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Service level
25.07.2013 15:00

Service level

1) (1) Distribution term meaning the level (ie frequency, accuracy and speed) of delivery service given to customers (normally refers to standard level rather than exceptional). (2) The desired probability that a demand can be met from stock (for an individual item, group of items or a system) which can be expressed in a number of ways:

- Percentage of orders completely satisfied from stock.

- Percentage of units demanded which are met from stock.

- Percentage of units demanded which are delivered on time.

- Percentage of time there is stock available.

- Percentage of stock cycles without shortages.

- Percentage of item-months for which there is stock available. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.220 (288 p.)

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