A company distributes its products through wholesale, retail stores, and its e-commerce website.

Pooling inventory and demand forecasts across different distribution channels can help reduce obsolescence by providing a more accurate and holistic view of demand. This strategy allows the company to balance inventory levels more effectively, reducing excess stock and minimizing the risk of products becoming obsolete. Managing inventory and forecasts separately for each channel often leads to discrepancies and inefficiencies, whereas pooling helps optimize overall inventory levels. Options A, C, and D may offer some benefits but are less effective in addressing the core issue of high obsolete inventory.

References:

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies.

https://www.supplychaindive.com