Comments on: Retailing: Why does XL abound but M and L always sell out? http://positiveexternality.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/ Economic observations of everyday life... Sun, 02 Jan 2011 06:32:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Ric Turley http://positiveexternality.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/comment-page-1/#comment-22 Ric Turley Wed, 07 May 2008 23:41:27 +0000 http://www.respectcapitalism.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/#comment-22 Is it possible that these letters stand for more than just size, perhaps also a perspective derived from size? I hear similar comments from all sizes about the desired clothing coming only in other sizes and experience it frequently myself. So I've decided that as an XL, I have an XL perspective and it is more likely that the shirt I like will be liked more by XLs than Ms and Ls. Hence, I always find an abundance of the wrong sizes for the shirts I like. Is it possible that these letters stand for more than just size, perhaps also a perspective derived from size? I hear similar comments from all sizes about the desired clothing coming only in other sizes and experience it frequently myself. So I’ve decided that as an XL, I have an XL perspective and it is more likely that the shirt I like will be liked more by XLs than Ms and Ls. Hence, I always find an abundance of the wrong sizes for the shirts I like.

]]> By: benhughes http://positiveexternality.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/comment-page-1/#comment-21 benhughes Sun, 04 May 2008 20:54:36 +0000 http://www.respectcapitalism.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/#comment-21 You've hit on a good possibility: the stock of shirts is not continuous but rather discrete, more like a step function. As such, it may be that companies that for example estimate 2.1 shirts will be demanded in extra large will order 3 shirts. If the same company estimates 20.1 shirts will be demanded in medium and gets 21 to round up, the rounding effect is proportionally higher for the smaller-demanded items. Still though, it would seem to me that this "discreteness" hypothesis would only explain part of the discrepancy. I'm inclined to believe it's just subpar management. You’ve hit on a good possibility: the stock of shirts is not continuous but rather discrete, more like a step function. As such, it may be that companies that for example estimate 2.1 shirts will be demanded in extra large will order 3 shirts. If the same company estimates 20.1 shirts will be demanded in medium and gets 21 to round up, the rounding effect is proportionally higher for the smaller-demanded items. Still though, it would seem to me that this “discreteness” hypothesis would only explain part of the discrepancy. I’m inclined to believe it’s just subpar management.

]]> By: Dario Cukier http://positiveexternality.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/comment-page-1/#comment-11 Dario Cukier Sun, 13 Apr 2008 23:28:46 +0000 http://www.respectcapitalism.com/2008/01/13/retailing-why-does-xl-abound-but-m-and-l-always-sell-out/#comment-11 This is a nice question. One possibility is that there are more people in the M and L sizes, and therefore the manufacturer needs to make more S and XL than is expected, to minimize the probability of breaking the stock. Another possibility is that M and L surpluses get exported (there is a huge market for overstocks). A related question: I believe most men are L and XL, and most women are S and XS. I think is if beacause most men want to be taller than avg, and most women want to be smaller than avg. This is a nice question. One possibility is that there are more people in the M and L sizes, and therefore the manufacturer needs to make more S and XL than is expected, to minimize the probability of breaking the stock. Another possibility is that M and L surpluses get exported (there is a huge market for overstocks).

A related question: I believe most men are L and XL, and most women are S and XS. I think is if beacause most men want to be taller than avg, and most women want to be smaller than avg.

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