EBOOK: Matching Supply With Demand: An Introduction To Operations Management¶
Cachon, & Terwiesch. (2012). EBOOK: Matching Supply With Demand: An Introduction To Operations Management. McGraw Hill.
Cited by¶
1 citation across 1 artifact.
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Domain-specific¶
- Service Level
- The mechanism by which a service level disciplines system design is through buffer sizing: committing to the 95 percentile rather than the mean requires the system to be sized against the 95-percentile demand scenario, not the average, which couples the construct directly to inventory safety stock (sized via the normal-loss or equivalent function at the target fill rate), call-center staffing (sized via the Erlang-C formula at the target telephone service factor), IT redundancy (sized to the target availability tier), and emergency-capacity reserves
This sourceCarries the buffer-sizing coupling on two of its substrates - inventory sized by the newsvendor and order-up-to models at a target fill rate, and call-centre staffing sized to a target service level - in a single text; the availability and emergency-reserve substrates are not treated here.
- The mechanism by which a service level disciplines system design is through buffer sizing: committing to the 95 percentile rather than the mean requires the system to be sized against the 95-percentile demand scenario, not the average, which couples the construct directly to inventory safety stock (sized via the normal-loss or equivalent function at the target fill rate), call-center staffing (sized via the Erlang-C formula at the target telephone service factor), IT redundancy (sized to the target availability tier), and emergency-capacity reserves
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