| 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.