Research On Order Accepted Decision Method Of Manufacturing Enterprises

Facing the pressures of competition in market and the limited production resource,manufacturing companies which use MTO mode need to consider the customer product from internal and external environment,coordinate the contradiction between production department and the sale department to ensure that customers receive the production at the due-date time on the premised of guaranteeing the quality of personalized products.However,the rapidly changes of the market demand,the varied customer order and the complex resources in the companies can lead to unreasonable problems when companies arrange production,which bring unnecessary losses to companies.Order accepted decision has a great impact on performance of companies.At different times and different stages,the number of customer orders is unpredictable under MTO mode.When the production capacity of a company is less than the capacity needed,company accepted excessive orders may lead to overload production system and the rising rate of delayed orders,which,on the one hand,bring higher penalties,and one the other hand decrease the customer satisfaction and customer orders.Although companies can expand capacity,such as overtime and outsourcing,to solve the problem,which may bring higher fixed-variable costs,and outsourcing may make enterprises have some risk.When the production capacity is greater than the capacity which customers needed,accepting all orders may also lead capacity surplus,resulting rate of equipment utilization lower.Enterprises face a difficult problem that how to get more customer orders.Enterprises must seek reasonable methods to effectively use resources in order to increase performance.Firstly,when the production capacity of a company is less than the capacity which needed,in order to coordinate the contradiction between production and sale department,enterprises selectively accept orders and arrange the processing time.Enterprises should make it possible to deliver the production at due-date time.Customers may accept delayed orders in a limit period which lead to some penalties.Based on these problems,a 0-1integer programming model is modeled,which combined the production capacity with the due-date to make sure total revenue is maximizedSecondly,when the production capacity is greater than the capacity which customers needed,for the sake of development,enterprise must find reasonable and effective methods to acquire as many orders as possible.Enterprises compete with other competitors,the bid price which directly affect enterprise obtain orders is the most critical factor in thecondition of little significant difference with other competitors.According to the detailed order information,experienced staffs make a reasonable assessment to confirm the bid price.If other conditions is alike,the lower bid enterprise made,the greater the possibility they can obtain.Finally,an order acceptance decision based on competitive price is proposed to ensure that enterprises can obtain as many orders as possible and gain the largest profits.