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Basic Technical In the Industry Vocabulary Test

Stockout

A situation in which demand for a product exceeds the available inventory, resulting in an inability to fulfill orders.

Full Definition

A stockout occurs when a warehouse or retailer has zero inventory of a specific SKU, leading to unfulfilled customer orders, lost sales, or production halts. Stockouts are a key metric in supply chain performance and are closely monitored alongside fill rate and service level. The term is written as one unhyphenated word. Editors should distinguish it from 'backorder' (an order placed for out-of-stock goods to be fulfilled later) and 'overstock' (excess inventory). In British English, 'stock-out' (hyphenated) occasionally appears but 'stockout' is now preferred in most industry publications.

Usage

Usage note: One word, no hyphen. Not interchangeable with 'backorder'. 'Out-of-stock' is acceptable as an adjective but 'stockout' is preferred as a noun.

In Context

  • "The stockout of critical components halted the assembly line for three days." — Manufacturing supply chain report
  • "Editors should prefer the single-word form 'stockout' over the hyphenated 'stock-out' in current industry writing." — Style guide note

Also known as

out-of-stock inventory depletion

Contrasted with

overstock surplus inventory safety stock

Don't confuse with

backorder overstock dead stock

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Reuters BBC Oxford University Press Penguin Random House Springer Microsoft Suncor Energy United Nations Fisher Investments IBM The Home Depot KODAK CHEVRON