When does a 'stockout' occur?
A)When brokers run out of shares of stock to sell of a particular company.
B)When a disruption due to a power outage, etc., causes a temporary production shutdown.
C)When a company holds too many goods in inventories.
D)When a firm loses sales because goods consumers want are not available.

Question

Quizplus · Accepted Answer

A 'stockout' occurs when a firm loses sales because goods consumers want are not available, leading to a shortage of supply. This may occur due to a variety of reasons such as unexpected demand, production issues or inadequate inventory management.

When Does a 'Stockout' Occur