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How does AGR calculate service level?
How does AGR calculate service level?

AGR calculates service level the last 30 days to help you understand how you are meeting your forecasted demand.

Updated over a year ago

Overview

AGR calculates service levels according to the number of days an item has been in stockout against the forecasted demand for that item the last 30 days. We also recommend looking at stockout bridging to manage items that have periods of stockout.

Stockout and service level

An item with no stock in AGR is considered to be in stockout. This is not an issue if the item has no demand or is a special order item. When an item has forecasted demand for a period when it is in stockout, then the service level for that item is affected as you will not be able to fulfil the demand for the item.

Service level last 30 days

You can view your service level by item in the Service level last 30 days column. AGR assigns a service level for each item on a daily basis as follows:

  • if stock > 0, then AGR assigns a service level of 100 for that day

  • if stock = 0 and there is forecasted demand, then AGR assigns a service level of 0 for that day.

The 30 day rolling service level is calculated as:

  • number of days in the last 30 days with stock * 100/30

Examples

Any item that has had no stockouts in the last 30 days, whether or not it has forecasted demand, will always have a service level of 100 for the last 30 days.

Any item that has been in stockout and has forecasted demand the past 30 days will have a service level lower than 100 depending on how long it has been in stockout during the 30-day period.

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