Glossary
What is Fill Rate?
Last updated July 2026
Definition
Fill rate is the percentage of demand met from stock on hand without backorder. It's the service metric excess-reduction efforts must protect.
Formula
Fill Rate = Units Shipped from Stock ÷ Units Ordered The goal of good inventory management is not the lowest stock — it's the lowest stock that still meets service. Fill rate is how you keep score.
Targeting excess and obsolete SKUs (which serve little demand) lets you cut inventory while holding, or even improving, fill rate.
Part of Excess & obsolete inventory.
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