In business administration, a shortage refers to the part of an order or order quantity that can not be delivered immediately due to warehouse exhaustion . These goods can only be delivered to the customer after a storage-related delivery time ( precautions ). The opposite is the excess .
A shortage occurs when the material required in a company at a certain point in time is not available on time or in the required quality. Shortages can occur in relation to the customer in the area of distribution or in relation to production in the supply by procurement.
According to Schmid, the occurrence of shortages can be attributed to the following causes:
- Overtime not to be covered by the supplier or insufficient delivery capacity
- Production error
- Unpredictable production interruptions or transport disruptions at suppliers upstream in the supply chain
- Errors or lack of information in the disposition of stocks
Shortage costs are delivery-related price reductions or costs of delayed delivery that arise for each shortage unit.
As a result of shortages, costs for shortages arise if products cannot be manufactured and delivered to the customer as planned or the production process has to be interrupted or modified.
Shortage costs are z. B. caused by lost contribution margins from sales, business interruption costs for machine shutdowns, fixed costs that are not offset by services, or expenses for anticipating material bottlenecks (e.g. rescheduling of orders, material search).
According to Francois, shortage costs can be divided into direct and indirect shortage costs. Direct shortage costs arise directly from a shortage event in production (e.g. from the costs of an interruption in operations due to shortages). Indirect shortage costs, on the other hand, result from measures to remedy or cushion material shortages (e.g. urgent procurement of the missing material).
According to Kottke, the amount of the shortage costs depends on both the shortage and the duration of the shortage. Individual components of the shortage costs can be divided into time-dependent (e.g. contractual penalties in the event of a delay in delivery), quantity-dependent (e.g. loss of orders to competing companies) or simultaneously time and quantity-dependent costs (e.g. urgent procurement of missing material).
Shortage costs can be quantified by determining the opportunity costs caused by shortages (e.g. capital tie-up costs for material lying on the ground) or the costs for cushioning the effects of shortages (e.g. urgent procurement).
- Research project development of a decision model for positioning the warehouse and procurement logistics between shortage costs and service level using the example of hydraulic components. Duration: September 1, 2009 to June 30, 2011. Institute for Integrated Production Hanover
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