Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help trying to figure out how to calculate this question. Using the forecast for the New England Patriots, what is the optimal quantity

I need help trying to figure out how to calculate this question.

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 leftover at the end of the season? What service level?

this is what I got from the chart

Desc. Mean Std Dev

NEW ENG PATRIOT Total 87680 19211

BRADY,TOM #12 30763 13843

LAW,TY #24 10569 4756

BROWN,TROY #80 8159 3671

VINATIERI,ADAM #54 7270 4362

BRUSCHI,TEDY #04 5526 3316

SMITH,ANTOWAIN #32 2118 1271

So far this is the information I have compiled

Retailer wholesale price = $24

Retail sales price excess of $50

Blank jersey to Indianapolis distribution center (delivered) = $9.50

Dressed jersey to Indianapolis distribution center (delivered) = $10.90

Decorating cost for blank jerseys = $2.40

Leftover dressed jerseys discounted for = $7.00

Reebok's cost holding cost = 11%

Table below provides forecast for the New England Patriots. The six named players were the most popular in terms of jersey sales, futhermore these six players each had a demand forecast that was sufficent to cover the CM's (contract manufactuers) minimum order quantity. Whereas Reebok did expect demand for other players, this demand was even harder to forecast and was not likely to excend the CM's minimum order quantity. hence, Reebok developed an aggregate forecast of more than 23,000 jerseys for all other players.

Players named jerseys = dressed jerseys

Other players = blank jerseys.

I worked up the overage and underage cost:

Cost of blank overage = $9.50 x 11% = $1.045

Cost of blank underage = $24.00-9.50-2.40= $12.10

Cost of dressed overage = $10.90 -$7.00 = $3.90

Cost of dressed underage = $24.00-10.90= $13.10

Please help

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management Processes and Supply Chains

Authors: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman

12th edition

134741064, 9780273766834, 027376683X, 9780273766940, 273766945, 9780273766841, 273766848, 978-0134741062

More Books

Students also viewed these General Management questions