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Application Of Customer Lifetime Value Model In Make-To-Order Manufacturing, Oya I. Tukel, Ashutosh Dixit
Application Of Customer Lifetime Value Model In Make-To-Order Manufacturing, Oya I. Tukel, Ashutosh Dixit
Business Faculty Publications
PURPOSE: The applicability of the customer life time value (CLV) concept goes beyond consumer markets. Specifically, the purpose of this paper is to show how a make-to-order manufacturing company in a supply chain can set customer-focus manufacturing strategies using CLV. DESIGN/METHODOLOGY/APPROACH: Data from an integrated steel plant is used to calculate the life time value of customers based on the past value, the potential value, and their loyalty. The past value of a customer is based on the historical data and the future value of a customer is then forecasted. The loyalty index of a customer is determined by survey …