MEASURING STOCK SERVICE LEVELS

Most retailers would agree that stock availability is one of the keys to success but few make serious attempts to measure their current performance with any precision. Why it is important to measure the customer stock service actually achieved, possible measures which can be used and the problems of extracting the data needed from a company′s information systems are all examined. The underlying causes of stock‐outs and how stock availability in the warehouse affects the overall customer stock service are also discussed. The assumed environment is that of a retail chain which buys into central/regional warehouse(s) from which branch stocks are replenished.