What is effective lost sales percentage in SAP MA-SMOPS - SmartOps?

SAP Term: effective lost sales percentage

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: The acceptable lost sales percentage to be applied at the minimum service level at the associated customer-facing stocking point.

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• Key Concepts: 
  Effective Lost Sales Percentage (ELSP) is a metric used in SAP’s SmartOps module of the Manufacturing and Supply Chain Optimization Suite (MA-SMOPS). ELSP measures the percentage of lost sales due to stockouts, or when a product is not available for purchase. It is calculated by dividing the total number of lost sales by the total number of potential sales. 
  
  How to use it: 
  ELSP can be used to measure the effectiveness of inventory management and supply chain operations. It can help identify areas where stockouts are occurring and provide insight into how to improve inventory management and supply chain operations. Additionally, ELSP can be used to compare performance across different locations or products. 
  
  Tips & Tricks: 
  When using ELSP, it is important to consider other factors that may affect stockouts, such as demand forecasting accuracy, lead times, and supplier reliability. Additionally, it is important to consider the cost of lost sales when evaluating ELSP. 
  
  Related Information: 
  ELSP is related to other metrics such as inventory turnover rate and service level. Additionally, ELSP can be used in conjunction with other metrics such as on-time delivery rate and fill rate to provide a more comprehensive view of inventory management and supply chain operations.