Order selection optimization in hybrid make-to-order and make-to-stock markets

Ashayeri, J., and Selen, W.J. (2001) Order selection optimization in hybrid make-to-order and make-to-stock markets. Journal of the Operational Research Society, 52 (10). pp. 1098-1106.

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Abstract

The order selection process for firms operating in markets characterized by standard products as well as strong product customization, is directly tied to the customer and to the associated production costs. This order selection process must be inter-functional with marketing and manufacturing in deciding which orders to accept, specially since the selection criteria used by marketing and manufacturing tend to differ. This paper develops a methodologymathematical programming model for improving this coordination through an optimal selection of sales orders, such that the total financial contribution of selected orders is maximized. Based on an actual case study in the pigment manufacturing industry, the methodology provides for a user interface that addresses both the manufacturing and marketing department. More importantly, such a marketingproduction coordination allows for improved performance in increasingly segmented (customized) markets, while continuing standard product lines as well.

Item ID: 13287
Item Type: Article (Research - C1)
ISSN: 1476-9360
Keywords: lot sizing; marketing; mixed-integer programming; planning; production
Date Deposited: 03 Dec 2010 02:26
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150312 Organisational Planning and Management @ 100%
SEO Codes: 90 COMMERCIAL SERVICES AND TOURISM > 9099 Other Commercial Services and Tourism > 909999 Commercial Services and Tourism not elsewhere classified @ 100%
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