Draft reference — content review pending
Stockout Rate
The percentage of eligible SKU-location observations in which the item was unavailable for sale during the observation.
Business question
How often are eligible products unavailable at the locations and times being observed?
Formula
Stockout rate = unavailable SKU-location observations ÷ eligible SKU-location observations × 100.
Calculation notes
Define what counts as an observation, the active assortment, location scope, and data-collection frequency. Keep the observation rule stable before comparing periods.
Edge-case guidance
Separate stockout-event rate from lost-sales estimates. Do not imply that unavailable demand is known unless there is supporting evidence. Document how discontinued, intentionally unavailable, substituted, and temporarily hidden items are treated.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Unavailable SKU-location observationsEligible observations where the product was unavailable under the agreed availability rule. | Number | Required | Ecommerce platform · POS · Excel · Manual records |
| Eligible SKU-location observationsAll observations included for the active assortment, location scope, and collection frequency. | Number | Required | Ecommerce platform · POS · Excel · Manual records |
Interpretation
Use the measure to monitor product availability across the defined assortment and location scope. It is an observation-based operational measure, not a direct estimate of lost demand.
Caution
A low observation-based stockout rate does not prove that all demand was served or that replenishment is efficient. Coverage and observation quality determine what the measure can show.
Implementation recommendation
Define the active assortment and observation cadence with the inventory owner, then segment results by product group and location without presenting lost sales as known fact.
Target guidance
Set the first target from comparable historical performance for stockout rate, then adjust it for the business model, strategy, capacity, seasonality, data quality, and customer commitments. Review the direction with the accountable owner and consider this trade-off: reducing stockouts can require more working capital or slower inventory turnover, so review availability with cash and margin measures.