Stock-out avoidance
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Stock-out avoidance is the motive for holding inventories according to which firms keep extra goods on hand to prevent running out if sales are unexpectedly high. Store of value]]. A way of transferring purchasing power from the present to the future; one of the functions of money. (Cf. medium of exchange, unit of account.)
Definition
According to Macroeconomics by Mankiw (7th edition),
- Stock-out avoidance. The motive for holding inventories according to which firms keep extra goods on hand to prevent running out if sales are unexpectedly high. Store of value]]. A way of transferring purchasing power from the present to the future; one of the functions of money. (Cf. medium of exchange, unit of account.)
