1. What is Fill Rate?

Fill Rate is a key performance indicator that measures the percentage of customer demand that is met through immediate stock availability without backorders or lost sales.

2. How Does the Calculator Work?

The calculator uses the Fill Rate formula:

Where:

• \( O \) — Orders filled (units)
• \( D \) — Total demand (units)

Explanation: The formula calculates the percentage of total customer demand that was successfully fulfilled from available inventory.

3. Importance of Fill Rate Calculation

Details: Fill Rate is crucial for inventory management, customer satisfaction measurement, and supply chain optimization. A high fill rate indicates good inventory management and customer service levels.

4. Using the Calculator

Tips: Enter the number of orders filled and total demand in units. Both values must be valid (demand > 0, orders filled cannot be negative).

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good fill rate?
A: Most industries aim for 95-98% fill rate. The ideal rate depends on your industry, product type, and customer expectations.

Q2: How does fill rate differ from perfect order rate?
A: Fill rate measures inventory availability, while perfect order rate includes additional factors like on-time delivery and damage-free shipments.

Q3: How often should fill rate be measured?
A: Typically measured daily, weekly, or monthly depending on business needs and inventory turnover rates.

Q4: What are common reasons for low fill rates?
A: Poor inventory forecasting, supply chain disruptions, inadequate safety stock, and sudden demand spikes can all contribute to low fill rates.

Q5: How can fill rate be improved?
A: Strategies include better demand forecasting, optimizing safety stock levels, improving supplier relationships, and implementing efficient inventory management systems.