This case explores the issues of obsolescence and inventory control in a local sportswear corporation that is contending on the global stage with both the multinational corporations and overseas, low cost vendors. Athletic Knit, a family-owned business in Toronto, faces the need to balance peak-season demand during the third quarter of the year with the accessible knitting output capacity.
athletic knit case study solution
Too much inventory can be a liability, although inventory, if it serves a function, can be an advantage to a company. Trade offs between capacity, stock, and flexibility to satisfy custom orders should be satisfied to support corporate strategy. Given the competitive nature of the industry, tighter inventory controls are essential, but the business must weigh endangering its reputation for speedy answers to custom orders through handling inventory to prevent stock-outs and overruns of stock that cannot be sold.
PUBLICATION DATE: August 31, 2012 PRODUCT #: W12175-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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