Skip to content
Dictionary / Stockout


Last updated August 15, 2023

What does stockouts mean?

A stockout refers to a situation in which a company runs out of stock of a particular product and is unable to fulfill customer demand for that said product.

When does a stockout occur?

A stockout can occur due to various reasons, including:

How to prevent stockouts?

Companies can use various strategies to prevent stockouts, including:

  • Improve demand forecasting
  • Maintain adequate
  • Increase inventory turnover

What is the difference between stockout and safety stock?

A stockout is a situation where the company has insufficient inventory to meet customer demand, while safety stock is a quantity of inventory that companies hold to prevent stockouts. As a result, safety stock is a proactive measure that companies take to prevent stockouts, while a stockout is a negative consequence that occurs when a company fails to maintain sufficient inventory levels to meet customer demand.