Does the skirt still have time to earn back a reorder?
You are interviewing for an in-season buying role at a fictional UK apparel retailer.
The question
The skirt pilot received 100 units. It sold 45 in week one and 25 in week two. Those are retained sales. Thirty sellable units remain with no pending returns. Four full-price weeks remain at £40. Forecast demand is 25 units each week. Unmet demand at week end is lost.
| Smaller lot | Larger lot | |
|---|---|---|
| Units | 50 | 75 |
| Landed cost per unit (£) | 16 | 16 |
| Delivery | Start of week 3 | Start of week 3 |
The new-buy budget is £1,200 at landed cost.
Use existing stock first. Subtract the full cost of the reorder from its full-price sales and the £6 per unit recovered on any of that lot left after the window. Leave existing stock outside this calculation.
“Decide whether and how much to reorder while there is still time to sell it.”
Not saved by this site. Your browser may restore text when you navigate back.
A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: What is the gap before delivery?
What would you do here? Open the move you’d make.
Expect a 20-unit gap before the reorder arrives
The strong move. There are 50 forecast sales and 30 available units before week 3.
Use all four weeks of demand to size full-price reorder sales
Tempting, but it misses something. The standard lot can serve only the demand after its receipt.
Plan to fill the first 20 missed sales in week 3
Tempting, but it misses something. This case says unmet demand is lost at week end.
See how a strong candidate says it
“Two weeks of demand total 50 units. We have 30, leaving 20 unserved before the new stock arrives. Only two full-price weeks remain after receipt.”
Why it works: Orders placed now cannot serve demand that the case says is lost before delivery.
Step 2: Which standard lot would you buy?
What would you do here? Open the move you’d make.
Buy 75 because the whole budget is available
Tempting, but it misses something. The additional 25 units cost £16 each and recover £6 each in this forecast.
Buy 50 for £1,200 of proceeds after cost
The strong move. This lot covers the two selling weeks after arrival without buying stock for the recovery channel.
Buy neither because the reorder cannot solve the early gap
Tempting, but it misses something. A reorder still serves profitable demand in the final two weeks.
See how a strong candidate says it
“I would take 50. It costs £800 and can earn £2,000 in full-price sales, leaving £1,200. The 75-unit lot sells the same 50 at full price and recovers £150 on the rest. After its £1,200 cost it gives £950.”
Why it works: Both lots fit the cash limit. Extra units in the larger lot recover less than their landed cost.
Step 3: Which new offer is better?
The supplier now delivers either standard lot at the start of week 4. Another approved supplier can deliver 30 units at £20 each at the start of week 2. The forecast is still 25 units per week.
What would you do here? Open the move you’d make.
Keep the 50-unit lot because its unit cost is lower
Tempting, but it misses something. It now has one selling week left, so 25 of those units go to recovery.
Switch to 30 faster units
The strong move. The faster arrival leaves three selling weeks and gives the highest proceeds after landed cost.
Move up to 75 so enough units remain in stock
Tempting, but it misses something. The extra units arrive too late to increase full-price sales.
See how a strong candidate says it
“At the new delivery date, either standard lot can sell only 25 at full price. The 50-unit lot earns £350 and the 75-unit lot £100 on our measure. I would take the faster 30-unit lot. Five old units remain at its arrival. It can still sell all 30 at full price and earn £600.”
Why it works: The faster lot costs more per unit. Its earlier availability supports more full-price sales and fewer units left over.
Step 4: How much demand justifies the faster lot?
The buyer checks the faster lot on its own. The revised forecast gives it 17 full-price sales after the existing stock sells. The £6 recovery offer still applies to each unit left.
What would you do here? Open the move you’d make.
Approve because a 17-unit forecast exceeds half of the lot
Tempting, but it misses something. A share of the lot does not show whether the expected receipts cover cost.
Require 15 full-price sales because £600 divided by £40 is 15
Tempting, but it misses something. That ignores the £6 recovery from each unit left.
Check the recovery price and the 13-unit threshold
The strong move. At 12 full-price sales the lot loses £12. At 13 it earns £22.
See how a strong candidate says it
“At 17 full-price sales and 13 recoveries, receipts are £758. After £600 cost, that leaves £158. At least 13 units must sell at full price to avoid a loss under the £6 recovery assumption. I would verify demand and that recovery offer before ordering.”
Why it works: The threshold gives the buyer a clear point at which the smaller, faster lot stops paying for itself.
The answer, in short
- Decision
- Buy against the full-price selling time that remains after delivery.
- Because
- Lead time, cash limit and recovery value determine the economics of each lot.
- What would change it
- New demand, later arrival or a change in recovery value would change the recommendation.
Common traps
- Calculate the remaining selling weeks after the delivery date.
- Include the purchase cost of all units in the reorder lot.
Check your answer
- I checked the pre-delivery gap.
- I compared both standard lots.
- I revised the plan after the lead-time change.
- I gave a demand threshold and assumption.
Last reviewed Nov 11, 2026