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3.3 Aggregate Financial and Service Targets

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Organisations should assess their inventory performance with respect to financial and service targets. While service targets are needed at SKU level, assessment of service targets at higher levels of aggregation elevates an operational task to a strategic issue. A strategic view of service and costs is essential because there is often a trade‐off between these two aspects of performance and looking at just one aspect may lead to poor decisions.

Intermittent Demand Forecasting

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