Advanced safety stock methods can calculate and account for variability on both the supply and demand sides. Furthermore, service level and forecast error simulations can be performed. Service level can be defined in two ways:
The percentage of periods with full deliveries compared to all periods (alpha service level)
The ratio of the quantity delivered on time to the total quantity requested (beta service level)
Additionally, the system supports reordering cycles (i.e., reorders can only be placed during specific periods, e.g., every 4 weeks) and reordering point strategies (i.e., reorders are placed if the stock falls below a minimum level).