Introducing B2B Service Level Measures via a Poker-Card Activity

Introducing B2B Service Level Measures via a Poker-Card Activity

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Article ID: iaor2016132
Volume: 14
Issue: 1
Start Page Number: 37
End Page Number: 50
Publication Date: Jan 2016
Journal: Decision Sciences Journal of Innovative Education
Authors: ,
Keywords: supply & supply chains, retailing, simulation: applications
Abstract:

To determine the appropriate level of product availability, most operations management textbooks introduce and define service level measures in a Business‐to‐Customer context. In other words, a retailer that wants to measure product availability in their store calculates the fill rate (FR) or cycle service level over an infinite review horizon. However, in a Business‐to‐Business (B2B) context, a retailer almost always calculates the FR or compliance level over a finite review horizon. The goal of this article is to highlight calculations of service level measures in a B2B context. Pedagogically, it presents in‐class activities that use standard playing cards and/or a spreadsheet simulation that allow students to experientially learn about service level measures in a B2B context.

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