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Guest (Querist)
13 March 2012 What is stock out?
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CA Dileep Surya Kumar

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CA Dileep Surya Kumar (Expert)
14 March 2012 It is the situation where sale order for the stock is more than the stock in hand to fulfill it.
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Guest (Querist)
14 March 2012 how to calculate stock out cost and safety stock levels?
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CA Dileep Surya Kumar

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CA Dileep Surya Kumar (Expert)
14 March 2012 stock out cost= No.of days out of stock * Avg no.of units can be sold per day * Profit per Unit


Safety Stock = (Annual Demand / 365)*(Maximum lead time - Average lead time)

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