Service rate
Encyclopedia
- In business, service rate is a performance metric used to measure the customer serviceCustomer serviceCustomer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
in a supplySupply (economics)In economics, supply is the amount of some product producers are willing and able to sell at a given price all other factors being held constant. Usually, supply is plotted as a supply curve showing the relationship of price to the amount of product businesses are willing to sell.In economics the...
organization. One example of a service rate measures the number of units filled as a percentage of the total ordered and is known as fill rate. If customer orders total 1000 units, and you can only meet 900 units of that order, your fill rate is 90%.
- In statistics, notably in queuing theory, service rate denotes the rate at which customers are being served in a system. It is the reciprocal of the service time. For example, a supermarket cash desk with an average service time of 30 seconds per customer would have an average service rate of 2 per minute. In statistics the Greek letter
is used for the service rate.