What Is a Service Level?

Service level is the inventory performance target determined by the management of the enterprise. Generally refers to the percentage of user needs. In the inventory management system, its manifestations are: quantity of supply in the entire cycle / demand of the whole cycle; quantity of supply in the lead time / demand of the lead time; the number of times the customer's order is fully satisfied / the total number of orders that occur The number of replenishment cycles / total replenishment cycles when stock-outs do not occur; the time available for the goods at hand / the total service time, etc. ^[1]