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?

Description	Mean	Standard Deviation
New England Patriot Total	87680	19211
Tom Brady	30763	13843
Ty Law	10569	4756
Troy Brown	8159	3671
Adam Vinatieri	7270	4362
Tedy Bruschi	5526	3316
Antowain Smith	2118	1271
Other players	23,275	10,474

The wholesale price charged by retailers is $24 and the retailers sell the product for more than $50. The blank jerseys(other) cost $9.50 and a dressed jersey(player named) costs $10.90. The cost to decorate a blank jersey is around $2.40. The salvage value of a discounted dressed jersey is $7.00. The cost of holding a jersey is $1.45 which is 11 percent of the manufacturing cost. The salvage value for unsold blank jerseys is $9.50 - $1.40 = $8.46.

The underage cost for a blank jersey is calculated as $24.00 - $11.90 = $12.10. The overage cost of the blank jersey is calculated as $9.50 - $8.46 = $1.04. The probability of meeting demand is 0.92. The underage cost of the dressed jersey is $24 - $10.90 = $13.10 and the overage cost is $10.90 - $7.00 = $3.90. The underage cost if a blank is available to utilize is $1.00. The critical ratio is 0.33.

Use the Newsvendor Model with Risk Pooling. Also note, there are five parts to this one question. Provide an explanation of how the problem is solved.