A Bayesian approach to service level performance monitoring in supplier,provider relationships |
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Authors: | F P Wheeler |
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Institution: | 1.University of Bradford,Bradford,UK |
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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. |
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