If a customer order arrives when product is not available

Question

Quizplus · Accepted Answer

When a customer order arrives and the product is not available, it results in a stockout. This means that the retailer does not have the inventory on hand to meet the customer's order, and the customer will have to wait or look elsewhere for the product. None of the other options listed are appropriate for this scenario. A sale does not occur if the customer cannot receive the product they wanted to purchase, and allocating product to the customer or filling the order from safety inventory do not make sense if the retailer does not have the item in stock to begin with.

If a Customer Order Arrives When Product Is Not Available