1. Lost Sales: When products are unavailable, customers may turn to competitors, resulting in lost revenue. 2. Customer Dissatisfaction: Failing to meet customer needs can harm your brand’s reputation and reduce customer loyalty. 3. Operational Inefficiencies: Frequent stockouts can disrupt operations, leading to inefficiencies and increased costs. 4. Opportunity Cost: Resources tied up in other areas may not generate as much return as they would if invested in maintaining adequate inventory levels.