The document shows a diagram that illustrates the relationship between a company's service level, total costs, and cost of lost sales. As a company's level of customer service increases from 0% to 100%, total costs including transportation, order processing, and inventory carrying costs also increase in a positive relationship. However, the cost of lost sales from not meeting customer needs decreases as service level improves. The diagram provides a visual representation of this relationship to help businesses understand how improving customer service affects total costs.

1. Relationship Between Service Levels and Costs http://www.drawpack.com your visual business knowledge business diagrams, management models, business graphics, powerpoint templates, business slides, free downloads, business presentations, management glossary $ Total costs Transportation, order processing and inventory carrying costs Level of customer service Cost of lost sales Cost 0 100%

2. Drawpacks Business Diagrams Drawpack.com offers these premium Business Diagrams for students and professionals around the globe for their personal use for free. Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams. For further information about our service please contact us: [email_address] Please find our membership offer on http:// www.drawpack.com