1. What is Inventory Fill Rate?

The Inventory Fill Rate is a key performance indicator that measures the percentage of customer demand that is met immediately from available inventory. It represents how effectively a business is fulfilling orders from stock without backorders or stockouts.

2. How Does the Calculator Work?

The calculator uses the fill rate formula:

Where:

• Units Shipped — Number of units actually delivered to customers
• Units Ordered — Total number of units requested by customers

Explanation: This calculation shows what percentage of total demand was fulfilled from available inventory, with 100% representing perfect order fulfillment.

3. Importance of Fill Rate Calculation

Details: Fill rate is crucial for inventory management, customer satisfaction measurement, and supply chain optimization. Higher fill rates typically indicate better inventory management and higher customer satisfaction levels.

4. Using the Calculator

Tips: Enter the number of units shipped and units ordered as whole numbers. Both values must be positive, and units ordered must be greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good fill rate?
A: Most industries aim for 85-95% fill rates. Excellent operations can achieve 95-98%, while perfect 100% is rare due to various operational constraints.

Q2: How does fill rate differ from perfect order rate?
A: Fill rate measures quantity fulfillment only, while perfect order rate includes additional factors like on-time delivery, accurate documentation, and damage-free shipment.

Q3: How often should fill rate be calculated?
A: Most businesses calculate fill rate weekly or monthly, though high-volume operations may track it daily for critical products.

Q4: What are common reasons for low fill rates?
A: Common causes include inaccurate demand forecasting, supply chain disruptions, insufficient safety stock, and inefficient inventory management practices.

Q5: How can businesses improve their fill rate?
A: Strategies include improving demand forecasting, optimizing safety stock levels, enhancing supplier relationships, implementing better inventory management systems, and reducing lead times.