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Supply Chain Management Professional (SCMP) · Question

What does a 'service level agreement' (SLA) primarily define?

An SLA is a contract between a service provider and its customer that specifies the level of service expected. It outlines metrics, responsibilities, and remedi

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Question: What does a 'service level agreement' (SLA) primarily define?

Answer options:

  • The price of goods to be purchased.
  • The terms for terminating a contract. ✅ The minimum performance standards a service provider must meet.
  • The legal ownership of intellectual property.

Correct answer: The minimum performance standards a service provider must meet.

Explanation: An SLA is a contract between a service provider and its customer that specifies the level of service expected. It outlines metrics, responsibilities, and remedies.

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