Trade · 6 pages · 12 min

How a stockout and a glut are both failures

A stockout means none is on hand when needed, and a glut means far more is on hand than can be sold or used.

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From the opening

A stockout means a buyer or a process arrives and the good is not there to meet that need. A glut means the good is on hand in a quantity well beyond what buyers or the process will take, so units sit, get marked down, or spoil. The opening covers none on hand misses the need, too many units sit or markdown, and both are mismatches of quantity.

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Inside

None on hand misses the need
Too many units sit or markdown
Both are mismatches of quantity
Full shelves can still be a failure
Where the idea stops applying
A distinction worth keeping

Sources

Stockout and unmet demand
Excess inventory and markdowns

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How a stockout and a glut are both failures

From the opening

Inside

Sources

Also on the desk