The differential impact of product complexity, inventory level, and configuration capacity on unit and order fill rate performance

Abstract This paper examines the simultaneous impact of configuration capacity, inventory level, and complexity on service performance as measured by unit and order fill rates in a configure‐to‐order environment. Demand skew is treated as a control variable. A simulation model based on data from a leading electronics manufacturer is used to test the hypotheses and identify the impact. Results suggest that there are differential direct and interactive effects of examined variables on unit and order fill rates.