Stockout
Also called: out of stock, stock-out
What is Stockout?
A stockout is a demand you cannot meet because the item is not on the shelf. The immediate cost is the lost sale; the larger cost is the customer who buys it elsewhere and stays there.
Why Stockout matters
Stockouts are invisible in the sales report — a sale that never happened leaves no record. They are only measurable if someone records the request or the shelf gap.
Stockout formula
Stockout rate % = SKUs out of stock ÷ Total active SKUs × 100
Measured on a shelf check, since the system rarely shows it directly.
How Stockout works in practice
Log requests you could not fulfil, even informally, and review them against reorder points. Repeated stockouts on the same SKU mean the reorder point or the safety stock is wrong.
Frequently asked questions
Approximate it with average daily sales of the item times the days it was unavailable.