Materials
Stockout
When inventory is insufficient to meet customer demand.
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Updated 2025-10-01
Definition
Stockouts result in missed sales, customer dissatisfaction, and potential disruption of production or fulfillment schedules.
Overview
Overview
Preventing stockouts requires accurate demand forecasting, safety stock, and timely replenishment.
Causes
- Unexpected demand spikes
- Supplier delays
- Poor inventory tracking
Example
An online retailer experiences a stockout of popular shoes during a flash sale, resulting in lost sales and unhappy customers.
Tags
#Stockout#Inventory#Materials#Warehouse#Demand Planning
Related Terms
Safety Stock
Inventory Turnover
Reorder Point Formula (ROP Formula)
