drkohler said:
First of all, manufacturers don't give a sh*t what the market does. Flextron/Taiwan Inc. manufactures exactly the number of items the producer wants. It is up to the producer to figure out how many to manufacture, for each fiscal year in advance. If the producer ordered too many items, tough chances. If the producer ordered too few items, it might be able to get more (for a hugely higher price, obviously). Secondly, if you think that large distributors buy items on a "Get some more items from the producer, we are running out of them", you are seriously wrong. Large retailers, like MediaMarkt/Saturn/etc have their plans laid out on commodity items months in advance (depending on what the producer announces for the commodity item for its fiscal year). It's not like MS said in January "Hey MediaMarkt, next month we have a cool Kinect bundle. How many?". This Kinect stuff was ordered many months in advance, at a point when noone realised they would still be sitting on unsold XMas inventory. "Retailers do not want lazy stock taking up space" - of course not, noone wants. But it just happens so, all the time, everywhere. |
Just repeating Kowens point
1) Big corporations have dedicated inventory control department/teams. It is very unlikey they would allow such costs to incur, especially during times when margins are stretched.
2) Retailers and manufacturers get supply chains and stock predictions much more under control as time passes (analysing past trends)
