What is the definition of "fill rate" in inventory performance measures?

Fill rate is defined as the measurement of stock in units or financial value, and it quantifies the ability of a business to fulfill customer orders from available inventory. This performance metric is crucial in supply chain management as it reflects how well inventory levels meet demand. A higher fill rate indicates that a company can satisfy a larger proportion of customer orders without experiencing stockouts, which enhances customer satisfaction and loyalty.

In this context, measuring stock in units or financial value provides insight into how effectively a company's inventory is being managed and how it supports sales. By focusing on the available stock relative to customer demand, businesses can gauge their operational efficiency and identify areas for improvement in inventory management practices.

Other definitions related to inventory performance measures, such as those involving obsolescence dates or the ratio of average inventory to sales, do not capture the essence of fill rate, which is centered around order fulfillment and the availability of products to customers. Therefore, option C succinctly embodies the core concept of fill rate as it applies to discerning inventory performance.