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3.5 Calculating Cycle Service Levels
ОглавлениеIf we decide to proceed with a cycle service level (CSL) measure at SKU level, then we need to be able to assess the CSL implications of alternative OUT levels. The calculation of CSLs depends on the probabilities of demand over the protection interval and so, before going further, we start this section with a discussion on demand probabilities.
Table 3.2 Distribution of demand over one week.
Demand | Probability |
---|---|
0 | 0.5 |
1 | 0.3 |
2 | 0.2 |
3 or more | 0.0 |