The service level for inventory planning is associated with the risk of a stock-out.

Name: The service level for inventory planning is associated with the risk of a stock-out.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Service level determines the level of risk a company is willing to accept in terms of stock-outs. A higher service level means lower risk of a stock-out, while a lower service level means higher risk of a stock-out. Therefore, the service level and stock-out risk are directly related.

The Service Level for Inventory Planning Is Associated with the Risk