Last updated on Aug 15, 2024

Balancing stock levels in retail sales: How can you prevent both stockouts and overstock situations?

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Balancing stock levels in retail is a critical skill that can make or break your business. A stockout, or running out of products, can lead to lost sales and disappointed customers, while overstocking ties up capital and can result in markdowns that erode profits. The key is to find the sweet spot where you have just enough inventory to meet demand without excess. This balance requires understanding customer behavior, demand forecasting, and inventory management. By mastering these elements, you can ensure that your shelves are never empty nor overflowing, maintaining customer satisfaction and optimizing financial performance.

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