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Fill Rate Formula:
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Fill Rate is a key performance indicator in supply chain management that measures the percentage of customer demand fulfilled from available inventory. It represents how effectively a business can meet customer orders with its current stock.
The calculator uses the Fill Rate formula:
Where:
Explanation: The formula calculates what percentage of ordered items were successfully shipped to customers. A higher fill rate indicates better inventory management and customer satisfaction.
Details: Fill rate is crucial for evaluating supply chain performance, identifying inventory issues, improving customer satisfaction, and optimizing inventory levels. Businesses typically aim for fill rates above 95% for optimal performance.
Tips: Enter the number of items shipped and items ordered as whole numbers. Items shipped cannot exceed items ordered. Both values must be valid (shipped ≥ 0, ordered ≥ 1).
Q1: What is a good fill rate percentage?
A: Most businesses aim for 95-98% fill rate. Rates above 98% are considered excellent, while rates below 92% may indicate significant inventory management issues.
Q2: How is fill rate different from perfect order rate?
A: Fill rate measures quantity fulfillment only, while perfect order rate considers multiple factors including on-time delivery, complete shipment, damage-free delivery, and accurate documentation.
Q3: How often should fill rate be calculated?
A: Most businesses calculate fill rate weekly or monthly, though some high-volume operations may track it daily for critical products.
Q4: What are common causes of low fill rates?
A: Common causes include inaccurate demand forecasting, supplier issues, inventory inaccuracies, warehouse inefficiencies, and transportation problems.
Q5: Can fill rate be over 100%?
A: No, fill rate cannot exceed 100% as you cannot ship more items than were ordered. If calculated over 100%, it indicates a data error.