A situation in which a firm runs out of inventory is called a(n):
A)inventory shortage.
B)fire sale.
C)bankruptcy.
D)stock-out.
E)inventory loss.

Question

Quizplus · Accepted Answer

A stock-out is the situation in which a firm runs out of inventory. It occurs when demand for a product exceeds the inventory supply. This can be a problem for businesses as it may lead to lost sales, dissatisfied customers, and damage to the firm's reputation.

A Situation in Which a Firm Runs Out of Inventory