understocking

Example:The store is facing an understocking issue with winter coats during the cold season.

Definition:A problem of having insufficient stock or products, leading to difficulties in meeting customer demand.

Example:The company adopted a new understocking strategy to reduce inventory carrying costs.

Definition:A business plan to ensure that inventory levels remain low to minimize holding costs, but avoid understocking which can lead to lost sales.

Example:The restaurant manager addressed the understocking problem by implementing a just-in-time inventory system.

Definition:The issue of having insufficient stock of goods, which can negatively impact customer satisfaction and business revenue.