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give your opinion when does two types of stockouts happen in inventory

give your opinion when does two types of stockouts happen in inventory

Business   Operations-Management   
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Answer #1

Stockouts happen when there wide deviations in item counts from one inventory management system to another. This leads to mismanagement amd miscalculation which caises inaccuracies and redundancies.

Another major reason is inadequate forecasting methods which leads to demand supply mismatch and hence stockouts. Demand supply mismatch caises firms to underestimate demand and production gets lower causing stockouts.

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