Question

What Can Be The Consequences Of Under Stocking?

Answer 1

Answer:

Explanation:

The following can be the consequences of under stocking:

- Production process cannot be operated efficiently, resulting delivery schedules.

- Firm may end up paying an idle labour force due to the production hold ups.

- Organisation may loose its important customers, due to the delay in meeting customers’ orders.

- Unfavourable prices and quality Increased administration costs.

- Due to under stocking it will not be easy for the organisation to meet the unexpected demands of customers.