Stock-outs are commonly reported as the biggest single concern to businesses that supply customers with stock. Every time a customer requests to buy a product that’s stocked-out, there’s a good chance they’ll end up unhappy due to the stocking issue. We use the following formula to calculate the Risk of Stock-out: VAR[π(EOQ)] = E[π(EOQ)2] - (E[π(EOQ)])2 Where: VAR[π(EOQ)] = Q order quantity Q* (EOQ) optimal order quantity D annual demand quantity K fixed cost per order, setup cost h annual holding cost per unit, also known as If you are at higher risk of getting very sick from COVID-19, you should: Stock up on supplies Take everyday precautions to keep space between yourself and others When you go out in public, keep away from others who are sick, limit close contact and wash your hands often.