The fill rate is the fraction of customer demand that is met through immediate stock availability, without backorders or lost sales. The fill rate differs from the service level indicator.
Ex: Imagine that a customer requests 60 cases of product from a business and the business has shipped 20 cases. The fill rate is 20 divided by 60, or 33.3 percent.
Fill rate refers to the percentage of customer demand that is met by immediate stock availability, without backorders, stockouts or lost sales. Simply put, it’s an indication of how well you’re able to meet customer demand at any given time.
Measuring your fill rate is critical because if it remains low, it could lead to loss of sales, loss of customers, and a poor reputation.
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