Reshoring & Tariff Strategy worked example

Regional Sourcing Service Level at 98% application efficiency: a worked example

This scenario runs the regional sourcing service level calculation on the strong side: 98% application efficiency, with every other input held at its documented default. Use it when regional sourcing service level in reshoring and tariff strategy needs a buy quantity for the next reshoring and tariff strategy run and you do not want to short the line.

The inputs for this scenario

  • Regional sourcing service level area or quantity: 500 units (unchanged)
  • Regional sourcing service level use per unit: 0.08 units / unit (unchanged)
  • Application efficiency: 98 % (raised for this scenario; the documented default is 85)

Working through the calculation

  • Applying the documented formula (Theoretical regional sourcing service level amount = regional sourcing service level area or quantity × regional sourcing service level use per unit) to the inputs above produces each figure below.
  • At this operating point the engine returns 40.82 units for required regional sourcing service level quantity, the number this scenario is built around.
  • At this operating point the engine returns 40 units for theoretical regional sourcing service level amount.
  • At this operating point the engine returns 0.82 units for regional sourcing service level loss allowance.
  • At this operating point the engine returns 98 % for application efficiency.

How this compares with the baseline

  • Against the tool's baseline example, where application efficiency sits at 85% and the headline result is 47.06 units, this scenario comes in 13.27% below the baseline at 40.82 units.
  • Use it when sizing a regional or nearshore supply commitment where yield or process efficiency is less than perfect. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Required regional sourcing service level quantity: 40.82 units (headline result)
  • Theoretical regional sourcing service level amount: 40 units
  • Regional sourcing service level loss allowance: 0.82 units
  • Application efficiency: 98 %

Run it with your numbers

  • Every input above is editable in the live Regional Sourcing Service Level calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.