Customer-service standards set goals and define acceptable performance for the quality of service that a firm expects to deliver to its customers. The designers of the physical distribution systems must then try to attain these goals for the lowest possible cost.

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Customer-service standards are benchmarks that dictate the level of service a company aims to provide, and the design of physical distribution systems is indeed focused on achieving these standards efficiently, balancing quality with cost.

Customer-Service Standards Set Goals and Define Acceptable Performance for the Quality