If a firm was only able to fill 9,550 out of 10,000 orders received, its service...
If a firm was only able to fill 9,550 out of 10,000
orders received, its service level or fill rate is 0.005.
True or False?
Homework Answers
Fill rate is defined as the number of items a customer has ordered to the number of items available with the organization. In the given case, 10,000 orders were received, however, the company was able to fulfill only 9,550 orders. Therefore, the fill rate will be calculated as follows:
Fill rate = No. of ordered shipped/No. of ordered received
=9,550/10,000
=0.955
Therefore, the given statement is false.
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