In the yellowdig article \"US Department Stores Maintain Low Inventory this Holi
ID: 376826 • Letter: I
Question
In the yellowdig article "US Department Stores Maintain Low Inventory this Holiday Season" we discuss how retails are trying to have low inventory levels. The strategy is aimed to keep their inventory costs down and avoid the experience of previous holiday seasons, when large piles of unsold stock led to deep markdowns that eroded profts. Retailers hope this will not result in fewer sales as they will attempt to meet customer demand by (according to the synopsis/article posted) O Drop shipping orders directly from manufacturing centers to customers O They are not as worried about meeting demand as they are with not having abundant left over inventory so they will sell what they have and forego remaining demand O Shortening supply chains to restock more quickly in response to demand O Have substitute products availableExplanation / Answer
The correct answer is that they will shorten the supply chain so that as soon as the demand comes they will have the ability to cater to that demand. They are predicting less demand in the holiday season but as soon as the demand comes they will have the ability to fulfill that demand because the supply chain is much shorter and will take lesser time.