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RS21

Stock Out Ratio

Stock Out Ratio measures the inability to deliver products from stock within the advertised or contractually agreed service level window due to insufficient inventory. Generally this metrics is applied to measure the effectiveness of inventory replenishment processes in retail and distribution networks.

Calculation

Stock Out Ratio
=
Lost Sales   × 100 %
Revenue + Lost Sales

where

  • Lost Sales = Total value of lost sales caused by lack of product ('Stock Out')
  • Revenue = Total supply chain revenue

Unit of measure: %

Community Importance Rating:
2.00
(one vote)

Hierarchy

IDNameLevelx
RS2Order Fill Rate1RS2
RS21Stock Out Ratio2RS21

Process(es)

IDNameLevelx
P4Plan Deliver2P4
P403Calculate Delivery Plan3P403
P404Publish Distribution Plan3P404
P405Analyze Delivery Plan Deviations3P405
Stock Out Ratio Order Fill Rate 22100 2 {{{keywords}}} {{{description}}}