Strike Rate Matrices for Integrating Marketing and Production During the Tendering Process in Make‐to‐Order Subcontractors

Abstract

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.