What are costs associated with having too little inventory in stock - ProProfs Discuss
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What are costs associated with having too little inventory in stock called?



Asked by Millerthomas, Last updated: Sep 12, 2021

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O. Miller

O. Miller

Have 3 years of Experience in journalism.

O. Miller
O. Miller, Content Optimization Executive, Studied Journalism and Psychology, Austin,Texas

Answered May 10, 2019

There are instances when people forget that they need to have the right stocks so that they can continue selling. When this happens, they may get orders, but they do not have shares anymore. This might prompt companies to get a rushed order from their suppliers. This will cost more as compared to getting their regular order.

There are also instances when this may happen because the shelves were not immediately stocked. People may look, for one thing, see that it is not there and check elsewhere. This will make the company lose potential sales. It is essential for business owners to note these things.

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millerthomas2008

millerthomas

millerthomas2008
Millerthomas

Answered Sep 22, 2017

Stock-out costs    
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