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Lissette Jones, the materials manager for an upscale retailer, wants to measure her customer service level. She has collected the following representative data.
Order Number
Number of List Items
Dollar Value of Order
1
4
1000
2
8
1440
3
1600
6
920
5
10
1800
1200
7
2700
1560
9
1780
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?
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