Service Level Optimization considerations

In order to use Service Level Optimization, Safety Stock Optimization must have previously been run on the model/scenarios. The Inventory Policy Summary output table must contain data for the specific scenario in order to run Service Level Optimization. Site-Product combinations without Safety Stock Optimization results are skipped in Service Level Optimization. The model must also have at least one record defined in Service Level Optimization Parameters.

• If Safety Stock Optimization has not been run on the selected scenario, you will be notified.
• If there are no records defined or included in Service Level Optimization Parameters, you are warned and the Service Level Optimization process is terminated.

Service Level Optimization optimizes the service levels of finished goods at customer-facing sites only. If a site faces both a customer and a site, it is not considered customer-facing only. If the product is a BOM component, it is not considered a finished good. Service Level Optimization skips product sets with components or at non-customer-facing only sites.

A product can only belong to one product set at one site/period based on the included Service Level Optimization Parameters.

The product Unit Price has to be higher than product Unit Value if you are using the Max Profit objective in Service Level Optimization Parameters.