The Smart Forecaster

Pursuing best practices in demand planning, forecasting and inventory optimization

Service Level vs Fill Rate

Service Level vs Fill Rate

Service level and fill rate are two important metrics for measuring how effectively customer demand is satisfied. These terms are often confused and understanding the differences can help improve your inventory planning process. This video blog (Vlog) helps illustrate the difference with a simple example using Excel

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MAX-MIN OR ROP – ROQ

MAX-MIN OR ROP – ROQ

This guest blog details the differences between Min-Max and Reorder Point- Order Quantity replenishment logic and why it is important. It is authored by Phillip Slater, Founder of SparePartsKNowHow.com the leading educational resource for spare parts management. Mr. Slater is a global leader and consultant on materials management and specifically, engineering spare parts inventory management and optimization.

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The Right Forecast Accuracy Metric for Inventory Planning

The Right Forecast Accuracy Metric for Inventory Planning

Traditional forecasting accuracy metrics aren’t applicable when the goal is to optimize inventory. It’s “service level accuracy” that matters because just setting a service target doesn’t mean you’ll actually achieve it. Poor accuracy here has extremely costly implications. The right way to measure accuracy for inventory planning is to focus on the accuracy of the service level projection. This blog explains why and details how to calculate the metric.

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Recent Posts

  • Service Level vs Fill Rate
    Service level and fill rate are two important metrics for measuring how effectively customer demand is satisfied. These terms are often confused and understanding the differences can help improve your inventory planning process. This video blog (Vlog) helps illustrate the difference with a simple example using Excel
  • Smart Software and Epicor Enhance Supply Chain Planning
    Smart Software, a global provider of next generation 100% web-based demand planning, forecasting and inventory optimization solutions, announces today their enhanced partnership with Epicor Software Corporation. This collaboration for the first time brings the cloud-based Smart IP&O (Inventory Planning and Optimization) into the latest version of the Epicor enterprise resource planning (ERP) solution.