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Explanation - Stocking Out

Stock Outs

When a company faces demand which is greater than expected the company's inventories may become depleted. This may result in the company being unable to fill all orders for its products on time. When this happens, the company is said to "stock- out". Stocking out can lead to customer dissatisfaction, and may lose long term business as customers buy products from other vendors.

See Also

Explanation - Raw Materials Inventory

Explanation - Raw Materials