What is service loss in SAP (SCM-APO-SPP - Service Parts Planning)?

SAP Term: service loss

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: A quantity or a schedule line of a sales order is characterized as service loss if it could not be fulfilled on time.

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• Key Concepts: 
  Service loss is a term used in SAP SCM-APO-SPP Service Parts Planning to describe the difference between the expected and actual service levels. It is calculated by subtracting the actual service level from the expected service level. The expected service level is determined by the customer's desired service level, while the actual service level is determined by the number of parts available to meet customer demand. 
  
  How to use it: 
  In SAP SCM-APO-SPP Service Parts Planning, service loss can be used to measure the performance of a supply chain. It can be used to identify areas where improvements can be made in order to increase customer satisfaction and reduce costs. It can also be used to compare different supply chains and determine which one is more efficient. 
  
  Tips & Tricks: 
  When calculating service loss, it is important to consider both the expected and actual service levels. This will help ensure that the calculation is accurate and that any improvements made are based on accurate data. Additionally, it is important to consider other factors such as lead times, inventory levels, and customer demand when calculating service loss. 
  
  Related Information: 
  Service loss is closely related to other terms such as inventory turnover, fill rate, and stockout rate. These terms are all used to measure the performance of a supply chain and can be used in conjunction with service loss to gain a better understanding of how a supply chain is performing.