Cycle Service Level

Examples

1. 01A cycle service level of 95 % means the planner accepts a stockout in about 1 of every 20 replenishment cycles.
2. 02The material planner sets a cycle service level of 98 % for A items and 90 % for C items, and safety stock follows from it.
3. 03Raising the cycle service level from 95 % to 99 % doubles safety stock for some items, so it is applied only where stockouts are costly.