In logistics, shortage refers to the condition where goods, materials, or inventory are insufficient to meet demand, orders, or production requirements. Shortages can result from supply disruptions, forecasting errors, delays in shipment, or mismanagement of inventory. Effective shortage management involves monitoring stock levels, coordinating with suppliers, expediting shipments, and adjusting production or distribution plans. Minimizing shortages is critical for maintaining service levels, customer satisfaction, and continuity of operations in the supply chain.
Characteristics:
- Insufficient inventory
- Demand not met
- Caused by supply issues
- Requires stock monitoring
- Impacts customer service
