Operations Management: An Integrated Approach, 5th Edition

CASE: Kayaks!Incorporated

Kayaks!Incorporated manufactures a line of sea kayaks and accessories in a make-to-stock environment. These products are sold to boat dealers and major department stores throughout North America, which then sell these products to the final customer. Customers expect immediate receipt of the goods, so it is critical to have sufficient inventory held by the dealers and department stores. Aeesha Grant, the materials manager at Kayaks! wants to make sure that the customer service level is being correctly calculated before she considers any changes to manufacturing. She has collected the following information for you to analyze and prepare a report on the customer service level being provided by Kayaks!Incorporated to the boat dealers and department stores.

Case Questions

1. Kayaks!Incorporated has always measured customer service as the number of complete orders that ship on schedule. Using this measure, calculate the customer service level provided by Kayaks!Incorporated.

2. Does this method of calculating the customer service level make sense for Kayaks!Incorporated?

3. What other methods might be useful in measuring Kayaks! customer service level? How would these affect your analysis of customer service?

4. What is your report to Aeesha Grant with regard to the customer service being provided by Kayaks!Incorporated?