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

The cycle-service level is defined as the desired probability of not running out of stock in any one inventory cycle, making option D the best choice out of the given options. Option A defines fill rate, option B defines stockout rate, and option C defines availability.

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