Olhager (2003) identified two major factors that affect the strategic positioning of the order decoupling point, the production to delivery lead time ratio and the relative demand volatility (standard deviation of demand relative to the average demand). Clearly, if the production lead time is larger than the delivery time of a customer order, then MTO production is not possible because of poor customer service. On the other hand, MTS production, in case of many finished goods, is not efficient because of high inventory cost. The high inventories are necessary to achieve the promised level of customer service, for MTS production mainly expressed by the fill rate.