Edited by Bev Chretien
Stocked out items can have an impact on the overall achieved fill rate. Because the fill rate is weighted by the demand forecast at cost, the higher the demand value of the item and the cost, the greater the impact to the achieved fill rate.
An item is considered to be stocked-out, if:
It is classified as a stocked item,
It currently has available stock less than or equal to zero, and
It currently has demand (sales forecast, BOM demand or distribution demand)
This means that even if an item has zero stock available, it will not be considered stocked-out if there is no demand for that item.
Items that are stocked out are not limited to existing inventory with sales history.
New items that have not yet been received to any locations, but have a manual forecast, are also classified as stocked out and can affect the achieved fill rate.
To determine what impact an item in inventory has on the achieved fill rate, open the fill rate report. This is found at the bottom of the fill rate panel.
The impact that an item has to your overall achieved fill rate is listed under the ‘Fill Impact’ column, and is given as the percentage of impact to the overall achieved fill rate. Certain stocked out items therefore will contribute to your overall achieved fill rate and some will not. The status column will indicate whether the item is currently stocked out or not.
Filtered by the fill impact column, the top 5 items will correspond to the top 5 items displayed on the fill rate panel on the dashboard.
Remember, the filter option can be used on the screen to search for specific products, product groups, suppliers, and other parameters to refine a search.
The three factors that affect the fill impact are the cost, average 12 month forecast and the fill rate percentage. For further information into the fill rate impact calculation, please see here. The higher the cost per item, or the demand displayed in the average 12 month forecast, the higher the likelihood of an effect to the fill impact. However, an item can appear to have a high demand and cost, but still have a low fill impact when viewed in relation to the average 12 month forecast and cost of other stocked items in a particular location.
Any fill impact that is less than 0.05% will be rounded down on the dashboard to 0%.
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