Logistics & Supply Chain
Basic

Fill Rate

Share of customer demand met immediately from stock.

Formula

FR=units shippedunits ordered×100FR = \frac{units\ shipped}{units\ ordered} \times 100

Variables

FRFill rate (%)
units shippedUnits delivered on time
units orderedUnits requested

Example

940 of 1000 shipped: FR = 94%

Did You Know?

A 95% fill rate still means one in twenty order lines disappoints a customer.

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Economic Order Quantity

Intermediate

Order size that minimises the combined cost of ordering and holding stock.

Reorder Point

Basic

Stock level that triggers a new order, covering demand during the lead time.

Safety Stock

Advanced

Buffer inventory that absorbs demand variability during lead time.

Inventory Turnover

Basic

How many times inventory is sold and replaced in a period.

Days Inventory Outstanding

Basic

Average number of days stock sits before being sold.

Little's Law

Intermediate

Average items in a system equals arrival rate times average time in the system.