Stockout Costs in Distribution Systems for Spare Parts

Abstract

Details an empirical study of the measurement of stockout costs in a distribution system and examines the incidence of stockouts in the supply of spare parts to the motor trade. Comprehensive studies were conducted in three major car workshops in Sweden and cost data collected from a variety of sources, including structured observation, quasi‐experiments, interviews and secondary data from internal information systems. On the basis of this research, a typology of stockout cost situations has been constructed and central concepts and measurement models developed. Results reveal that stockout costs are measurable in the system under review; information about stockout costs can have a significant impact on managerial decision making.

Citation

Jensen, A. (1992), "Stockout Costs in Distribution Systems for Spare Parts", International Journal of Physical Distribution & Logistics Management, Vol. 22 No. 1, pp. 15-26. https://doi.org/10.1108/09600039210010342