Addressing the Performance of Order Acceptance

While there are many mathematical approaches to order acceptance (OA), the performance of OA in practice is overlooked. This paper assesses current OA methods and performance measures that could measure OA. The outcome is a conceptual performance measurement system for OA that measures performance through utilization of resources, output and flexibility in a diagnostic and predictive manner. This paper found a close relationship between OA and S&OP, as they both match supply and demand. The contribution of this paper is that it detaches OA from mathematical models and proposes a method to assess the value creation of OA in practice.