Stockout Cost

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Definitions
Reorder Point
Reorder Point Inventory Management Stockout Cost Just-in-Time Inventory Control Supply Chain Management Business Operations Inventory Control
The minimum level of inventory at which a new order must be placed, to prevent stockouts and ensure continuous business operations.
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Definitions
Stockout Cost
Stockout Cost Inventory Management Lost Sales Revenue Business Operations Supply Chain Management Customer Satisfaction Order Fulfillment Operational Efficiency
Stockout cost refers to the costs incurred by a firm when its current inventory is exhausted for one or more items. Lost sales revenue is a primary consequence when the firm is unable to meet current orders because of a stockout condition.
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