Quick Summary: Fill Rate Impact calculations demonstrate how a single item's poor performance reduces a location’s overall Achieved Fill Rate.
For necessary background, please preread Fill Rate and Fill Rate Impact Explained before proceeding with this article.
Why the Calculation Matters
The Fill Rate Impact calculation transforms an item’s individual performance into a clear, comparable metric that shows how strongly it affects the total Fill Rate.
It weighs each item by its demand and cost, so that high-cost, high-demand items that are out of stock have a greater impact on overall service performance than slow-moving, low-cost items.
This makes it easier to focus your efforts on the few items that are causing the most damage to customer satisfaction.
The Calculation Explained
The Fill Rate Impact is the difference between the current location fill rate and what the location fill rate would have been if that one specific item had an achieved fill rate of 100%.
The calculation follows these main steps:
Calculate Actual Fill Value
The system multiplies each item’s Achieved Fill Rate by its cost price and 12-month average forecast.
This gives the Actual Fill Value for each item.Calculate Fill Value at 100 Percent
The system calculates what the Fill Value would be if every item had a 100 percent Fill Rate.Calculate Current Location Fill Rate
The system divides the total Actual Fill Value by the total Fill Value at 100 percent to get the overall Achieved Fill Rate for the location.
(Achieved Fill Rate = Total supplied value ÷ Total possible value at 100 percent supply)Isolate the Item’s Impact
The system then repeats the calculation, but this time assumes the selected item had a 100 percent Fill Rate.
The difference between this new, hypothetical value and the actual Achieved Fill Rate is the item’s Fill Rate Impact.
Worked Example
Let’s look at a location with two items, A and B.
Item | Achieved Fill % | Cost Price | 12-Month Avg. Forecast | Actual Fill Value | Fill Value at 100% |
A | 80% | $50 | 100 | $4,000 | $5,000 |
B | 90% | $60 | 250 | $13,500 | $15,000 |
Total | — | — | — | $17,500 | $20,000 |
Current Location Fill Rate = $17,500 ÷ $20,000 = 87.5%
Now, let’s see what happens if Item A had a 100% fill rate. Its Actual Fill Value would become $5,000.
New Location Fill Rate = ($5,000 + $13,500) ÷ $20,000 = 92.5%
The difference between the new rate and the old rate is the item’s impact:
Fill Rate Impact for Item A = 92.5% − 87.5% = 5.0%
⚠️ Watchouts
Target Fill Rate not used: The Target Fill Rate you set for an item is not part of the Fill Rate Impact calculation.
Zero-impact items: Items with a 100 percent Achieved Fill Rate always have a Fill Rate Impact of zero.
💡 Tips
Focus on high-impact items: Concentrate on the few items with the highest Fill Impact percentages, as fixing these gives the biggest improvement in service levels.
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