Glossary

availability The amount of time a service is usable in a given time window. Often referred to in terms of “nines,” as in “five nines” or “four nines availability.” Five nines availability equates to 5.256 minutes of downtime per calendar year, while four nines equals 52.56 minutes of downtime per year.

bullwhip effect A supply chain phenomenon where incomplete or inaccurate information results in high variability in production outputs and typically increased costs/waste.

churn rate A company’s churn rate indicates how many customers have been lost within a given time period (typically monthly, quarterly, or annually). Churn rate is one of the most important key performance indicators (KPI) for service providers.

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