What is Stock-out?
A stock-out is when an item a customer wants is not available because the shop has sold all of it.
Updated
Meaning
English
A stock-out is when an item a customer wants is not available because the shop has sold all of it.
Roman Urdu
Stock-out ka matlab hai jab gahak ko jo cheez chahiye woh dukaan me khatam ho chuki ho.
Also called out of stock, stockout.
Example
A pharmacy runs out of a common cough syrup on a Friday. Customers go to the next shop and some do not come back.
The cost of running out
A stock-out loses the sale and sometimes the customer. It usually comes from a late reorder or a wrong estimate of sales. Set a reorder level for fast sellers, keep a little safety stock and review the low-stock list daily. Keep a note of items customers ask for that you do not have. See safety stock and reorder level.
In Nafaa
Nafaa lists low-stock items and what to reorder, and some industry setups track customer requests for out-of-stock items. See low-stock alerts.
Related terms
- Reorder Level
A reorder level is the stock quantity at which a new order should be placed, so stock arrives before the shelf runs empty.
- Safety Stock
Safety stock is the extra quantity of an item kept in hand so the shop does not run out if sales are higher than expected or a delivery is late.
- Backorder
A backorder is a customer order accepted for an item that is out of stock now and will be delivered when new stock arrives.