Prioritization Of Customer Order Selection Factors By Utilizing Conjoint Analysis: A Case Study For A Structural Steel Firm

Abstract

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In today’s business environment, companies should <br> make strategic decisions to gain sustainable competitive advantage. <br> Order selection is a crucial issue among these decisions especially for <br> steel production industry. When the companies allocate a high <br> proportion of their design and production capacities to their ongoing <br> projects, determining which customer order should be chosen among <br> the potential orders without exceeding the remaining capacity is the <br> major critical problem. In this study, it is aimed to identify and <br> prioritize the evaluation factors for the customer order selection <br> problem. Conjoint Analysis is used to examine the importance level <br> of each factor which is determined as the potential profit rate per unit <br> of time, the compatibility of potential order with available capacity, <br> the level of potential future order with higher profit, customer credit <br> of future business opportunity, and the negotiability level of <br> production schedule for the order.