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7. YB Sporting Apparel prints up novelty T-shirts commemorating major Texas Tech sports events (e.g., the NCAA Final Four, the College World Series, etc.) The
7. YB Sporting Apparel prints up novelty T-shirts commemorating major Texas Tech sports events (e.g., the NCAA Final Four, the College World Series, etc.) The T-shirts cost $5 to make and distribute and sell for $20. Company policy is to dispose of any excess inventory after the event by discounting T-shirts by 80%, that is, sell for $4. In 2018, YB printed shirts for the NCAA Final Four. YB estimated that demand would be Poisson with an expected demand of 6,000 shirts, but YB did have a significant amount of uncertainty about the demand forecast. Because of this uncertainty, YB only printed 5,000 shirts. What do you think of this decision? What quantity would you have recommended printing
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