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Cost of Stockouts

Purpose -

Assesses the revenue loss caused by insufficient inventory.

Operational Definition -

(Lost Sales Due to Stockouts / Total Sales) * 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://www.onestream.com/blog/intelligent-demand-planning-5-kpis-to-drive-performance/

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