Article ID: | iaor1999613 |
Country: | United Kingdom |
Volume: | 4 |
Issue: | 4 |
Start Page Number: | 251 |
End Page Number: | 257 |
Publication Date: | Jul 1997 |
Journal: | International Journal of Production Research |
Authors: | Kingsman Brian G., Mercer Alan |
Keywords: | marketing |
Make-to-order companies manufacture products to the customers' specifications. Sales wishes to quote small mark-ups and short lead-times to maximise the chance of winning orders. Manufacturing wants to have large mark-ups and long lead-times to ensure production profitability and flexibility. The selling and manufacturing functions are integrated at the tendering stage by predicting the probability of winning contracts with various mark-up and lead-time combinations. Tender subdivisions, having different strike rate matrices, are determined empirically from previous outcomes and the whole process is updated continuously.