The fill rate ______.
A)is the percentage of customer orders that can be satisfied from inventory in stock
B)is inversely related to effectiveness of inventory management
C)is the product of the stock-out rate and rate at which customers place orders
D)is lower during periods of seasonal demand

Question

Quizplus · Accepted Answer

The fill rate measures the percentage of customer orders that can be fulfilled from the inventory in stock, making option A the correct answer. The effectiveness of inventory management, the stock-out rate, and the rate at which customers place orders may all have an impact on the fill rate, but they do not directly define it. The fill rate can be affected by seasonal demand, but this is not always the case, so option D is incorrect.

The Fill Rate ______