Development and Tests of Two Stockout Cost Models

International Journal of Physical Distribution

ISSN: 0020-7527

Publication date: 1 January 1975


In calculations of inventory control costs, the effects of stockouts are often assumed or avoided because of the lack of accounting data for reasonable measurements. The authors describe the development of stockout cost models incorporating decisions made by consumers in an actual retail situation. Equations for calculating the revenue differences are based on the consumer decision alternatives. The results of a consumer survey, combined with retail prices for the product lines in question, enable the financial effects of stockouts to be calculated.


Walter, C.K. and La Londe, B.J. (1975), "Development and Tests of Two Stockout Cost Models", International Journal of Physical Distribution, Vol. 5 No. 3, pp. 121-132.

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Copyright © 1975, MCB UP Limited

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