A stockout occurs when inventory is depleted to zero, and customer demand cannot be fulfilled immediately. Stockouts lead to lost sales, backorders, and damage to customer satisfaction and brand loyalty. In supply chains, frequent stockouts indicate weaknesses in forecasting, replenishment, or safety stock policies.Minimizing stockouts involves accurate demand forecasting, efficient replenishment systems, and appropriate safety stock levels. Advanced analytics and real-time inventory tracking help predict and prevent potential stockouts, optimizing service levels and inventory investment.
