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Service Ratio
Service Ratio
It refers to the degree of satisfaction of how much the response is for the requirement of product, parts, or materials. It is expressed as the reciprocal of shortage rate of goods and is calculated by means of the following formula:
Related term: Fixed Size Ordering System
It refers to the degree of satisfaction of how much the response is for the requirement of product, parts, or materials. It is expressed as the reciprocal of shortage rate of goods and is calculated by means of the following formula:
service ratio = issuing quantity / requirements
Related term: Fixed Size Ordering System
Reference：JIT Business Research Mr. Hirano Hiroyuki
Scheduled Receive/Issue | Inventory Control | Simple Average Method