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YB Sporting prints up novelty T-shirt commemorating major sportevents. The T-shirt cost $5 to make and distribute and sell for$20. Company policy is to dispose
YB Sporting prints up novelty T-shirt commemorating major sportevents. The T-shirt cost $5 to make and distribute and sell for$20. Company policy is to dispose of any excess inventory after theevent by discounting the T-shirts by 80 percent, that is, sell for$4. For an upcoming event, the demand is estimated to be 12,000shirts, with a significant amount of uncertainty. Due to thisuncertainty, YB printed only 10,000 shirts. What do you think ofthis decision? What quantity would you have recommendedprinting?
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