Last updated August 15, 2023
What does stockouts mean?
A stockout refers to a situation in which a company runs out of stock of a particular product and is unable to fulfill customer demand for that said product.
When does a stockout occur?
A stockout can occur due to various reasons, including:
How to prevent stockouts?
Companies can use various strategies to prevent stockouts, including:
What is the difference between stockout and safety stock?
A stockout is a situation where the company has insufficient inventory to meet customer demand, while safety stock is a quantity of inventory that companies hold to prevent stockouts. As a result, safety stock is a proactive measure that companies take to prevent stockouts, while a stockout is a negative consequence that occurs when a company fails to maintain sufficient inventory levels to meet customer demand.