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GMAT阅读资料第42篇

发布时间:2006-06-23 17:06     点击:
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  Excess inventory, a massive problem for many busi- nesses, has several causes, some of which are unavoidable. Overstocks may accumulate through production overruns or errors. Certain styles and colors prove unpopular. With (5) some products-computers and software, toys, and books-last year's models are difficult to move even at huge discounts. Occasionally the competition introduces a better product. But in many cases the public's buying tastes simply change, leaving a manufacturer or distributor with (10 ) thousands (or millions) of items that the fickle public no longer wants.

  One common way to dispose of this merchandise is to sell it to a liquidator, who buys as cheaply as possible and then resells the merchandise through catalogs, discount (15) stores, and other outlets. However, liquidators may pay less for the merchandise than it cost to make it. Another way to dispose of excess inventory is to dump it. The corporation takes a straight cost write-off on its taxes and hauls the merchandise to a landfill. Although it is hard to believe, (20) there is a sort of convoluted logic to this approach. It is perfectly legal, requires little time or preparation on the company's part, and solves the problem quickly. The draw- back is the remote possibility of getting caught by the news media. Dumping perfectly useful products can turn into a (25) public relations nightmare. Children living in poverty are freezing and XYZ Company has just sent 500 new snow- suits to the local dump. Parents of young children are barely getting by and QPS Company dumps 1,000 cases of disposable diapers because they have slight imperfections. (30) The managers of these companies are not deliberately wasteful; they are simply unaware of all their alternatives.

  1. The author mentions each of the following as a cause of excess inventory EXCEPT

  (A) production of too much merchandise
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