What is service level in SAP SCM-FRE - Forecasting and Replenishment?

SAP Term: service level

• Component: SCM-FRE

• Component Name: Forecasting and Replenishment

• Description: Percentage value indicating the likelihood of product availability based upon the supplier's past delivery performance and reliability.

Smart SAP Assistant

• Key Concepts: 
  Service level is a measure of the availability of a product or service. It is expressed as a percentage of the total demand that can be met from existing inventory. In SAP SCM-FRE Forecasting and Replenishment, service level is used to determine the optimal inventory levels for a given product or service. 
  
  How to use it: 
  In SAP SCM-FRE Forecasting and Replenishment, service level is used to determine the optimal inventory levels for a given product or service. The system calculates the optimal inventory levels based on the demand forecast, lead time, and safety stock. The system then uses these values to calculate the service level for each item. 
  
  Tips & Tricks: 
  When setting up service level in SAP SCM-FRE Forecasting and Replenishment, it is important to consider the lead time and safety stock for each item. This will ensure that the system is able to accurately calculate the optimal inventory levels for each item. Additionally, it is important to monitor the service level on a regular basis to ensure that it remains at an acceptable level. 
  
  Related Information: 
  For more information on setting up and using service level in SAP SCM-FRE Forecasting and Replenishment, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tips and tricks for setting up and using service level in SAP SCM-FRE Forecasting and Replenishment.