Managing Stockouts & Overstock — Assessment

Higher taxes Nothing Extra storage fees Customers walking to a competitor and not returning

It lowers taxes It speeds up sales It is frozen cash plus storage and obsolescence risk It has no downside

Tax report Zero-stock report Days-of-stock and slow-mover reports Payroll report

Nothing changes Taxes rise You can create overstock and frozen cash Sales stop

Maximum possible stock Random levels Zero stock at all times The healthy middle that serves demand without freezing cash