Cost of money, stockpile, and cost management are considerations for small stock, as are evaluations, preservation, and shrinking, which do not have much pressure. The weights for large inventory have a greater impact on Crayola because it has an 800,000-square-foot storehouse and needs enough manufactured products to serve 3,600 Walmarts and 1,400 Targets.
Deal models are highly erratic, and equity is not permitted. The academic year launch session accounts for 42 percent of total revenue, with event contracts accounting for 35 percent. Because the resource allocation is limited, Crayola may need to construct an anticipation inventory before the season to supplement resource utilization.
However, this does not rule out the possibility of Crayola introducing stock reduction strategies. Despite the burden of the large stockpile, Crayola properly manages inventory levels by using advances in technology to ease out the process, increasing flexibility via supplier executives, and enhancing estimation. Kanban systems retrieve unrefined materials inventories from warehouses near production lines.