Explain why a shortage might be present at a store and how a

Solution

A business is dependent on various aspects and one of the most important aspect is the manufactured product or service that is sold in order to earn revenue. A general store doing business and selling products need to do a proper planning of the business along with the products in order to avoid shortage of products. There are various reasons of shortage, firstly, improper planning of products is a reason where the store keeper was unable to plan properly and the products brought in number where not as per the need to the customers. Secondly, inventory management gone wrong because the product comes from an inventory and the track of the products are not maintained properly that is the reason the store is experiencing shortage of a product. Thirdly, demand analysis not done correctly because the objective of demand analysis is to understand the demand of products in the future and the stock has to be maintained accordingly, the analysis is based on forecasting which depends on various factors. Due to improper forecasting there is a shortage. Fourthly, issue in the Supply Chain because of which the product is unable to reach the store. Lastly, insufficient capital can also be the reason due to which the store is unable to purchase new stock.

The manager needs to act according to the problem and as said that prevention is better than cure hence demand analysis and inventory management needs to be done properly so that the correct produced is stocked more. The manager has to understand the future of the business and needs to take steps as per the demand and needs of the consumers because if there is demand for a particular product then the store should not lose out on that particular product at any cost. Effective business management skill needs to be applied so that the store does not lose out on potential business.