Operations / Supply Chain
Fill Rate & Service Level (Type 1 vs Type 2)
How reliably stock is there when demand arrives, expressed either as the chance of not stocking out, or as the fraction of demand actually filled.
The fork, why two teams get different numbers
These are two different numbers that share the phrase "service level." CYCLE SERVICE LEVEL (Type 1, α) is the PROBABILITY of no stockout during a replenishment cycle, an event probability.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: APICS/ASCM inventory management · Silver-Pyke-Peterson inventory theory (Type 1 / Type 2) · retail in-stock convention