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This is a case in which the marketing people and the finance people need to collaborate. Here is a story that may or may not be true. A women's clothing store, Chas. A Stevens, went broke in the late 1980s. the store was 102 years old at the time. Supposedly, the mistake they made was thinking that miniskirts were going to be fashionable and planning their inventory based on that. Turned out that miniskirts didn't become as fashionable as the store thought they would, and the store was stuck with a lot of miniskirt inventory. They didn't really have anything else to sell and had to dump the miniskirts at a loss. Extreme working capital problems resulted. Some former execs with the store denied that this was what happened. You could research it if you liked.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92031169

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