Question

Why did gateway choose not to carry any finished-product inventory at its retail stores? Why did apple choose to carry inventory at its stores?

Answer 1

Why did Gateway choose not to carry any finished-product inventory at its retail stores? Gateway had a strategy to avoid carrying finished goods inventory in retail stores. ... The company's strategy aimed to design a supply chain that would match supply and demand.

Answer 2

Gateway made a decision of not carrying any finished-product inventory at its retail stores so that the customers could configure the systems according to their preferences.

Apple decided to carry inventory to their stores so that they are able to fulfill the demand of the customer according to their needs.

Explanation:

• Gateway chose not to carry finished product inventory with the reason that the customers are able to chose the configuration that suited them. In this way Gateway was being able to bring in flexibility in managing their work according to demand of the customers. Gateway was able to work through their supply chain and logistics that could work through this system for them. The customers were able to try out other products according to their suitability.  Their aim was to reduce the totals costs and maximize on the increase in returns
• Apple on the other hand worked at satisfying their customers with fulfilling their needs and demands for finished products without any delay. This brought down the cost of logistics and shipment because the products and the inventories were all shipped at one time to the retail stores for the customers to pick up their finished products.

To know more about finished-product inventory

Stock of semi finished goods is not included in inventory investment​

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