Target Service Level is the service level you are seeking to achieve. It can be higher or lower than your current service level, but in most cases businesses are seeking to improve their service. Typically service level improvement ranges from 1-5pp, but can be higher if the company currently is achieving less than a 90% service level. One gross rule of thumb is that you should be able to reduce stockouts by half and still achieve some inventory reduction. To break this down, a company that is achieving a 90% fill rate should be able to improve to 95%, a 5pp improvement. A company that is achieving a 96% fill rate, should be able to improve to 98%, a 2pp improvement.