Difference between revisions of "RS2"

Latest revision as of 14:48, 10 June 2017

Fill Rate measures the ability to ship from stock within the agreed service level window (e.g. same-day or 24 hrs); demonstrating the speed at which it promises to satisfy demand.

Calculation

where

• Delivered = The total volume shipped within the service level window in the reporting period
• Requested = The total volume ordered for ASAP shipment in the reporting period. If applicable this may include orders canceled due to lack of product.

Unit of measure: %

Importance

A higher Order Fill Rate indicates that the company is better at fulfilling orders within the lead-time service level. Consistently meeting the lead-time enables customers to use the lead-time service levels in their planning and execution processes and can be a competitive advantage. Order Fill Rate is typically used for supply chains where stock-outs are relevant (Make-to-Stock supply chains).

Notes

Order Fill Rate is considered less relevant to Make-to-Order and Engineer-to-Order supply chains, these generally put more emphasis on improving RS1. Order Cycle Time focuses on the average and deviation of the time. Order Fill Rate focuses on the average and deviation of quantities.

The service level window is the desired, communicated and/or agreed order-to-ship lead-time for the product. An example is same-day shipping for an office supplies (online) retailer. A key challenge exists for businesses where the impact of a stock-out cannot be recorded by evaluating customer orders.

Order Fill Rate is a shipment date based metric.

5.00

(one vote)