Reebok Nfl Replica Jerseys: a Case for Postponement

Reebok NFL Replica Jerseys: A Case for Postponement

“This time of year is a little too exciting for us. I have a warehouse full of jerseys out there and retailers are screaming for the

teams and players I don't have! Every year, it seems like we have the right mix of inventory going into the season, and then

some team that no one expected to do well gets off to a 4-0 start, and the team everyone expected to contend for the Super

Bowl is losing games. Suddenly I have 1000s of jerseys I can't sell and 1000s of orders I can't fill.”

Tony is responsible for the inventory of NFL replica jerseys that Reebok maintains in their central distribution center. It is early

October, and the NFL season is well underway. “No wonder we call this the chase; I feel like I have been running for months; I'm

exhausted. I wish there was some way to plan inventory that would allow me to react faster to hot players and teams. But with player

demand changing so much from year to year, I really can't increase inventory; in fact I like to minimize inventory at year-end.”

BACKGROUND

Reebok International Ltd. is headquartered in Canton, Mass. The company employs approximately 7,400 people, and is widely known

for their sports apparel and footwear brands. Reebok was a small British shoe company in 1979, when Paul Fireman acquired the

exclusive North American license to sell Reebok shoes.4 In 1985 Reebok USA acquired the original British Reebok, and Reebok

International went public. Reebok in 2003 had total revenues of $3485 M and realized income from operations of $157 M. Paul Fireman

continues to be the chairman and CEO.

In December 2000 Reebok signed a 10-year contract with the National Football League (NFL) that granted an exclusive license to

Reebok to manufacture, market, and sell NFL licensed merchandise including on-field uniforms, sideline apparel, practice apparel,

footwear, and an NFL-branded apparel line. The National Football League is the premier professional league...