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Risk of Stock vs. Excess Inventory

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How do you decide to balance the risks of stock outs against the costs of maintaining excess shoe inventory?

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This solution discusses how one would decide to balance the risks of stock outs against the costs of maintaining excess shoe inventory.

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There are many risks associated with stock outs. An example of the risk is the possible loss of customers to competitors due to customer's loss of faith in the company's ability to provide customers with what they want, when they want it.

Maintaining excess shoe inventory can be costly to the company because money is held up in inventories and therefore not ...

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Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
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