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Its mistake, according to Andy D. Bryant, the company's chief financial officer, was that it should have reduced its production levels sooner than it did to avoid an inventory surplus.
Inventory surplus can be a big problem for hotels as well as ticketed events; in terms of the latter, the merchandise is perishable, as tickets that go unsold for a concert equals can't be offloaded a week later.
"About 75 to 80% of the time that space is sitting empty," King says, describing the inventory surplus at restaurants and bars that normally only fill the floor during evening times.
Provided the company's infrastructure can support an inventory surplus, an anticipated increase in the cost of goods can be countered by purchasing the products while prices are comparatively low.
Similar(56)
Even a strong union could not expect a quick, favorable settlement to contract negotiations with a company that has a huge stock of surplus inventory and substantial cash reserves.
Never used as a park, the property was inventoried as surplus county land and acquired by the city this year by a quit-claim deed.
Never used as a park, the property was inventoried as surplus county land and acquired by the city this year through a quit-claim deed.
Purchasing surplus inventory does carry some degree of risk, in that if buyers for your acquired inventory cannot be located, you are left with a collection of goods that are more or less worthless to you.
Instead, the style has its roots in surplus inventory.
And so the surplus inventory traditionally is sent to the incinerator, just thrown away.
Eventually, eBay's core marketplace could also serve as an outlet for GSI's large retailers if they need to get rid of surplus inventory.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com