Excessive orders


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This is actually related to hoarding which the purchasing officer would always cite the recent shortage. Take note that when the price of the goods suddenly goes up then the stocks would immediately earn an increased profit of sorts. However, excessive ordering of supplies is not tolerated by big companies especially when the financial standing is not that good because the cost of money should also be considered.


I understand that sometimes it cannot be avoided to issue an excessive order. One purchasing officer that I know would do that not because of an impending price increase but more for the anticipated shortage. Take the case of pens and notebooks that are issued to the employees for their needs. There is an artificial shortage of such items during the opening of the school year so you might run out of supplies if you don’t order more before that period.
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