What are Lost Sales?
Lost Sales tells you how many more units each product would have sold if
your firm had manufactured enough to satisfy demand. If this figure is zero
for a given product, then all the demand for that product was satisfied in the given period.
How do I know if I have Lost Sales?
The Product Summary report and the Market Summary report both show the Lost Sales of your firm (if there are any).
Your product’s delivery index will decrease if you have Lost Sales as your customers have to wait for goods to be delivered to your retailers.
How do I avoid Lost Sales?
To avoid Lost Sales you need to ensure that you manufacture enough units to satisfy demand. This is done by:
- Making accurate Sales Forecasts
- Setting your Planned Production based on your Sales Forecasts and existing Inventory Levels
- Ensuring your factory is large enough to manufacture the required units
This support article applies to the following simulations:
MikesBikes Introduction to Business Simulation
MikesBikes Advanced Strategic Management Simulation