Statement:
A retail company's inventory manager consistently orders too much stock during seasonal periods, leading to significant markdowns and storage costs. When questioned, the manager says they "better safe than sorry" and always order the maximum amount to avoid stockouts, even though sales data shows consistent overordering.
What decision-making improvement should be implemented?
- AOption (a)
Reduce order quantities by 20% across all products
- BOption (b)
Implement demand forecasting models based on historical sales data and market trends
- COption (c)
Hire an additional inventory analyst to double-check all orders
- DOption (d)
Switch to just-in-time inventory management immediately
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Correct answer
Reduce order quantities by 20% across all products