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Case AnalysisFor the past two months our gross sales on grunter engagement has almost doubled due(p) to the change magnitude demand from the market and the competitors unsuccessful selling promotion. However, the problem rises from the overwhelming demand. umpteen back orders are just piled up on the warehouse theater directors desk, and some of the customers lost their patience with us.What we really need flop now is to limit or reduce the abnormal demand from the customers by raising the charge of our products, but to gain a reputation from our customers, we should deal out completing all the backorders with a original price. In a orotund term, the solution to solve this inventory famine still relies on adequate and on-time supply from our supplies.The main reason causing this tremendous and unusual broad(prenominal) demand from the customer is the loosing market share of our competitors. Also, there is a orifice that some customers fuddle the false expectation ab out the future price of the market. They heard the rumor about the cost of raw copper stuff and nonsense might go up, so they predict that the price of the copper fitting should go up as well. Consequently, they start to make more purchases and terminal more inventories more than usual to save some money after the price of copper rises. After a serious discussion with our market and warehouse managers, we found a strategy to solve this inventory shortage crisis. We can purchase overstocked merchandises a very low cost from our competitors, since their patronage is slow, and they do not have enough cash flow. Since most of our competitors are local, we can save a bundle from the shipping and handling if we deprave their products. But the disadvantage of this is that it might confuse our customers, because the products we purchase from other companies have their own logos. It might become an opportunity for our competitors to get free advert on their products through our market chain. We can also begin placing big orders to our supplier to prevent future shortage. However, downside of this is the risk for overstock inventory. The price of copper fitting is very hard for us to foresee, if the price of fitting drops due to other companies new wave of promotions or other macroeconomic influences, consequently it will slow our sales down as well as our cash flow.