Service level% -- Confusion

[Former Member]

Hi Guys,

I am working on service level %. I am using the MRP forecast type PV. Service level % is maintaibned and everytime the Forecast is executed, the safety stock is automatically updated in the material master.

Could you please explain me the formula/logic involved in this calculation??

for example if the forecast caluclates demand of 46%, and service lvel is mainntained to 55%. What would be the safety stock calculation logic

Sanjay

[Former Member · Accepted solution]

Hi,

Service level means, when the sales order comes, on what percentage you can cover the sales order requirement immediately, this is called service level.

when the service level % increases, your safety stock also will increase to cater the sales order requirement. When the service level % reduces, the safety stock also will reduce.

Regards,

V. Suresh

[Former Member]

not completely answered