What is alpha service level in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: alpha service level

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Shortfall-oriented service level in percentage form showing that in x % of the periods within the planning horizon no shortfalls are expected. Extended safety stock planning from Supply Network Planning uses the alpha service level to calculate safety stock.

Smart SAP Assistant

• Key Concepts: 
  Alpha service level is a term used in SAP Supply Network Planning (SNP). It is a measure of the service level that a customer can expect from a supplier. The alpha service level is calculated by dividing the number of orders that are delivered on time by the total number of orders. A higher alpha service level indicates that the supplier is more reliable and can be trusted to deliver orders on time. 
  
  How to use it: 
  The alpha service level can be used to evaluate the performance of suppliers and determine which ones are most reliable. It can also be used to identify areas where improvements can be made in order to increase the reliability of suppliers. Additionally, it can be used to set targets for suppliers in order to ensure that they are meeting customer expectations. 
  
  Tips & Tricks: 
  When evaluating suppliers, it is important to consider other factors in addition to the alpha service level. Factors such as cost, quality, and delivery times should also be taken into account when making decisions about which suppliers to use. Additionally, it is important to monitor the alpha service level over time in order to identify any changes in performance. 
  
  Related Information: 
  The alpha service level is closely related to other measures of supplier performance such as on-time delivery rate and fill rate. Additionally, it is related to other measures of customer satisfaction such as customer satisfaction score and customer retention rate.