Inventory of certain sizes-colors and too little of others

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Reference no: EM131801360

A firm makes and sells T-shirts in three different colors 1) Red, 2) Green, and 3) Blue and each shirt is offered in four different sizes 1) Small, 2) Medium, 3) Large, and 4) X-Large. Each color of shirt uses a slightly different style with different assembly requirements. The firm produces its inventory in two-week cycles. The first week of production is dedicated to coloring the fabric. The second week of production is used to assemble the shirts. Over the summer selling season, they repeat this two-week cycle several times. This manufacturer has limited visibility of end-user demand and they are often unsure of what colors/sizes are selling faster than others.

The firm is suffering from both too much inventory of certain sizes/colors and too little of others. Which of the below strategies is the least helpful in helping the firm better match supply and demand.

A. Reduce the batch sizes of each shirt style to decrease the flow time of inventory through the production process.

B. Eliminate the style differences of the different colors so that the order of production can be reversed (i.e. assemble and then, dye).

C. Add an additional production run during the selling season so that a better forecast can be made regarding desirable colors/sizes.

D. Add additional t-shirt colors to the product line so that consumers are more likely to find a color they like.

E. Gather realtime information regarding demand at retail locations so that more accurate forecasts can be produced.

Reference no: EM131801360

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