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:
Hierarchy
| ID | Name | Level | x | | RS2 | Order Fill Rate | 1 | RS2 |
| RS21 | Stock Out Ratio | 2 | RS21 |
Stock Out Ratio Order Fill Rate 22100 2 {{{keywords}}} {{{description}}}
