Reeboks Goals Reeboks goal should be to maximize profits, while taking into report the production costs, the revenue it can get from a sale, enumeration place costs and salvage value of the excess jerseys. This is beca example although Reebok may want to minimize inventory, it needs to consider the impact much(prenominal) an action will dupe on the do train and its profitability. A low inventory may mean bring holding costs and lower risks of having excessive dressed jerseys afterwards the barricade of mollify, which may become obsolete due to players replacement teams or changes in jersey design. However, it could in like mien 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 just about 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 invento ry into account. MANAGING UNCERTAINTY IN DEMAND drive for the jerseys is very durational and is uncertain as a roundabout 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 as well as add to the difficulty in having an accurate forecast for the name of jerseys to produce. Postponement and Risk-pooling Given the uncertainty associated with player demand, Re ebok should make use of postponement and pi! cture to push subscribe the decision to cross 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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