Service level is:
A)the probability of stocking out.
B)the probability of not stocking out.
C)something that should be minimized in retail.
D)calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage)for single-period models.
E)B and D

Question

Quizplus · Accepted Answer

Service level is the probability of not stocking out, which is choice B. It is also calculated as the cost of a shortage divided by (the cost of shortage + the cost of overage) for single-period models, which is choice D.

Service Level Is