The percentage of demand for an item that is met from on-hand inventory,relative to the total demand for that item is referred to as the
A) safety stock ratio.
B) cycle service ratio.
C) item fill rate.
D) reorder rate.

Question

Quizplus · Accepted Answer

The percentage of demand for an item that is met from on-hand inventory, relative to the total demand for that item is referred to as the item fill rate. Safety stock ratio is the ratio of safety stock to average demand, cycle service ratio is the ratio of demand during the lead time to the amount of inventory on hand, and the reorder rate is the rate at which inventory needs to be replenished. None of these options fully capture the definition of item fill rate.

The Percentage of Demand for an Item That Is Met