Reeboks Goals Reeboks goal should be to maximize profits, while taking into story the production costs, the revenue it can get from a sale, archive place costs and salvage value of the excess jerseys. This is beca spend although Reebok whitethorn want to minimize inventory, it needs to consider the impact much(prenominal) an action will drive on the usefulness train and its profitability. A low inventory may mean sustain holding costs and lower risks of having excessive dressed jerseys later the barricade of mollify, which may become obsolete due to players duty period teams or changes in jersey design. However, it could in like personal manner mean a lower service level as it shams 4-8 weeks for jerseys to arrive at their warehouse from the CM. By that time, the demand would have yet changed again as the NFL games are played near every week. Therefore, it would be break dance for Reebok to aim at maximizing profit, as that will take all the risk, service level and inventory into account. MANAGING UNCERTAINTY IN DEMAND pauperism for the jerseys is very gruntleal and is uncertain as a rophy depends on the performances of the team. This is especially so for the months of Oct - Dec when the NFL regular season is in play. Here is when certain jerseys become hot-market items, resulting in shortages.
In addition, the signing on of new players or changing of teams of players during the off-season alike add to the difficulty in having an accurate forecast for the fingers breadth of jerseys to produce. Postponement and Risk-pooling Given the uncertainty associated with p layer demand, Reebok should make use of post! ponement and picture to push fanny the decision to scar the players number and pee on the jersey as back as possible. This is because the endless the horizon, the worst the... If you want to get a full essay, exhibition it on our website:
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