Rethinking Retail Inventory: Why Frequency Metrics Mask the True Cost of Stockouts
Executive Overview For decades, retail management teams have relied on a comforting, clean metric to gauge supply chain health: the stockout rate. Decisive, easy to calculate, and universally understood, this Key Performance Indicator (KPI) offers an executive-friendly snapshot of product availability. A low percentage implies operational efficiency, while a spike triggers immediate warehouse and logistics…
