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School Name AVG Game Attendance EBAY Sales Last Yr Last Yrs Actual Sales This Yrs Average Forecast OSU 105,261 102 2,398 2600 Michigan 108,933 177

School Name

AVG Game Attendance

EBAY Sales Last Yr

Last Yrs Actual Sales

This Yrs Average Forecast

OSU

105,261

102

2,398

2600

Michigan

108,933

177

1,323

1867

Pitt

50,457

31

969

1100

Michigan State

74,741

1717

Indiana

41,833

617

Penn State

107,008

Wisconsin

80,109

Iowa

70,214

Illinois

59,545

Minnesota

50,805

Northwestern

24,190

Nebraska

85,071

Rutgers

31,478

Maryland

75,327

Total

310

4690

7901

As for advertising the sweaters for next season, Rhonda is committed to using the same approach used last year. The firm placed ads in the football program sold at each game. These worked very well for reaching those attending the games, but she realized there may be ways to advertise that may open sales to more alumni. She has hired a market research firm to help identify other advertising outlets but has decided to wait at least another year to try something different.

Forecasting demand is a major problem for the company. You have asked Rhonda and Steve to predict what they think sales might be next year. You have also asked the market research firm to apply their forecasting tools. Data on these forecasts are given.

Based on advice from the market research firm, you have decided to use the average demand forecast to determine your orders.

You will allocate your order to the individual schools based on their expected percentage of total demand. You discussed your analysis with Rhonda and Steve and they are OK with your analysis. They would like to see what the order quantities would be if each school was considered individually. You were also able to work with your suppliers and worked towards increasing a positive relationship, they have lowered your order minimum to 500 sweaters. They have also reduced their lead time to 8 weeks.

How many sweaters should you order this year? Break down your order by individual school and size. Document your calculations in your spreadsheet.

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