Problem: We have a university bookstore that controls the majority of local market share for used and new textbooks. The bookstore primary constrains are floor and shelf space for fast selling items such as textbooks and market share for slow-selling items such as general merchandise.
How can they manage the store more efficiently? How can bookstore constrains be both floor space (internal) and market share (external)?
| Department |
Average Inventory |
Annual cost of goods sold |
| New and used textbooks |
$ 1,000,000 |
$ 4,000,000 |
| Computers |
$ 400,000 |
$ 1,500,000 |
| General merchandise |
$ 1,200,000 |
$ 1,400,000 |