When a company transfers part of the materials in stock from one distribution center to another,this scenario is known as stock-out.

Question

Quizplus · Accepted Answer

A stock-out occurs when a company runs out of a particular item or product and is unable to meet customer demand. Transferring materials from one distribution center to another is known as a transfer or redistribution of inventory, and does not necessarily indicate a stock-out situation.

When a Company Transfers Part of the Materials in Stock