What is the difference between a stockout and a shortage?

A stockout is a localised, time-bounded event: a specific SKU is unavailable in a specific location for a specific period. A shortage is a broader, often supply-side condition where the market itself cannot meet aggregate demand for a category. Most planning teams can prevent stockouts through better buffers and forecasts. Shortages typically require sourcing-strategy changes such as multi-sourcing, regional alternatives, or redesign that go beyond the planning function. The distinction matters because the two problems have different owners: a stockout is usually a planning decision arriving too late, while a shortage is a procurement and strategy question.