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What is a Shortage?

A shortage occurs during withdrawal, removal from storage or acceptance of goods when there is an unwanted difference between the specified and actual stock. In most cases, it is an order or purchase order quantity that cannot be delivered immediately due to stock depletion.

However, shortfalls can also occur in relation to production when supplies are supplied by procurement. For companies that run out of stock too often, the risk of losing customers to the competition is high.