Title: Simulation model of professional service personnel inventory

Authors: Scott R. Swenseth; David L. Olson

Addresses: College of Business Administration, University of Nebraska-Lincoln, Lincoln, NE 68588-0491, USA ' College of Business Administration, University of Nebraska-Lincoln, Lincoln, NE 68588-0491, USA

Abstract: Supply chains are found in service organisations as well as in manufacturing. A common type of supply chain is personnel. Firms such as accounting, consulting, or legal firms need to develop a chain of trained professionals who hone their skills through training and experience throughout their careers. While such firms have to consider these long-range goals, they also need to manage operations in the short-term to generate adequate profit, both through increasing demand for their services as well as controlling costs of delivering them. This paper applies a simple Monte Carlo simulation model to a legal firm decision of managing short-term capacity. Factors to include covering demand, minimising cost, and maintaining quality are considered. The simulation model deals with the uncertainties involved in demand, to include consideration of risk level. A hypothetical law firm (based loosely on an existing firm) is used as a basis for this analysis. Results emphasise that the tools developed for very different purposes work appropriately in this context.

Keywords: service operations; SCM; supply chain management; personnel supply chains; Monte Carlo simulation; legal personnel management; service organisations; law firms; legal industry; skills training; profit generation; increasing demand; minimising costs; service delivery; short-term capacity; covering demand; maintaining quality; demand uncertainty; risk; professional service personnel.

DOI: 10.1504/IJSOM.2014.065669

International Journal of Services and Operations Management, 2014 Vol.19 No.4, pp.451 - 467

Published online: 15 Nov 2014 *

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