What is cost of not carrying sufficient inventory known as?

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What is the cost of ending inventory given the following factors?
Posted by:
Moataz Ali Sobhi
13-February-2015

(a)Carrying Cost (b) Holding Cost (c) Total Cost (d) Stock-out Cost

Inventory Management

Question added by ABDUS SAKUR TALUKDER , Finance Manager , EMCOR Facilities Services LLC
Date Posted: 2016/02/25

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1 Answers

by Vaseem Ahamad , Associate Director Operations , Perfetti Van Melle

The option d is correct. It is called stock out cost . It is also a loss of opportunity to sale.

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