If a business frequently runs out of inventory, their service levels are negative.

Name: If a business frequently runs out of inventory, their service levels are negative.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Service levels refer to the performance of a supply chain system in meeting customer demand, not to a negative value but rather to a percentage of demand met on time. Running out of inventory indicates low or poor service levels, but these levels cannot be negative.

If a Business Frequently Runs Out of Inventory, Their Service