Supply Chain 5

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1、Chapter4Logistics/SupplyChainCustomerService(2)SupplyChainManagement--SuqianZha22021/7/21DeterminingoptimumservicelevelsOncetherevenueandlogisticscostforeachservicelevelareknow,wecanthendeterminetheservicelevelthatwillmaximizethefirm’sprofitcontribution.Theoptimalprofitpointisfoundmathematically.Sup

2、plyChainManagement--SuqianZha32021/7/21TheoryProfit=Revenue-costMaximumprofitsarerealizedatthepointwherethechangeinrevenueequalsthechangeincost.Thatis:Marginalrevenue=Marginalcost△P=△CSupplyChainManagement--SuqianZha42021/7/21SupplyChainManagement--SuqianZha52021/7/21Ifhere△P=32.95,whatshouldbetheop

3、timalstocklevel?TheoptimalSLis92to93percent.Wedonotneedtosethigherlevels,astheprofitwegainwillnotcoverthecostwespend.SupplyChainManagement--SuqianZha62021/7/21ServiceVariabilityVariabilityincustomerserviceperformanceisusuallymoreimportantthanaverageperformance.Highdegreesofserviceuncertainycausethec

4、ustomertoincurhighcoststhroughelevatedinventory,expeditedtransportation,andadditionaladministrativecostsHowmuchvariabilitytoallowisaneconomicissue.SupplyChainManagement--SuqianZha72021/7/21LossFunctionTaguchiproposedthatinconsistentqualityinproductandservicesresultsinexpense,waste,lossofgoodwill,and

5、lostopportunitywheneverthequalitytargetvauleisnotmetexact.Eg:meettargetdeliverydates,in-stockfrequency,orderfillrateSupplyChainManagement--SuqianZha82021/7/21AccordingtoTaguchi,lossesoccuratanincreasingrateasservice/qualitydeviatesfromitstargetvalue.Thislossincreasesatanincreaserateaccordingtothefol

6、lowingformula:L=k(y-m)(y-m)SupplyChainManagement--SuqianZha92021/7/21L=k(y-m)(y-m)L=lossperunit(costpenalty)y=valueofthequalityvariablem=targetvalueofthequalityvariableyk=aconstantthatdependsonthefinancialimportanceofthequalityvariablesSupplyChainManagement--SuqianZha102021/7/21ExampleSupposethatapa

7、ckagecourierservicepromisestodelivertocustomersby10:00AMinthemorningafterpicking.Deliverylaterthantwohoursafterthepromiseddeliverytimeisunacceptable.Thecompanyispenalized10dollarsintheformofcustomerre