Stock Out Probability Calculator

Stock Out Probability Calculator calculator can be used to estimate the probability of stock out based on historical demand and supply data.

Input Parameters

Calculation Results

Stock Out Probability

0%

Where:
- Average Monthly Demand: Average number of units demanded per month
- Standard Deviation of Demand: Measure of demand variability
- Lead Time: Time taken for the order to arrive
- Order Quantity: Number of units ordered

Stock Out Probability Calculator Calculator Usage Guide

Learn how to use the Stock Out Probability Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the average monthly demand in the first input field.
  2. Enter the standard deviation of demand in the second input field.
  3. Enter the lead time in months in the third input field.
  4. Enter the order quantity in the fourth input field.
  5. Click the "Calculate" button to compute the stock out probability.
  6. The result will be displayed as a percentage.

Understanding the Formula

The stock out probability is calculated using the Z-score formula for the normal distribution:

Z = (Average Demand * Lead Time + Standard Deviation * sqrt(Lead Time)) / Order Quantity

Where Z is then used to find the probability of stock out using the error function (erf).