Reference no: EM133545923

Question 1: Using the forecast for the New England Patriots, consider a strategy where Reebok orders dressed jerseys for each star player and blank jerseys for all other players from the contract manufacturer (CM), and the blank jerseys are then dressed at Reebok (Indianapolis) for all other players afterwards. What is the underage cost and overage cost for each type of jerseys? What is the optimal ordering quantity? What profit do you expect for Reebok using this strategy?

Question 2: Answer the questions in 3) for an alternative strategy where Reebok orders only blank jerseys from the contract manufacturer. The blank jerseys are then dressed at Reebok (Indianapolis) for all players afterwards