A term used in product manufacturing or distribution to describe an inventory shortfall arising from unexpected demand, ineffective inventory management, production delays or replenishment disruptions. Companies that experience stockouts may experience loss of future business due to customer dissatisfaction.

Use stockout in a sentence

You may want to try and figure out a way to improve your process if you keep finding yourself in a state of stockout.

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Apple has always had popular products, such as the iPhone, but they never anticipated the stockout issues they'd run into when they first produced and released the gold version of the device.

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The new cold and flu medicine was so popular in its first month that a stockout occured, and the product was unavailable until manufacturing was able to create a new supply.

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