The data set to be usedin the investigation was limitedto monthly costs andrevenues that were already available in the company’s database for the 18-month period between August 1995 andJanuary 1997, overlapping the periodwhen the POS system was deployed. The management maintainedthat any service quality enhancement due to the speedandaccuracy improvement resulting
from the deployment of the POS system wouldred uce costs andincrease revenues andthe quality dimension of performance was investigated explicitly in this study.
Since there were only monthly data available, we decided to gauge performance on a monthly basis. We viewedeach drugstore’s monthly operations as an operating entity calledprod uction unit (PU) whose purpose was to provide service within a given month. Here, the term production refers to the process of converting resources into outputs of service. A drugstore performs many activities in relation to its operations. The expected bene1ts from the deployment of the POS system included faster andmore reliable service at the checkout counters andbetter inventory management—timely andcorrect replenishment orders thanks to more reliable sales andinventory information.