What often results from the practice of hoarding supplies during a potential shortage?

Hoarding supplies during a potential shortage can lead to heightened supply chain volatility. This occurs because when large quantities of supplies are accumulated, it can create significant fluctuations in supply levels. This practice can disrupt the natural flow of inventory and may lead to imbalances in supply and demand. Moreover, it can lead to a false sense of security among businesses, making them less responsive to actual market conditions.

When hoarding occurs, it can also strain relationships with suppliers and distributors, as suppliers may not have a clear understanding of the true demand. This could lead to mismatched expectations and planning, ultimately resulting in more unpredictable and unstable supply chains. The effects of such volatility can ripple through the entire supply chain, affecting production schedules, lead times, and customer satisfaction.

In contrast, increased availability of stock, overall cost reduction, and improved demand forecasting are typically not direct outcomes of hoarding behavior. Hoarding can lead to overstock issues, increased costs due to storage or waste, and reliance on inaccurate forecasts since demand may be distorted by the sudden availability of hoarded supplies.