Question: How, if at all, should Javier adjust his orders for new products? Javier should place his orders according to his initial estimates. The inventory buildup
How, if at all, should Javier adjust his orders for new products?
Javier should place his orders according to his initial estimates.
The inventory buildup is not an equilibrium. Javier should respond by cutting back on his orders.
Javier should wait and see what happens next month, and if his inventory runs out, then he can place an order.
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