A company's cost of manufacturing and procurement tend to increase when changing from MTP to MTO strategy due to the individuality of MTO. MTP, also referred to as made to stock means that MTP is completely dependent on consumer demand and what the masses want. This means that multiple of the same product can be stored in places like warehouses for mass consumption (Bowersox, Closs, Cooper and Bowersox, p. 107). This differs from MTO because it is based on very specific needs for a particular customer. Like the example used in our text, most people are not looking to buy an entire cruiseship so something like this would not be made in bulk. The parts to build this ship also wouldn't be in stock because with MTO, there is no product made or parts stored until requested (Bowersox, Closs, Cooper and Bowersox, p. 106). Due to MTO being for specific products, it is important to make sure each individual raw material is of the best quality so an item can be made properly (which is procurement). Due to the items not being in stock they cannot be bought in bulk, which causes costs to increase. Inventory costs tend to decrease