What metric is often used to assess product availability?

The service level is a critical metric used to assess product availability because it quantifies the ability of a company to meet customer demand for products without running out of stock. It is defined as the percentage of customer demand that is fulfilled from available inventory within a specified period. A high service level indicates that customers are being served effectively, and they can find the products they need when they want them.

In practice, service level targets are often set based on market expectations or company goals and may vary for different products or product categories. This metric is crucial for inventory management, as it directly relates to customer satisfaction and the potential revenue generated from product sales. Thus, improving service levels can lead to increased sales and enhanced customer loyalty.

While other metrics like lead time, inventory turnover, and stockout rate also provide valuable insights into inventory and supply chain performance, they do not specifically measure the frequency or effectiveness in fulfilling customer orders as effectively as service level does.