In inventory terminology, what does it mean when an item is described as shortage-prone?

Describing an item as shortage-prone indicates that it frequently runs out of stock, which directly correlates with supply chain management and inventory control. When an item is classified this way, it suggests that the demand for the product exceeds its availability, making it challenging for the business to keep enough stock on hand to meet customer needs.

This situation can stem from various factors, such as unexpected spikes in customer demand, inefficiencies in the supply chain, or miscalculation in ordering quantities. As a result, products that are shortage-prone can lead to lost sales opportunities and negatively impact customer satisfaction.

In contrast, the other choices do not accurately represent the concept of being shortage-prone. An overstock or excess inventory does not reflect a shortage-prone status, nor does it inherently lead to customer complaints or guarantee accurate inventory calculations.