Most SMBs don’t use just one model.
They combine:

Make-to-Stock (MTS)

Produce common items in advance.

Make-to-Order (MTO)

Produce customized items only when ordered.

Assemble-to-Order (ATO)

Keep components in stock but assemble based on final configuration.

Real example

A furniture shop:

• Keeps standard chairs (MTS)
• Builds customized office desks to order (MTO)
• Assembles modular shelving kits from stocked components (ATO)

Hybrid models reduce risk and increase flexibility — but only work well when inventory, BOMs, and production orders stay perfectly synchronized. Cloud-based systems make this manageable.