LIFR (Line Item Fill Rate)
This article covers meaning, importance & example of LIFR (Line Item Fill Rate) from operations perspective.
What is LIFR (Line Item Fill Rate)?
LIFR or line item fill rate is a measurement concept in supply chain where in the amount of orders are measured based on different product lines. LIFR is a measure of the ratio of the actual orders filled in terms of parallel arrangements or lines. Line item fill rate is calculated for different product items or lines for a limited time period.
Importance of Line Item Fill Rate
There are several benefits for a company in understanding their LIFR for their business.
1. A constant focus on measuring LIFR can improve business efficiency.
2. A supply chain organization which analyzes its fill rates regularly can improve customer relations.
3. It provides proper insights on business operations and can be used to optimize based on demand and seasonality.
Formula for Line Item Fill Rate
The formula can be simplified as below.
Line item fill rate = (Number of lines where order is filled) / (Total number of lines)
Where lines can be different product lines or deliveries.
Example of LIFR
Suppose there are 5 lines which require 100 units each.
But only 3 lines have been provided with the full order, and then only 3 lines have said to have met the order.
Even if 99 units are received at the other two lines respectively they will not be considered as a fill.
In this case, LIFR = (3/5)* 100 = 60 %
Hence, this concludes the definition of LIFR (Line Item Fill Rate) along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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