A service level of 95% means there is a 0.95 probability
A)of meeting all demand.
B)of a stockout.
C)that supply will exceed demand.
D)that demand will be met during the lead time.

Question

Quizplus · Accepted Answer

A service level of 95% means that there is a 95% probability of meeting demand during the lead time. Therefore, the correct choice is D, which states that the probability refers to meeting demand during the lead time.

A Service Level of 95% Means There Is a 0