Critical fractile
A former CEO of Inditex once remarked that "fashion is like yoghurt, it goes off in a few days". For perishable products with a relatively short life cycle, it is critical to balance the gain of having enough stock to meet demand against the loss of holding large unsold inventories. How to strike this balance is the subject of this technical note.
Collection: IESE (España)
Ref: ADN-292-E
Format: PDF
Number of pages: 11
Publication Date: Feb 12, 2025
Language: English
Description
A former CEO of Inditex once remarked that "fashion is like yoghurt, it goes off in a few days". For perishable products with a relatively short life cycle, it is critical to balance the gain of having enough stock to meet demand against the loss of holding large unsold inventories. How to strike this balance is the subject of this technical note.
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