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The Definitive Guide to Modern Supply Chain Management (Collection) by Sara Lewis, Michael Watson, John Bell, Thomas J. Goldsby, Peter Cacioppi, Jay Jayaraman, Chuck Munson, Chad W. Autry, Mark A. Moon

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4. Alternative Service Levels and Sensitivity Analysis

In this chapter we want to expand on the models from Chapter 3, “Locating Facilities Using a Distance-Based Approach,” by adding some sophistication to modeling service levels. We will also dig deeper into the important concept of sensitivity analysis and learn why running many different iterations of your model will ultimately bring the most value to your project. Finally, this chapter will introduce the notion of infeasible models and efficiently finding their root causes.

What Does Service Level Mean?

Picture yourself standing in the kitchen after a long week of work or classes. You are starving and rifling through your delivery menus from a few of your favorite pizza parlors. Pat’s Pizzeria ...

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