A Very Wrong Inventory for the Retail Sector

swell by $32\%$ and $43\%.$ Off$-$price retailers Burlington and Ross Stores indicated that they also saw closeout inventorv start to skvrocket.

getting pickier with their dollars. Kohl's, Target, and TJX Cos. all said sales in the home category have declined.

away from name brands to private label on categories such as deli and lunch meat.

respectively, last year. By contrast, Walmart, Target, and off$-$price retailer TJX all turn over inventory more than $6$ times a year.

Source: The Wall Street Journal $($October $5,2022).$

Critical Thinking Questions

In the basic EOQ model shown below, which variable did the retail sector get very wrong?

$Q^{**}=\sqrt[\phantom{2}]{\frac{2DS}{H}}$

A$.H$

B$.S$

C$.$ square root $($as it is not relevant in the retail sector$)$

D$.$ D