Salespeople at Widget Ltd. complain that they lose sales bonuses when the production department is out of stock of a particular item. This sometimes causes customers to buy elsewhere rather than wait for the next production run. Meanwhile, production employees complain that salespeople don't appreciate the need to minimize inventory costs, for which production staffs are rewarded. This is mainly an example of conflict due to:

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The conflict between the sales and production departments is due to goal incompatibility where the sales team wants to maximize sales and earn bonuses, while the production team wants to minimize inventory costs. These goals are not aligned, leading to conflict.