Reebok

Since the players demand for NFL replica jerseys are uncertain, Reebok should incorporate the following characteristics of the supply chain to effectively plain their inventory to provide a significant service level;

a. Forecasting tools should be used to ascertain the average demands of the players and teams based on the historical data and also of the variability demand of the players.

b. Lead time for replica and undressed jerseys for replenishment.

c. The length of the planning horizon.

d. Costs, including ordering cost and inventory cost for holding of NFL replica jerseys.

e. Service level requirements. Due to uncertain demand from the players, Reebok have to specify an acceptable level of service, since it cannot meet 100% demands of the players.

2. What should Reebok’s goal be? Should Reebok minimize inventory at the end of the season? Or maximize profits? Can Reebok achieve both? What Service level should Reebok provide to its customers?

ANS- The goal of Rebook should be to provide quality products at the right time at the right quantity.

Yes Reebok should minimise the inventory at the end of the season to reduce the inventory holding cost and also the risk associated with holding of leftover at this end and thereby maximizing the profit.

Yes if Reebok can accurately forecasts its demand for the upcoming season.

Although its impossible to provide 100% service level due to uncertain in the demand, however, Reebok should provide a highly significant service level to its customer order.

3. Are the models in section 2.2.2 helpful here? What is the cost of underage for a dressed jersey? How might Reebok decide between dressed jerseys and blank jerseys?

ANS- Yes the model aids in...