1 / 9

ISEN 315 Spring 2011 Dr. Gary Gaukler

ISEN 315 Spring 2011 Dr. Gary Gaukler. Service Level of the Newsvendor. What is service level? A naïve proxy: probability that demand will be less than what we stock = =. Service Level of the Newsvendor. What is wrong with this proxy definition of service level?.

machiko-rin
Download Presentation

ISEN 315 Spring 2011 Dr. Gary Gaukler

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. ISEN 315Spring 2011Dr. Gary Gaukler

  2. Service Level of the Newsvendor What is service level? A naïve proxy: probability that demand will be less than what we stock = =

  3. Service Level of the Newsvendor What is wrong with this proxy definition of service level?

  4. Service Level of the Newsvendor Instead, use expected fill rate as service level measure:

  5. Demand Uncertainty How do we come up with our random variable of demand? Recall naïve method:

  6. Demand Uncertainty

  7. Demand Uncertainty and Forecasting Using the standard deviation of forecast error:

  8. Example

  9. Example

More Related