Shortage costs

Shortage costs arise when quantities of goods to satisfy a need in production or sales (Distribution logistics) are not available in sufficient quantities at the respective time of need. In the distribution area, the shortage costs are made up of additional costs due to additional sales processes, additional costs due to express freight, lower net revenues due to missed deadlines and lost profit margins due to partially or completely lost business.


Was the explanation to "Shortage costs"Helpful? Rate now:

More explanations too