Glossary Inventory Managment / Term
Sales order processing measurement that quantifies the ability to fill orders.There are various ways of measuring fill rate. Line fill compares the number of line items shipped complete to the total number of lines ordered ( 95 line items shipped complete out of 100 lines ordered would result in a 95% line fill rate). Order fill compares the number of orders shipped complete to the total number of orders shipped. Other examples of fill rates would include dollar fill rate (comparing dollars shipped to dollars ordered), unit fill rate (comparing units shipped to units ordered). In fulfillment operations and some distribution operations where orders are generally shipped within 24 hours of receipt of order, fill rates reflect the ability to immediately ship from stock. In manufacturing operations and distribution operations that have lead-times for products, fill rates reflect the ability to ship to an agreed-to date. In these environments fill rate measurements are sometimes called On-time-and- Complete (OTC) measurement. Tolerances are sometimes used in fill rate measurements to allow lines or orders that are not shipped complete but are within the tolerance to be considered as "shipped complete". The tolerances may be based on units, dollars, lines, or dates (shipped within certain tolerance of required date).
Permanent link Fill rate - Creation date 2020-07-05