Gordon orders large amount of clothing items with designs

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Gordon's has a demand supply view. Gordon orders large amount of clothing items with the designs that are trending and becoming a fad and distributes them to the clothing stores. I believe stores can make a lot of money by becoming part of these fads as long as they order an appropriate amount of supply. Ordering too much due to the demand could leave the company with an huge amount of overstock that will not be sold and have to be written off. Having the orders always available will meet the demand of the customers but the inventory will be overstocked.

Beverly has an inventory supply view. She takes in consideration the mountain of supply they have and all of the inventory that is out of date and not in style anymore. She believes the inventory should be lowers and so do I. I believe if the company just kept what they normally sell in stock and order the fad clothing during the periods they are trending to a reasonable amount, the inventory would be under control. I support Beverly's position and I believe the inventory should be changed so the company does not lose money on inventory that is old.

Reference no: EM132190721

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