Which one of the following descriptions best defines the cycle-service level as a measure of customer service?
A) the preferred proportion of annual demand instantaneously filled from stock
B) the number of stockouts tolerated per year
C) the preferred proportion of days in the year when an item is in stock
D) the desired probability of not running out of stock in any one inventory cycle

Question

Quizplus · Accepted Answer

Cycle-service level is the desired probability of not running out of stock in any one inventory cycle. This means that the customer wants to be sure that the item will be available when needed within a certain cycle, and the cycle-service level indicates the desired probability of this happening. The other options (A, B, and C) do not accurately describe cycle-service level.

Which One of the Following Descriptions Best Defines the Cycle-Service