How does fill rate differ from stock availability?

• A. Fill rate measures stock on hand; availability measures lines fulfilled.
• B. Fill rate measures percentage of order lines fulfilled on first request; stock availability indicates whether items are in stock.
• C. Fill rate is a measure of supplier lead time; stock availability is lead time.
• D. Fill rate and stock availability are the same.

Answer: (B)

Fill rate is a performance metric that shows what portion of an order’s lines are fulfilled from stock on the first attempt. It focuses on how completely you can satisfy an order right away, counting each line item that is shipped as requested. Stock availability, on the other hand, is simply the status of whether an item is in stock at all. You might have some items available and others not; stock availability tells you which items are in stock, but it doesn’t measure how well you fulfill the whole order on the first try. So if all requested lines can be shipped immediately, fill rate is 100%. If an item is out of stock even though others are available, fill rate drops because not every line could be fulfilled on the first pass. The other statements mischaracterize fill rate as a measure of stock on hand or as lead time, which are different concepts: lead time is the time to receive goods after ordering, not the immediate ability to fulfill an order. They’re not the same, because fill rate and stock availability capture different aspects of inventory performance.