But despite its high-tech pedigree, the company was forced into damage control by inventory shortages, management problems at its Ohio shipping center and an overload on its system for personalizing gifts.

Without accurate and timely inventory levels, internal production plans and external purchase orders cannot be scheduled effectively, leading to inventory shortages and excess inventory.

Dealers reported that inventory shortages could prevent them from taking advantage of strong demand in coming months.

He had lost control of some of the aspects of the business - inventory shortages, cost controls and productivity.

Ames is still digesting its acquisition of the G.C. Murphy Company, which has left it with prolonged inventory shortages, he said.

As for the high level of disappearing merchandise at Ames, Mr. Hollis said, "Naturally that will be something to work on, but we are already making good progress on reducing our inventory shortage."

We were losing business because of inventory shortages.

With some economists estimating damage to the economy of $1 billion a day, the lockout caused some factories to close, some perishable cargo to rot and many retailers to worry about inventory shortages.

"The brokers are stressed because of the inventory shortage and buyer's demand," said Joseph Mottola, the executive officer of the Long Island board.

Ames, with 680 stores, all east of the Mississippi, was already experiencing an inventory shortage because many suppliers had balked at making new deliveries until they were paid for earlier ones.