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3.7.1 Responsibility for Target Setting

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Who should be responsible for setting service level targets? Often, the sales department is allocated this responsibility. Snapp (2018) suggested that this may be misguided because sales people may not be fully aware of the supply chain implications of a change in the target service level. Similarly, the supply chain department may be unaware of the competitive implications in the market. Snapp recommended a cross‐functional approach, for example in a sales and operations planning (S&OP) process, to overcome silo‐oriented target service level setting. (Please refer to Jandhyala et al. 2018, for further information on S&OP.)

Intermittent Demand Forecasting

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