision. Delivery accuracy improved and usage of the capacity became more efficient. By producing products to stock set-up costs can be minimized. Stock levels make it possible to develop production process further and thus shorten production lead time. After improving production lead time to respond short delivery time requirements, Make-to-Order policy should be considered again.