The manager at AnyLogo is considering the purchase of high-speed embroidery machines that will allow it to embroider on demand. In this case, the apparel will be made in Sri Lanka without any logo; the logo embroidery will be postponed and will be done in the United States on demand. This will raise the cost per unit to $18. However, AnyLogo will not have any holiday or company-specific apparel to be disposed of at the end of the season. The apparel without logos can be sold for $18 a unit to retailers. The cost of holding inventory and shipping adds $4 to the cost of any apparel left over after the holiday season. With all other information as in Exercise 6, do you recommend that the manager at AnyLogo implement postponement? What will be the impact of postponement on profits and inventories?

\begin{tabular}{|c|c|c|c|c|c|c|} \hline Analysis when embroiden & Sril & & & & & \begin{tabular}{l} Analysis with \\ ostponement \end{tabular} \\ \hline Inputs & IBM & AT\&T & HP & Cisco & & Aggregation \\ \hline \begin{tabular}{l} Anticipated demand \\ Standard deviation \end{tabular} & & & & & & \\ \hline Unit costs & & & & & & \\ \hline Sales price & & & & & & \\ \hline Disposal value & & & & & & \\ \hline nventory holding costs & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline Salvage value & & & & & & \\ \hline Cost of understocking & & & & & & \\ \hline Cost of overstocking & & & & & & \\ \hline & & & & & & \\ \hline Outputs & & & & & & \\ \hline Optimal cycle service level & & & & & Total & \\ \hline Optimal production lot size & & & & & & \\ \hline Expected profits & \#DIV/0! & & & & & \\ \hline Expected overstock & \#DIV/0! & & & & & \\ \hline & & & & & & \\ \hline \end{tabular}