Question

The category of inventory performance metrics that addresses effectiveness in terms of meeting demand requirements is referred to as _____. Multiple choice question. service level asset productivity inventory turnover days of supply

Answer 1

Answer:

service level

Explanation:

Service level in inventory management is defined as the probability of not hitting a product stock out in a business as it relates to customer demands.

There needs to be a balance between cost of inventory (or storage) and cost of having a stock out. Such that there is a guarantee that a depletion in stock does not occur.

A failure in service level will lead to customer dissatisfaction as a result of missed sales.