Discuss the following:
Lissette Jones, the materials manager for an upscale retailer, wants to measure her customer service level. She has collected the following representative data.
|
rder Number
|
Number of List Items
|
Dollar Value of Order
|
|
1
|
4
|
1000
|
|
2
|
8
|
1440
|
|
3
|
2
|
1600
|
|
4
|
6
|
920
|
|
5
|
10
|
1800
|
|
6
|
8
|
1200
|
|
7
|
8
|
2700
|
|
8
|
4
|
1560
|
|
9
|
5
|
1780
|
|
10
|
5
|
1000
|
|
Total
|
60
|
$15,000
|
Assuming that orders 1-6 and 8-10 shipped on schedule:
(a) Calculate the customer service level using the percentage of orders that shipped on schedule.
(b) Calculate the customer service level using the percentage of line orders that shipped on schedule.
(c) Calculate the customer service level using the percentage of dollar volume that shipped on schedule.
d) Which of these measures would you recommend to Lissette?