Stock shortages occur when a business is unable to fulfil its customer orders due to an insufficient amount of stock. This could be due to unexpected demand from customers, delays in deliveries from suppliers, or a combination of both. In order for businesses to remain profitable and satisfy customer needs, it is important that inventory levels are managed carefully. Businesses can take measures to identify and prevent stock shortages in advance by monitoring inventory levels, using historical data to predict customer demand, and leveraging technology to streamline processes.