Given the uncertainty associated with player demand

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1) Given the uncertainty associated with player demand, how should Reebok approach inventory planning for NFL replica jerseys?

2) What should Reebok’s goal be? Should Reebok minimize inventory at end of season? Or maximize profits? Can Reebok achieve both? What service level should Reebok provide to its customers?

3) Is the newsvendor model helpful here? What is the cost of underage for a dressed jersey? What is the cost of overage for a dressed jersey? How might Reebok decide between dressed jerseys and blank jerseys?

4) Using the forecast for the New England Patriots what is the optimal quantity to order for each player? For blank jerseys? What profit do you expect for Reebok? How much and what type of inventory is expected to be left over at the end of the season? What service level?

Reference no: EM13762202

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Given the uncertainty associated with player demand : Given the uncertainty associated with player demand, how should Reebok approach inventory planning for NFL replica jerseys? What should Reebok’s goal be? Should Reebok minimize inventory at end of season? Or maximize profits? Can Reebok achieve both?..

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