Journal of the Operational Research Society

, Volume 52, Issue 10, pp 1098–1106 | Cite as

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

Case-oriented Paper

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 methodology/mathematical 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 marketing/production coordination allows for improved performance in increasingly segmented (customized) markets, while continuing standard product lines as well.

Keywords

production marketing planning lot sizing mixed-integer programming 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Palgrave Publishers Ltd 2001

Authors and Affiliations

  1. 1.Tilburg UniversityThe Netherlands
  2. 2.Free University BrusselsBrusselsBelgium
  3. 3.James Cook UniversityAustralia

Personalised recommendations