Podcast Beta
Questions and Answers
Explain the pressures for small vs. large inventories in the context of Crayola's situation and provide reasoning for your answer.
The pressures for small inventories may include reduced storage costs, lower risk of obsolescence, and increased flexibility to adapt to changing demand. On the other hand, large inventories may provide economies of scale, buffer against supply chain disruptions, and support promotional activities. Students should analyze Crayola's specific circumstances to determine which situation it seems to fit and provide justification for their choice.
How does Crayola's inventory management strategy align with its business objectives and market demands?
Crayola's inventory management strategy should be evaluated based on its ability to support the company's objectives such as meeting customer demand, minimizing costs, and maximizing profitability. Additionally, students should consider how Crayola's strategy addresses market demands, including the need for product availability, responsiveness to changing trends, and efficient use of resources.
Discuss the potential implications of Crayola's inventory management approach on its competitive position in the market.
Students should analyze how Crayola's inventory management approach may impact its ability to compete effectively, considering factors such as product availability, production lead times, response to market changes, and cost efficiency. Additionally, they should assess the potential advantages and disadvantages of Crayola's approach in comparison to its competitors' strategies.
