consequence of understocking, May be unable to cope with demand particularly unexpected demand, Deadlines could be missed and sales are lost, Customers may go elsewhere if needs can not be met, More frequent orders need to be placed which could increase money spent on delivery charges, Could lead to reputation damage, consequence of overstocking, Higher storage costs, Money is tied up in stock when it could be used elsewhere, Storage space is being taken up, Stock may become out of date or out of fashion, Greater chance of stock being stolen

Over/under stocking

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