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Myprehensive model requires six inputs for each inventory item (in addition to the items identifier part number): (1) Time-series demand data, daily if possible, at least one years worth if possible, even more is better if available; (2) Target fill-rate service level; (3) Typical, not necessarily average, lead time; (4) The reorder quantity (usually MOQ or EOQ) and package size that drive replenishment interval; (5) Number of business days in your actual service-level-measurement cycle, for example 90 days if actual service-level performance is for a quarter, so that your items actual performance and my models results useparable time frames; (6) Probability that unfulfilled demand will be canceled, a value of 0 if unfulfilled demand bes past-due and is fulfilled late, or 100 if demand not fulfilled on time is canceled.
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