Service degree of warehousing

is a measure of the readiness of items for delivery.If the warehouse is not immediately ready for delivery when there is demand, the S. is below 100%. The S. is used to calculate the safety stock, among other things. If the S. is increased, the warehousing costs increase due to larger safety stocks.
The delivery time is also often used as a measure of S. In this sense, VMI warehouses have a very high S.
Cf. vendor-managed inventory.

Quelle: logipedia / Fraunhofer IML