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The factory you work with has produced 20,000 T-shirts with your designer label sewn in them. The buyer decides to cancel the order within the time frame in which there can be no penalty for the cancellation. You have informed the buyer of the liability that you have with the factory since, the buyer’s decision has left you with 20,000 T-shirts for which you don’t have any buyer.

You have the below-mentioned options available to resolve this situation. Which option do you think is the best option and why? Discuss why you did not pick the other options and why they would not work.

· Pay the liability and then destroy the goods.

· Give the factory permission to sell off the goods for you.

· Give the factory permission to take your brand off the goods by removing the label, and then they should sell the goods to someone else.

· Pay the factory what is owed, and then try to sell the goods to an off-price buyer to get them out of your inventory.

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