What is defined by a "service level agreement" (SLA)?

A service level agreement (SLA) is primarily defined as a document that outlines performance expectations between a service provider and a customer. This agreement serves as a formal contract that stipulates the specific services agreed upon, the quality of service that the provider is expected to deliver, and the metrics by which that performance will be measured.

SLAs are crucial in managing customer expectations and ensuring accountability from service providers. They often contain details like response times, service availability, and penalties for non-compliance, thus establishing a clear framework for both parties. In essence, an SLA ensures that the service recipient understands what to expect and that the provider commits to meeting those standards, thereby fostering a transparent and trustworthy relationship.

In contrast, the other options do not accurately encapsulate the essence of an SLA. While a contract detailing product pricing is important in business transactions, it does not specifically address service performance or commitments. Guidelines for employee performance relate to internal organizational standards rather than the relationship between a service provider and a customer. Similarly, a plan for inventory management pertains to logistics and stock control, which is distinctly different from the performance expectations set forth in an SLA.