Inventory Fill Rate Calculation

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Inventory Fill Rate Calculator

Your Inventory Fill Rate is:
0%

What is Inventory Fill Rate?

The Inventory Fill Rate (or Order Fill Rate) is a critical supply chain metric that measures the percentage of customer demand that is satisfied through immediate stock availability, without backorders or lost sales. It is a direct indicator of your inventory's ability to meet customer expectations.

How to Calculate Fill Rate

The formula for Unit Fill Rate is straightforward:

Fill Rate = (Total Units Shipped / Total Units Ordered) × 100

While often confused with "Order Ship Rate," Fill Rate specifically looks at the quantity of items. For example, if a customer orders 10 items but you only have 8 in stock, your fill rate for that order is 80%.

Importance of High Fill Rates

  • Customer Satisfaction: High fill rates ensure customers receive what they want immediately, reducing churn.
  • Reduced Operational Costs: Avoiding backorders saves on secondary shipping costs and administrative overhead.
  • Sales Growth: Consistently meeting demand prevents customers from turning to competitors when items are out of stock.
Real-World Example:
A local electronics retailer receives orders for 1,200 units of a specific wireless mouse over a month. Due to a delay in the supply chain, they were only able to ship 1,050 units from their current stock.

Calculation: (1,050 / 1,200) × 100 = 87.5% Fill Rate.

Optimization Tips

If your fill rate is below 95%, consider implementing safety stock levels, improving demand forecasting using historical data, or diversifying your supplier base to mitigate stockout risks.

function calculateFillRate() { var ordered = document.getElementById('totalUnitsOrdered').value; var shipped = document.getElementById('totalUnitsShipped').value; var resultDiv = document.getElementById('resultDisplay'); var percentDisplay = document.getElementById('fillRatePercentage'); var interpretation = document.getElementById('interpretation'); var numOrdered = parseFloat(ordered); var numShipped = parseFloat(shipped); if (isNaN(numOrdered) || isNaN(numShipped) || numOrdered numOrdered) { alert("Units shipped cannot exceed units ordered for a standard fill rate calculation."); return; } var fillRate = (numShipped / numOrdered) * 100; var formattedRate = fillRate.toFixed(2); percentDisplay.innerHTML = formattedRate + "%"; resultDiv.style.display = "block"; var msg = ""; if (fillRate >= 98) { msg = "Excellent! Your fill rate is world-class, indicating optimal inventory management."; } else if (fillRate >= 90) { msg = "Good. You are meeting most demand, but there is room to optimize safety stock."; } else if (fillRate >= 80) { msg = "Average. You may be losing customers to competitors due to frequent stockouts."; } else { msg = "Warning: Low fill rate. Your supply chain needs immediate review to prevent revenue loss."; } interpretation.innerHTML = msg; }

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