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Lost Revenue from Stockouts

Purpose -

Measures revenue impact caused by unavailability of goods due to supplier failures.

Operational Definition -

(Total 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://kissflow.com/procurement/procurement-kpis/

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