The correct answer is stockout cost.
In the context of inventory costs, stockout costs can reflect lost sales for external customers or costs linked with interruptions to assembly lines for many internal customers.
What is the stockout cost?
- When there is a shortage of inventory some of the income is lost. That lost income is called stockout cost.
- It is very difficult to determine stockout costs in a business.
- These costs can be avoided by maintaining a highly detailed record of the inventory.
- It also refers to the loss of income and the loss of customers.
- Stockouts can be caused by a variety of reasons. These reasons include misjudging the demand of products, late delivery of products by the supplier etc…
- Stockouts can be reduced by using a consignment inventory, using a JIT system, and using accurate demand forecasting.
To learn more about stockout costs visit: https://brainly.com/question/14751936?
#SPJ4
