Stock-out avoidance

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.)