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inventory
(redirected from Stockout)

   Also found in: Medical, Legal, Financial, Wikipedia, Hutchinson 0.06 sec.

inventory

In business, any item of property held in stock by a firm, including finished goods held for sale, goods in the process of production, raw materials, and items that will be consumed in the process of producing salable goods. Inventories appear on a company's balance sheet as assets. Inventory turnover, which indicates the rate at which goods are converted into cash, is a key factor in appraising a firm's financial condition. For financial statements, inventories may be priced either at cost or at market value.


inventory [′in·vən‚tȯr·ē]
(engineering)
The amount of plastic in the heating cylinder or barrel in injection molding or extrusion.


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In most of the practical cases, it is very difficult to assign numerical values to the stockout costs, therefore the management alternatively would resort to either the third or the fourth approach.
They are recognizing that occasional stockouts will occur, or some problem in performance might occur in some unessential supply chains.
To avoid stockouts, oversupply and safety stock expense, it was critical for the company to predict demand and effectively manage the increased procurement and distribution complexity.
 
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