Fill rate impact is a measure of how much an individual item has reduced the location's fill rate.

It is expressed as a percentage, which is the amount by which the location's achieved fill rate has been decreased as a result of the item’s achieved fill rate being less than 100%. For example, a fill rate impact of 2% means that the item is responsible for reducing the location's achieved fill rate by 2%. The best fill rate impact is 0% which means the item has not been out of stock recently.

The purpose of the percentage is to give an idea of which items are affecting the location’s achieved fill rate the most so that focus can be placed on these items.

The formula to calculate an item’s fill rate impact is as follows:

(100 - item achieved fill rate) * item forecast / location forecast

Note that target fill rate is not used in the calculation of fill rate impact.

The forecast used by the formula is valued by average cost and measured over 12 months. It includes distribution forecasts and BOM forecasts should they exist.

Only stocked items have an impact on the location's achieved fill rate, and consequently only stocked items will have a fill rate impact.

Keep in mind that an item's achieved fill rate is measured over the last 30 days so the fill rate impact will provide visibility on both current and recent stock outs.

The top 5 fill rate impact items can be seen within the Fill rate panel on the Dashboard. A drilldown report for all items is also available.

Please refer to the article Fill rate impact calculation for a detailed example and calculation of fill rate impact

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