Service Levels in (Q,R)System In reality,it is difficult to determine the exact value of stock-out cost p.A common substitute for a stock-out cost is a service level. Service level generally refers to the probability that a demand or a collection of demand is met. Service level can be applied both to periodic review and continuous review systems,that is,(Q,R)system Two types of service levels for continuous review system:Type 1 and Type 2Service Levels in (Q, R) System • In reality, it is difficult to determine the exact value of stock-out cost p. A common substitute for a stock-out cost is a service level. • Service level generally refers to the probability that a demand or a collection of demand is met. • Service level can be applied both to periodic review and continuous review systems, that is, (Q, R) system. • Two types of service levels for continuous review system: Type 1 and Type 2