Service level

To deliver ( sometimes also: delivery ) referred to in the logistics, the ability to deliver from stock. Is expressed readiness to deliver on the service level index (LBG ) or service level. It flows into the delivery service. For the service level, there are several different definitions. It is a percentage rate that indicates how high the proportion of fully executed orders on the amount of total orders. formula:

Instead of the number and the order may be considered in each case.

Many companies are content with a delivery capability of 90 to 95 %, as the attainment of 100 % would mean disproportionate costs, as increasing storage costs considerably. In contrast, the turnover does not increase significantly because the goods are not often sold off. The gain diminishes itself.

The forecast delivery readiness can be determined by establishing an appropriate safety stock.

The service level depends mainly on the safety factor. The safety factor determines the amount of safety stock and is calculated as the " inverse standard normal distribution" of the desired stock availability.

For a safety factor of 0, delivery readiness is 50 %. With increasing safety factor, the readiness to deliver increased:

A desired delivery performance of 99.9 % requires a three times as high safety factor and therefore also a three times as high safety stock compared to a stock availability of 85.0 %.