A Note on Initial Fill Rate.
ARMY INVENTORY RESEARCH OFFICE PHILADELPHIA PA
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A common measure of customer service is initial fill rate, the percent of demand satisfied without delay from stock on hand. An exact expression for initial fill rate when demand is Compound Poisson has previously been developed. This note presents an approximation which is simple to program and relatively quick to run. Its accuracy is distribution dependent. For Negative Binomial distribution of demand, its accuracy is evaluated and found to be good. A common alternative approach to calculate initial fill is shown to work very badly for one class of items. Author
- Numerical Mathematics