To ensure a service level of 98%, a pharmacy uses a continuous review system for its inventory of flu vaccines. The calculated reorder point is 20 on-hand flu vaccines.

Curiously, a recent new-hire at the pharmacy asks you "What is a 98% service level?"

As if doing so for someone not at all familiar with inventory management or operations management terminology-such as a recent new hire-explain the concept of "a 98% service level."