Stockout costs

Stockout costs,

Definition of Stockout costs:

  1. Economic consequences of not being able to meet an internal or external demand from the current inventory. Such costs consist of internal costs (delays, labor time wastage, lost production, etc.) and external costs (loss of profit from lost sales, and loss of future profit due to loss of goodwill). Also called shortages costs.

Meaning of Stockout costs & Stockout costs Definition