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Regarding the post below assess the type of risk they are proposing in order to meet customer demand? Explain how you might alter their approach and why.

Based on the information provided management should prepare for the estimated demand at the lowest point of the product season. When sales are low and complete inventory is accounted for a more accurate business decision can be made about the amount of additional widget inventory can be added.  One key thing that should be considered when preparing for the demand is the differences between the old and new product.  For example, when it comes to new and improved cell phone models it can be a year or more before the newest model is released, however many customers compare features to determine if it’s worth giving up the old product for the new while others will simply trade in the old to have the new.  Another thought to consider is storage and what will be done with the excess product after the peak season.

Operation Management, Management Studies

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