Q: 12
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?
Options
Discussion
Option B makes more sense. Pooling inventory and the forecast gives a better demand signal and reduces excess in isolated channels. A (smaller orders) is a common trap, but it doesn't fix fragmented forecasting. Seen this concept pop up in practice questions before.
Why not B here? Pooling inventory and forecasts usually means less excess sitting separately in each channel.
B not A. Pooling gives you a single demand signal and helps right-size inventory overall for all channels. Smaller orders (A) just spreads out the problem if forecasts are still siloed. Pretty sure B is what APICS wants here, agree?
Guessing A here since placing smaller orders could technically keep old stock from piling up if channels aren't coordinated.
Its A. Placing smaller orders should help keep inventory fresher and reduce the chance of items sitting too long. I think that's how they'd test inventory obsolescence on a real exam. Not totally sure though, maybe missing something.
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