Customer Information Driven After Sales Service ... - RePub

Customer Heterogeneity and Demand / Capacity Ratio
4.5. Numerical Experiments
We perform the numerical experiments at various D/C ratios. Table 4.7 depicts the
results of the simulation experiments. First we discuss the average profits at various
D/C ratios. Similar to the small scenario, we observe negligible gains for over-stocking
situations. For under-stocking situations, the improvements over the SRH are quite
significant. The improvements depict that the RMH performs increasingly better than
the SRH with higher under-stocking of the stock network. The results also depict an
insignificant difference between the RMH and the RMH+. This confirms our earlier
argument that the local optimum in the vicinity of the customer is highly likely to be
the global optimum.
Table 4.7: Average Profits and Globalized Service Levels at various D/C ratios
Demand / Average Profits Gains Loss Globalized Service Levels
Capacity Ratio SRH RMH RMH + from SRH from RMH+ SRH RMH RMH+
0.6 6,367.9 6,374.1 6,373.5 0.10% -0.01% 100.00% 100.00% 100.00%
0.8 8,355.5 8,389.3 8,392.3 0.40% 0.04% 99.56% 99.58% 99.44%
1.0 9,460.4 9,683.9 9,694.7 2.36% 0.11% 94.68% 94.41% 93.53%
1.2 9,439.2 10,124.2 10,118.4 7.25% -0.06% 88.52% 86.56% 85.94%
1.4 8,591.0 10,742.1 10,764.0 25.04% 0.20% 72.00% 71.98% 71.98%
It is impractical to report the customer service level of each individual customer for
the large scale scenario. Therefore, we restrict ourselves to present the globalized service
levels for the large scale scenario. The results of the globalized service levels follow a
similar pattern to that of the small scenario. For over-stocking situations, globalized
service is close to 100%. Since we have enough stock in the FSL network, it would be
pointless to serve a customer from the supplier (via emergency shipments) and save the
FSL stock. The behavior of the SRH, RMH and RMH+ is quite similar to the small
scenario for over-stocking situations. For the D/C ratios of 1.0, 1.2 and 1.4, we observe
that the globalized service levels of the RMH and RMH+ are slightly lower than the
SRH. The RM approaches result in lower globalized service levels, since the attempt is
to save the FSL network stock in anticipation of higher value customer demand. We
highlight this fact by depicting the fulfillment behavior of one specific run from the large
scale scenario simulation. In Table 4.8, we present the regular transportation costs from
various FSLs to the customers that arrived in this specific simulation run. We also
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