Question

When should inventory be ordered to avoid from stock shortage? Discuss with practical example​

Answer 1

Explanation:

To give you a better idea of how you can accomplish this, below are 5 common causes of stockouts and pointers on how you can sidestep them:

1. Inaccurate data

It’s very easy to run into inaccuracies when dealing with inventory. Between shipment variances, misplaced products, returns, and stolen goods, retailers find that the inventory numbers they have on paper (or on screen) often don’t match what they have in their stores.

Such discrepancies can lead to merchants mistakenly thinking that they have an item in stock when they don’t, so they end up re-ordering the wrong products or quantities.