Stock-out costs may be higher in a buyer's market compared to a seller's market.

Question

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In a buyer's market, there are more options for buyers to choose from, which means if a product is out of stock, they may simply switch to a competitor's product. This can result in lost sales and potential customers switching to a different brand. In a seller's market, where there is high demand and limited supply, stock-out costs may be lower as customers may be willing to wait or pay a premium to get the product they want.

Stock-Out Costs May Be Higher in a Buyer's Market Compared