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Stockout

Running out of an item so demand cannot be fulfilled.

Area
Inventory
Also known as
out of stock
In this area
44 terms of 257

A stockout occurs when an item is unavailable to sell or use. The cost is both immediate (lost sales) and longer term (customers switching to alternatives).

Stockout rate is a key service-level metric; reducing it is the main purpose of safety stock and reorder points.

Related terms

Safety Stock

A buffer of extra inventory held to protect against demand or supply variability.

Reorder Point

ROP

The stock level that triggers a new purchase or production order.

Backorder

An order accepted for an item that is currently out of stock.

More in Inventory

ABC Analysis Asset Tracking Available to Promise (ATP) Barcode Carrying Cost Consignment Inventory Cycle Count Cycle Stock

Stockout is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.

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