A company distributes its products through wholesale, retail stores, and its e-commerce website. Inventory and demand forecasting for each channel is managed separately. The company is experiencing high levels of obsolete inventory. Which of the following strategies is most likely to reduce the levels of obsolescence?
Pooling inventory and the forecast is most likely to reduce the levels of obsolescence. By managing inventory and demand forecasting jointly across all channels (wholesale, retail, and e-commerce), the company can gain a more accurate and comprehensive view of its overall inventory needs. This approach allows for more efficient allocation of stock where it is most needed and reduces the risk of overproduction and excess inventory in any single channel. Consequently, it helps in minimizing obsolete inventory by ensuring that supply is more closely aligned with actual demand across all distribution channels.
Why not A? Smaller orders to sell through inventory quicker and having a lower risk of obsolescence.
Why not C? if you have a big risk of inventory being stuck, why not open more retail stores? to get rid off the inventory? how will pooling all inventory will help you get rid of it?