Degree of service describes an indicator by which to measure the extent to which demand for some product can be completely covered at any time with existing resources.
Brief description
Degree of service, degree of supply service or also degree of supply readiness captures the security of material availability. It therefore shows the amount of material security of production or distribution in finished products. Through modern manufacturing concepts (e.g. JIT, JIS), even with low resources, a high degree of service can be achieved. This indicator is calculated by comparing the number of orders that can be serviced immediately (possible alternative assessment based on quantity, monetary volume, etc.) to the total number of orders.
Designs
Degree of service [%] = number of orders possible for immediate delivery x 100 / number of orders
Degree of service [%] = sum of immediately serviced quantities x 100 / total quantities ordered
