Hi Guys,
I am testing the parameter in BS recently.
This is what I find,
1.
service level 98%
target days' supply 5 7 10 15
safety stock 198 147 83 0
Which means when the service level is 98%, target days goes up, then safety stock is down.
When I set target days' supply to 15, safety stock is 0.
2.
target days' supply 7
service level 99% 98% 99%
safety stock 317 147 36
Which means when the target days'supply is 7, service level goes down, then safety stock goes down.
Could someone give me any idea about these 2 cases? why this happen?
Thanks a lot
Michael