Practice Summary: Intel Calculates the Right Service Level for Its Products

Dennis Arnow () and Sean P. Willems ()
Additional contact information
Dennis Arnow: Independent Consultant, San Carlos, California 94070
Sean P. Willems: Haslam College of Business, University of Tennessee, Knoxville, Tennessee 37996

Interfaces, 2017, vol. 47, issue 4, 362-365

Abstract: All too often, companies do not rigorously calculate service levels. Instead, they arbitrarily set service levels by employing a top-down mandate. They employ this arbitrary approach because they have difficulty in quantifying the economics of a specific service level; the primary difficulty these companies encounter is quantifying the cost of not satisfying demand. Intel’s Customer Fulfillment and Logistics Group has developed a data-driven approach to calculate customer service levels. The major breakthrough in this work is a simple three-step process that diverse functions across the supply chain can employ to agree on the costs associated with a given service level.

Keywords: inventory; service; supply chain application (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1287/inte.2017.0893 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:47:y:2017:i:4:p:362-365

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().