Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

5.3.1b The Cumulative Fill Rate

Intended learning outcomes: Explain and experience the cumulative fill rate.

Continuation from previous subsection (5.3.1)

The cumulative fill rate is the probability that several different components will be available simultaneously on demand.

If the fill rate for a component is not very close to 100%, then the probability that several items of a product will be available from inventory simultaneously will be very low. For example, if we need to have 10 components from inventory for an assembly, and the fill rate is 95%, the cumulative fill rate is only 60% (» 0.9510), which usually will not suffice. Figure illustrates this phenomenon.

Fig.       Cumulative fill rate with components required simultaneously.

Complex products such as machines are very often made up of a large number of components. In this case, avoiding planning errors means ensuring a high fill rate for each component. Materials management, both in techniques and in form, is very dependent on the characteristic features of planning & control.

The animation shows how to calculate the cumulative service level, the term service level being here used identically to fill rate.
Click on the arrow in the top left corner to select the level of output.

Quiz on Chapter 5.3.1. (not yet available): Basic Principles of Materials Management Concepts.[kml_flashembed movie="" height="75%" width="100%" /]

Course section 5.3: Subsections and their intended learning outcomes

  • 5.3.4b Overview of Scheduling and Capacity Management Techniques

    Intended learning outcomes: Produce an overview on order-oriented infinite loading, order-wise infinite and finite loading, operations-oriented and order-oriented finite loading, constraint-oriented finite loading, load-oriented order release (Loor), capacity-oriented materials management (Corma).

  • 5.3.5 Available-to-Promise (ATP) and Capable-to-Promise (CTP)

    Intended learning outcomes: Explain available-to-promise (ATP) and the determination of ATP quantities. Produce an overview on the techniques of multilevel available-to-promise (MLATP) and capable-to-promise (CTP).