Reducing the risk of OOS or Out-of-Stock in retail industry


Retail Out of Stock Reduction

The objective of this question is to learn Out-of-Stock (OOS) reduction methods. This assignment was selected for its applicability to management in retail and grocery store industries.  

1. What are the total costs of OOS, beyond lost sales?
2. Compare the three basic approaches to the measurement of OOS.
3. How can OOS measurement be directly linked to root causes?
4. Where do most OOS sales losses occur?
5. Describe four causes of OOS.
6. Identify the impact on overall OOS levels for each of the four causes that you listed in #5.
7. Describe a flexible approach to reduce OOS that retailers can easily adopt.
8. Describe an OOS problem that you have observed as an employee (or customer).
9. If you were a manager, how would you analyze the problem?
10. What would you recommend to corporate management to resolve the issue (in #8)?


The question belongs to Operations Management and it is about Out-of-Stock or OOS. Out-of-Stock is a regularly occurring phenomenon in most retail outlets and it should be reduced as much as possible as it can reduce customer base for the retailer. Ways of reducing OOS have been discussed in the solution

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