The stockout risk report: ranking what to reorder by revenue at risk

Most inventory reports tell you what already happened. The stockout risk report tells you what is about to. It is the one worth looking at every morning, because every item on it is a decision with a deadline.

Key takeaways

• A product is at risk when it will run out before replenishment can arrive.
• Rank by revenue at risk, not by days left alone.
• Use the order-by date, not the stockout date, as the deadline.
• Close the loop: from the report, draft purchase orders the same day.

The logic

For each product, the report compares:

• Days of cover: on hand plus on order, divided by forecast daily demand.
• Lead time: from the supplier's measured delivery history where there is one.
• The gap: if cover is shorter than lead time plus a safety buffer, the product will run out before a new order can land.

Stokrio lists products projected to run out before replenishment can arrive, with the revenue at risk and the order-by date.

Why revenue at risk

Two products both have eight days of cover. One sells ten units a week at a low price; the other is a bestseller. Ranking by days alone treats them equally. Ranking by the revenue you expect to lose between the stockout date and the next possible arrival sends your attention to the one that matters.

Order-by date

The stockout date is not your deadline. If the lead time is 21 days and you run out in 30, you have nine days to place the order. The order-by date is that deadline. Working from it prevents the classic mistake of acting at the stockout date, which is already too late.

From report to purchase order

The report is only useful if it ends in orders. In Stokrio the same products appear in replenishment grouped by supplier with suggested quantities rounded to case packs and minimums, and you can draft purchase orders in one click. Nothing is sent until you decide.

Make it a habit

See also stockouts and lost sales and the full report library.