Define "fill rate" and "turn rate"
Posted:
Fri Jun 15, 2001 5:57 amby Bert
We use these terms at will daily. Does anyone have a concise working definition of these terms? Not a theoretical, book, exasperating, elongated definition, but just a brief, short understanding?
Define "fill rate" and "turn rate"
Posted:
Mon Jun 18, 2001 3:29 pmby IODcarman
fill rate-I have a stock of parts. when you order a part, if whether or not I can "fill"your order depends on it being in stock. The more I have in stock, the better my "fill rate" or ability to fill the order.
Turn rate- the frequency with which I "turn over" the quantity of parts. If the parts I have in stock is $100,000 and I sell $25,000 a month, it will take me 4 months to "turn" my inventory. My inventory would "turn over" 3 times per year. The higher the turn rate, the more gross and sales. It also indicates a cleaner leaner inventory with low excess or obsolete parts in stock.