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An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, my job is to troubleshoot the problem and get results. My instinctive reaction is to open up new channels of distribution. I need to come up with five critical questions I should ask myself before going ahead with my plan. Justify response with logical reasoning.

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An overoptimistic sales forecast has resulted in excess inventory sitting idle at a company's warehouse. As the manager of the company, my job is to troubleshoot the problem and get results. My instinctive reaction is to open up new channels of distribution. I need to come up with five critical questions I should ask myself before going ahead with my plan. Justify response with logical reasoning.

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The first question is the cost benefit analysis of opening new distribution channels. Is the money and time spent on developing new channels really worth from revenue perspective?

Secondly, we need to evaluate that whether or not such new channels will negatively impact the existing ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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