REEBOK ASSIGNMENT

Forecast
(Forecast for 2003 as of 31st March 2003)
What should inventory target be for
dressed jerseys for each player? And
blank jerseys for team?
Constraint: CMs have minimum order quantities of 1728

Costs and Revenues
Retail Price > $50.00
Wholesale Price = $24.00
Blank Jersey Cost = $9.50
Cost to dress at CM = + $1.40
Cost to dress at Reebok = + $2.40
Salvage Value for unsold Dressed Jersey = $7
Holding Cost for unsold Blank Jersey = $1.04
Salvage Value for unsold Blank Jersey
= $9.50 - 1.04 = $8.46

• Using the forecast for the New England
Partiots, what is the optimal quantity to order
for each player? For blank Jerseys? What
profit do you expect from Reebok? How much
and what type of inventory is expected to be
leftover at the end of the season?