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Service level

Supply chain flashcard on Service level, which is the percentage of purchase requests fulfilled over a given cycle. It illustrates the trade-off between inventory costs and stock-out costs. The image shows an old teacher leaving a bookstore with a stack of books, a disappointed customer willing to buy a book and a store clerk staying behind closed door with an 'Out of Stock' sign. The clerk is thinking that he only achieved a 50% service level, because his second customer remained unserved. The card advises that service level should not be confused with the fill rate, which indicates the fraction of demand served without delays or lost sales.

Artist: Marina Besfamilnaya

Learn more in the entry Service level of the Lokad knowledgebase.