A stockout, or out-of-stock (OOS) event is an event that causes inventory

Inventory

Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...

 to be exhausted. Reorder point

Reorder point

The reorder point is the level of inventory when an order should be made with suppliers to bring the inventory up by the Economic order quantity .-Continuous Review System:...

s are often specified in such a way as to reduce the likelihood of stockouts during replenishment

Replenishment

- Military :* Replenishment oiler* Underway replenishment, a method of transfer between naval ships* Vertical replenishment, another method of transferring supplies- Photography :...

, due to the vendor's lead time

Lead time

A lead time is the latency between the initiation and execution of a process. For example, the lead time between the placement of an order and delivery of a new car from a manufacturer may be anywhere from 2 weeks to 6 months...

, which cause interruptions to sales or deliveries.

Stockouts are effectively the opposite of overstock

Excess inventory

Overstock, Excessive stock, or excess inventory, is the result of poor management of stock demand or of material flow in process management. Excessive stock is also associated with loss of revenue owing to additional capital bound with the purchase or simply storage space taken...

s, where too much inventory is retained.

See also

• Backorder
• Cannibalization
• DMSMS
  DMSMS
  Diminishing manufacturing sources and material shortages is defined as: "The loss or impending loss of manufacturers of items or suppliers of items or raw materials." DMSMS and obsolescence are terms that are often used interchangeably...
  
  
• Just-in-time
• Safety stock
  Safety stock
  Safety stock is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand. Adequate safety stock levels permit business operations to proceed according to their plans...