Measure days of cover
Compare available inventory with expected daily demand.
GUIDE
How to reduce stockouts without blindly increasing inventory.
Stockouts are usually a timing and uncertainty problem, not simply a sign that every SKU needs more stock.
Include supplier lead time
A SKU becomes risky when coverage is too short for replenishment to arrive.
Use safety stock selectively
Buffers should reflect variability and service targets rather than a fixed percentage.
Prioritize business exposure
Work first on shortages with meaningful revenue or customer impact.
Practical decision rule
Compare inventory position with expected demand during lead time plus safety stock. That threshold is the reorder point. If supply cannot arrive before available coverage is consumed, the item needs intervention.