Number of Fills | Concept

Ole Ersoy
Apr - 22  -  2 min

The Number of Fills for Capital Intensive and Low Demand Service Parts is the quantity of demand that we expect to be able to service given the amount of inventory we have decided to hold for the part.

The Number of Fills is calculated using the Demand Distribution for the part.


Suppose we think mean demand is 3 units.

We are considering stocking 4 units using an S, S-1 Inventory Policy.

The Number of Fills will be the sum of the probabilities times mean demand or (probability(1) + probabillity(2) + probability(3) + probility(4)) * 3.

Lets assume that the Demand Distribution is a six sided dice. 

In this case the Number of Fills is mean demand times the probability sum or (1/6 + 1/6 + 1/6 + 1/6)*3 or 2/3 * 3 or 2.

So If we stock stock 4 units we expect to fufill 2/3 of the expected demand.