The four possible events in expected cost of stockouts are delay in delivery, inventory inaccuracies, production disruptions, and unexpected increase in demand.
In the context of expected cost of stockouts, the four possible events are:
- Delay in delivery: When there is a delay in delivery, the desired quantities of the product are not available on time.
- Inventory inaccuracies: This occurs when there are errors in tracking and managing inventory, leading to stockouts.
- Production disruptions: These are events that interrupt the production process, preventing the production of desired quantities.
- Unexpected increase in demand: If there is a sudden surge in demand for a product, it can lead to a stockout if the supply cannot keep up.