Fill rate and backorder cost
Line fill rate, the monthly cost of backorders and lost sales, and the saving at a target fill rate.
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Comes with the data scientist plan: every tool for the role, from $10.20 a month at the launch price.
- Your own numbers, worked out as often as you like
- The full service review sheet you can print or save to My work
- 3 cited sources, linked, with the checks to make
- Every other tool for the same role, in the same plan
- A plain-words read of your result (a fuller AI read with the Bifrost AI add-on)
Included in these role plans
Example result · fictional numbers
What you get: service review sheet
Worked out by this tool from its default inputs. Its role plan lets you run your own numbers, print the sheet and save it.
94.4% of lines and about 85.2% of orders ship complete; shorts cost $36,540.00 a month
- Line fill rate
- 94.4%
- Short lines
- 1,400
- Monthly cost of shorts
- $36,540 ($17,640 backorders, $18,900 lost margin)
- Saving at 98.0% fill
- $23,490 per month
Service scorecard
- Line fill rate
- 94.4% (1,400 lines short of 25,000 lines)
- Lines per order
- 2.8
- Orders shipped complete (estimate)
- 85.2%
- Perfect orders (complete, on time, clean)
- 81.4% (85.2% × 96.0% × 99.5%)
- Orders hit by at least one short (estimate)
- 1,331 of 9,000
Also on the sheet
- Short lines by cause · 4 lines, starting with “No stock in the building”
- Business case for 98.0% fill · 5 lines, starting with “Short lines to remove”
- Corrective action log · 3 lines, starting with “No stock in the building (Buyer-planner)”
The plain-words read of this example
You ship 94.4% of lines complete; with 2.8 lines an order, that is about 85.2% of orders complete and 81.4% perfect once on-time and damage-free are counted. The 1,400 lines short a month cost $36,540.00, $21,924.00 of it from items not in stock and $9,135.00 from wrong system counts. Reaching 98.0% saves $281,880.00 a year; less $11,000.00 to carry $50,000.00 of extra stock, that nets $270,880.00. Size the extra stock item by item from each item's demand spread, not across the board. Fix counts and picks first: they lift fill without more inventory.
3 cited sources
- ESD.260J Logistics Systems, lecture 11: inventory management with probabilistic demand and safety stock (MIT OpenCourseWare)
- H.15 Selected Interest Rates (Board of Governors of the Federal Reserve System)
- Monthly Wholesale Trade: Sales and Inventories (US Census Bureau)
Plus 5 step-by-step checks, a print layout and a link that reopens it with your numbers.