Rate of Stockouts Due to Forecast Inaccuracy
Percentage
Measures the number of times stockouts occurred due to errors in demand forecasting. Reducing this rate ensures better customer service and sales.
Formula
(Number of Stockouts Due to Forecast Inaccuracy / Total Number of Stockouts) x 100
Example
If out of 10 stockouts, 4 occurred due to forecast inaccuracy, the rate is 40%.