FILLRATE Meaning and
Definition
-
Fill rate refers to the measure of how effectively and efficiently inventory is utilized or sold within a given period of time. It specifically denotes the percentage of customer orders or demands that can be met from the available stock or inventory.
In the context of supply chain management or retail operations, fill rate represents the level of customer satisfaction achieved through fulfilling orders completely and on time. It indicates the capability of a business to meet customer expectations promptly.
Fill rate is typically calculated by dividing the total number of orders or units shipped by the total number of orders or units requested, and then multiplying the result by 100 to express it as a percentage. For instance, if a company receives 100 orders and only 90 of them are fulfilled due to inventory shortages, the fill rate would be calculated as (90/100) * 100 = 90%.
A high fill rate is generally considered desirable as it indicates good inventory management and efficient order fulfillment. It implies that a business has enough stock to meet customer demands promptly, leading to higher customer satisfaction and retention. Conversely, a low fill rate suggests inventory management issues, potential stockouts, and dissatisfied customers.
By closely monitoring and improving fill rate, businesses can optimize their inventory levels, reduce backorders or stockouts, and enhance customer service. Efficient supply chain management practices, accurate demand forecasting, and effective inventory replenishment strategies play crucial roles in achieving a high fill rate.
Etymology of FILLRATE
The term "fillrate" is derived from the combination of two words: "fill" and "rate".
The word "fill" comes from the Old English word "fyllan", which means "to make full" or "to occupy to capacity". It has roots in several Germanic languages, including Old High German "fullen" and Old Norse "fylla".
The word "rate" comes from the Latin word "ratus", meaning "reckoned" or "evaluated". It also has connections to the Old French word "rate", meaning "price" or "value".
When the words "fill" and "rate" are combined, "fillrate" refers to the number of pixels or graphics fragments that can be processed and displayed per unit of time by a graphics processing unit (GPU) or a rendering engine.
