outofstockpercentage

Outofstockpercentage is a metric used in inventory management and retail analytics to quantify product availability. It can refer to either the instantaneous stockout rate—the proportion of SKUs that are out of stock at a specific moment—or the stockout exposure over a period, the proportion of SKUs that experienced at least one stockout during a defined timeframe. The measure is often applied across a catalog, location, or sales channel to monitor assortment availability.

Calculation can take two common forms. Instantaneous: outofstockpercentage = (number of SKUs with stock level equal to zero / total number of SKUs) × 100. Period-based: outofstockpercentage over a period = (number of SKUs with at least one stockout during the period / total number of SKUs) × 100. Accurate computation requires reliable, timely inventory data and consistent definitions for what constitutes a stockout (zero on-hand vs. backordered).

Interpretation and use: The metric helps identify gaps in availability, prioritize replenishment, and compare performance across suppliers or locations. It supports setting service level targets and guiding merchandising and procurement decisions. It is most informative when used alongside related metrics such as fill rate, service level, and stockout duration.

Limitations: Outofstockpercentage does not convey stockout severity (how long or how deep the shortage lasted) and may be influenced by backorders or promotional stockouts. It can be distorted by product mix, seasonality, or data latency. For meaningful insights, it should be computed per location or channel and interpreted in the context of demand, lead times, and inventory policy.

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