Answer :
Answer:
The answer is "Option D".
Explanation:
The system's performance is gauged only by the level of service. The quality of service specifies the percentage of such goals which should be met. That likelihood of stock remaining in inventory based on a set level of Security Stock is referred to as the service level. Ex: In a contact center, the number of calls that are addressed. That percentage of consumers who have waited less than a fixed amount of time.
The probability that inventory will remain in stock is based upon a specified level of safety stock, which is called the service level stock.
Safety stock safeguards and maintains the effective production process of the organization during the busy season or unexpected rise in demand.
Service level stock states the probability about the stock of inventory that is with the business at the time of lead would be sufficient to fulfill the demand and production requirements. Thus, the situation of stock out would not be seen during the lead period.
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