0 a situation in which there are no goods of a particular kind available for sale:
1 a situation in which particular goods are no longer available for sale:
As a consequences of these stockouts, the company was forced to bring some of its logistics function back in-house.
If the cost of a stock-out rises, it will pay to stockpile additional inventory.
There is no chance of a midyear stock-out in any of the major agricultural commodity markets.
Again, the results for this model are distinct from those of the stockout avoidance models below in that they involve a calibrated average inventory-to-sales ratio.
To alleviate this problem, we now generalize the basic model, introducing idiosyncratic shocks across firms, in order to strengthen the stockout avoidance motive.
In our equilibrium model, stockout is associated with inventories being reduced to zero. 15.
Thus, we are led to consider a multisector generalization of the model that adds idiosyncratic shocks to strengthen the stockout avoidance motive.
