Stockout Cost Planner methodology

shortUnits = max(0, expected demand − available stock − confirmed inbound)

lostUnits = short units × lost-sales share

deferredUnits = short units − lost units

lostContribution = lost units × contribution per unit

expediteCost = short units × expedite cost per short unit

totalStockoutCost = lost contribution + expedite cost

breakEvenExpediteCostPerShortUnit = lost-sales share × contribution per unit

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

• All values must be finite and inside the visible validation boundaries.
• Rates are entered as percentages and calculations retain decimal precision.
• Money and operational records use one consistent period and basis.

Expected demand units minimum

expectedDemandUnits ≥ 0 whole product units — A lower value is rejected before calculation.

Expected demand units maximum

expectedDemandUnits ≤ 100,000,000 whole product units — A higher value is rejected before calculation.

Available stock units minimum

availableStockUnits ≥ 0 whole product units — A lower value is rejected before calculation.

Available stock units maximum

availableStockUnits ≤ 100,000,000 whole product units — A higher value is rejected before calculation.

Confirmed inbound units minimum

confirmedInboundUnits ≥ 0 whole product units — A lower value is rejected before calculation.

Confirmed inbound units maximum

confirmedInboundUnits ≤ 100,000,000 whole product units — A higher value is rejected before calculation.

Lost-sales share minimum

lostSalesShare ≥ 0 proportion of shortage units expected to become lost sales — A lower value is rejected before calculation.

Lost-sales share maximum

lostSalesShare ≤ 1 proportion of shortage units expected to become lost sales — A higher value is rejected before calculation.

Contribution per unit minimum

contributionPerUnit ≥ 0 currency units/product unit, ex tax — A lower value is rejected before calculation.

Contribution per unit maximum

contributionPerUnit ≤ 10,000,000 currency units/product unit, ex tax — A higher value is rejected before calculation.

Expedite cost per short unit minimum

expediteCostPerShortUnit ≥ 0 currency units/product unit, ex tax — A lower value is rejected before calculation.

Expedite cost per short unit maximum

expediteCostPerShortUnit ≤ 10,000,000 currency units/product unit, ex tax — A higher value is rejected before calculation.

• Demand, lead times, costs, tax and targets are supplied by the user.
• No jurisdiction, supplier service level, industry benchmark or forecast is embedded.
• The engine retains full precision and display formatting never feeds back into calculation.

This planner has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

• Results depend on the quality and timing alignment of entered records.
• The model does not replace inventory, accounting, tax, legal or financial advice.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this planner. Commercial inputs remain user-supplied because they vary by business and contract.

1. 2026-07-31: Initial public release of the planner and methodology after pre-launch calculation, content, source and interaction review.