Study On Decision-Making Of Production Capability And Lead Time Under BTO Mode

With the rapid development of economic, the continuous improvement of science and technology. The requirements of consumers become harsher. It is difficult to predict what consumers need as diversified and personalized. More intense competition among enterprises, they had to change production mode to reduce their cost. Within the same market segments, product quality and function tends to be homogeneity, the price differences are getting smaller and smaller. The focus of consumers gradually shift to the lead time, competition among enterprises is a competition based on price and time. It is in this context, BTO production mode attracted much attention, because it can increase production flexibility, reduce the impact of demand uncertainty and market turmoil. Much research has been down in abroad, and the results show there is obviously relationship between logistics capability and firm performance. Now, domestic enterprises adopt a production mode combined with forecast and BTO. Studies on BTO production mode and logistics capability is still in the exploratory stage.Based on the existing research, and combined with the domestic market environment and their characteristics, this paper studied on the decision-making of Logistics capability. First, according to this new market environment, reflects the elements of logistics capability under BTO mode as customer service level and lead time, and describes the interaction of these elements between decision-marking through the funnel model Then, built the Decision Model of BTO mode under prices, time-sensitive needs, the decision objective is to maximizing the profits. Finally, the model was analyzed, and method for solving the model was given, a visual interface was designed to solve this model through MATLAB. And analyzed the influence brought by the parameters. Therefore, this study not only filling logistics capability theory, but also provide some reference to decision-making, to increase operational efficiency and market competitiveness, and promote the development of enterprises.