Supply Chain & Procurement worked example

Stockout Cost Calculator at 58% share of demand truly lost: a worked example

This worked example runs the stockout cost calculator numbers for a tougher week than the baseline: 58% share of demand truly lost instead of the typical 80%. Estimate stockout cost from lost units, contribution margin, and expedite cost.

The inputs for this scenario

  • Lost sales units during stockout: 100 units (held at the documented default)
  • Gross margin per lost unit: 45 $ / unit (held at the documented default)
  • Share of demand truly lost (not backordered): 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed expediting and goodwill cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Weighted cost = quantity × rate × capture factor + fixed adjustment.
  • Total stockout cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Stockout cost per unit works out to 28.6 $ / piece at these inputs.
  • Variable stockout cost works out to 2,610 $ at these inputs.
  • Fixed stockout cost adder works out to 250 $ at these inputs.

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 25.71% below the baseline at 2,860 $.
  • Use it after a stockout to size the damage, or before one to build the business case for safety stock or expedited freight. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total stockout cost: 2,860 $ (headline result)
  • Stockout cost per unit: 28.6 $ / piece
  • Variable stockout cost: 2,610 $
  • Fixed stockout cost adder: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Stockout Cost Calculator calculator, set share of demand truly lost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.