Service levels represent an agreement between a customer and supplier on how long it takes for the customer to receive an order, and are generally calculated as a percentage of orders delivered on or before a specific due date (B.,2023). As a result, inventory management must ensure that enough inventory is available to meet customer demands and meet the agreed-upon service level (B., 2023). By understanding the relationship between service levels and inventory management, companies can more accurately predict customer demand and ensure they have the appropriate level of inventory on hand to meet service levels without creating excess inventory (B., 2023)