Stock is up 30%. So are the availability complaints.

Holding more inventory while still running out is not a contradiction: it is the predictable result of managing stock as one number rather than as many.

By Steve 5 min read
Abstract bridge artwork for Stock is up 30%. So are the availability complaints.

A business increases its inventory investment substantially over eighteen months. The stated reason is service: too many customers were being told to wait. Eighteen months on, the stock figure on the balance sheet is a third higher, the overdraft is working harder, and the sales team is still logging the same complaints about the same lines. Nothing about that outcome is strange. It is what usually happens when stock is managed as a single number. Aggregate stock is an average of two opposite problems Total inventory value, and the turns…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Operations

Scroll to Top