Differences between service types
The following table summarizes the differences between the three available service types:
| Type 1 (Probability of not stocking out) | Type 2 (Quantity fill rate) | Type 2 (Undershoot) | Type 3 (Ready Rate) |
| Period: Risk Period | Period: Demand Period | ||
| Event Oriented: Does a shortage occur in a risk period? | Quantity Oriented: How much demand is satisfied? | Quantity Oriented: How much demand is satisfied? | Event and Duration Oriented: Is there a shortage and how long does it last? |
| Order Quantity (Q) is not required | Order Quantity (Q) is required | Order Quantity (Q) is required | Order Quantity (Q) is required |
| If Q goes up, Type 1 does not change | If Q goes up, the fill rate (FR) goes up | If Q goes up, the fill rate (FR) goes up | If Q goes up, the ready rate (RR) goes up |
| If the reorder point (ROP) goes up, Type 1 is likely to go up | If the reorder point (ROP) goes up, FR goes up | If the reorder point (ROP) goes up, FR goes up | If the reorder point (ROP) goes up, RR goes up |
Last modified: Wednesday May 15, 2024