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True or False: Shortage costs are precise and easy to measure?

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Question ajoutée par Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية
Date de publication: 2015/03/28
Hany Helmy Haleem
par Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

False,

I agree with Abdou warshan        

 

Abdou warshan
par Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

False

When the stock of an item is depleted, an order for that item must either wait until the stock is replenished or be canceled. There is a trade-off between carrying stock to satisfy demand and the costs resulting from stockout. This balance is sometimes difficult to obtain, because it may not be possible to estimate lost profits, the effects of lost customers, or lateness penalties.

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