As the product life cycle gradually shortened, manufacturers make compressed inventory to avoid the product backlog, as the production operation management and cost control's priorities. However, excessive destocking often leads to the result of the product out of stock. When the product out of stock happens, customers tend to purchase other brand alternatives, enable manufacturers face greater than retailers out of stock loss. In addition, in response to the diversification of customer needs, manufacturers are often at the launch of a new generation of products at the same time, continue to production and sales of the old products.
With the development of the product life cycle shorten, manufacturers to reduce inventory and avoid product backlog, listed in order toproduction operation management and cost control of the first problem.However, excessive compression inventory results often leads toshortage occurred. When a stockout occurs, consumers tend to buy other brands substitute behavior, allows manufacturers face a retailer more stock loss. In addition, in order to meet the diverse needs of customers, manufacturers often in the launch of a new generation ofproducts at the same time, to continue the production and sale of the old generation product.
With the gradual shortening product life cycles, manufacturers to reduce inventory to avoid the product backlog, as the production operations management and cost control primary problem. However, the results are often overly compressed inventory will lead to product shortages occur. Occurs when the product is out of stock, customers tend to buy other brands of alternative behavior, making manufacturers face a greater than retailers stock losses. In addition, in response to the diverse needs of customers, manufacturers will often introduce a new generation of products, continue to produce and sell the old generation products