Formally defined, a fill rate is the percentage of customer orders that a company can ship or, “fill”, immediately from the inventory you have on hand without placing backorders, running out of stock or missing sales. Ok, such a valuable measurement must be quite complex to calculate, right? Actually another powerful aspect of the fill rate is its simplicity to calculate. The fill rate can be generated at any time to help an organization understand what they can fill. What does the output actually tell us?
Why Measure Fill Rate?
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September 2023
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