Effects of under stocking

Write down the effects of ‘under stocking’?

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The effects of under stocking are illustrated below:

-Production procedure can’t be managed efficiently, resulting delivery timetables.

-Firm might finish up paying an idle labor force because of the production delays.

-Organization might lose its significant customers, because of the holdup in meeting customers’ orders.

-Unfavorable quality and prices raised administration costs.

- Because of under stocking it will not be simple for the organization to meet the unforeseen demands of customers.

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