Supply Chain & Procurement worked example

Stockout Cost Calculator at 92% share of demand truly lost: a worked example

This scenario runs the stockout cost calculator calculation on the strong side: 92% share of demand truly lost, with every other input held at its documented default. Use it when stockout cost in supply chain and procurement is being put through a supply chain and procurement weighted-cost review.

The inputs for this scenario

  • Lost sales units during stockout: 100 units (unchanged)
  • Gross margin per lost unit: 45 $ / unit (unchanged)
  • Share of demand truly lost (not backordered): 92 % (raised for this scenario; the documented default is 80)
  • Fixed expediting and goodwill cost: 250 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Weighted cost = quantity × rate × capture factor + fixed adjustment) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,390 $ for total stockout cost, the number this scenario is built around.
  • At this operating point the engine returns 43.9 $ / piece for stockout cost per unit.
  • At this operating point the engine returns 4,140 $ for variable stockout cost.
  • At this operating point the engine returns 250 $ for fixed stockout cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where share of demand truly lost sits at 80% and the headline result is 3,850 $, this scenario comes in 14.03% above the baseline at 4,390 $.
  • Use it after a stockout to size the damage, or before one to build the business case for safety stock or expedited freight. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total stockout cost: 4,390 $ (headline result)
  • Stockout cost per unit: 43.9 $ / piece
  • Variable stockout cost: 4,140 $
  • Fixed stockout cost adder: 250 $

Run it with your numbers

  • Every input above is editable in the live Stockout Cost Calculator calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.