$2$

$1$ point

What is the specific issue behind the saying that inventory $=$ death in the fast fashion industry and how has Zara dealt with this issue?

Most fast fashion retailers spend large sums of money on taking inventory on a regulary basis sot hat they know what they have to sell. Zara avoids this expense

by using RFID tags.

Fashion trends come and go quickly and clothing that does not sell right away can rapidly become unsellable. Zara makes clothes in small batches with a $2-3$

turnaround time from design to store in order to minimize inventory.

The cost of warehousing clothing inventory is very high, so it is essential to minimize that cost. Zara ships directly to stores to avoid having inventory.

Theft is a big problem in the fast fashion industry and having more than a minimal level of inventory leads to unsustainable levels of "shrinkage" or theft. Zara's

RFID tags significantly reduce inventory "shrinkage".

A large bank has found that customers who use online bill pay are significantly less likely to leave bank as customers within the next year. In the language of

startegy, we say that online bill pay creates

choose your answer...

for customers and weakens