A Bayesian approach to service level performance monitoring in supplier, provider relationships

F P Wheeler ()
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F P Wheeler: University of Bradford

Journal of the Operational Research Society, 2001, vol. 52, issue 4, 383-390

Abstract: Abstract Techniques are presented for monitoring the performance of a delivery service. The techniques were developed from the practical need to support two parties: a virtual retailer that out-sources the home delivery of its goods and the logistics business that provides its courier service. The techniques are relevant to contractual negotiations and performance monitoring. A graphical tool for hypothesis testing is presented as an aid to contract negotiation and a dynamic model is developed to track performance over time for operational management. The approach is based upon the beta-binomial distribution, within a Bayesian decision context.

Keywords: Bayesian statistics; decision support systems; dynamic models; time series analysis; logistics (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1057/palgrave.jors.2601096

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