Service Level
Supply Chain
Service Level
A measure of how reliably customer demand is fulfilled, commonly expressed as fill rate, cycle-service level or on-time delivery.
Examples
- 01The target service level for A items is 98 %, meaning 98 of 100 customer orders are delivered from stock.
- 02The supply review shows that the service level for small dealers is 6 points lower than for large accounts because their orders are picked last.
- 03When the service level for spare parts drops, planning increases safety stock for the most critical items.