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3.6 Calculating Fill Rates

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The unit fill rate is defined as the proportion of demand satisfied directly from stock on hand, as noted earlier. It can be calculated at both aggregate and SKU levels, and can be defined in terms of volume filled or value filled. At SKU level, volume and value fill rates will be the same (unless calculated over a period of time in which there has been a price change) but will usually differ at an aggregate level. In this section, we look at some of the issues that need to be addressed in finding the unit (volume) fill rate, and discuss how demand distributions can be used in its calculation.

Intermittent Demand Forecasting

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