Reeboks Goals Reeboks goal should be to maximize profits, while taking into paper the production costs, the revenue it can get from a sale, document place costs and salvage value of the excess jerseys. This is beca function although Reebok whitethorn want to minimize inventory, it needs to consider the impact such(prenominal) an action will fool on the inspection and repair take aim and its profitability. A low inventory may mean suffer holding costs and lower risks of having excessive dressed jerseys later the barricade of mollify, which may become obsolete due to players substitution teams or changes in jersey design. However, it could in like stylus mean a lower service level as it shams 4-8 weeks for jerseys to arrive at their warehouse from the CM. By that time, the demand would have yet changed again as the NFL games are played nigh every week. Therefore, it would be break dance for Reebok to aim at maximizing profit, as that will take all the risk, servic e level and inventory into account. MANAGING UNCERTAINTY IN DEMAND postulate for the jerseys is very pacifyal and is uncertain as a band depends on the performances of the team. This is especially so for the months of Oct - Dec when the NFL regular season is in play. Here is when certain jerseys become hot-market items, resulting in shortages.
In addition, the signing on of new players or changing of teams of players during the off-season also add to the difficulty in having an accurate forecast for the anatomy of jerseys to produce. Postponement and Risk-pooling Given the uncertainty associated with playe r demand, Reebok should make use of postpone! ment and picture to push sanction the decision to mark the players number and pee on the jersey as back as possible. This is because the endless the horizon, the worst the... If you want to get a full essay, exhibition it on our website:
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