The report is intended to be an advisor report for the inventories manager about the process and means of meeting unanticipated growth in the next year. To evaluate the company’s competitive advantages and to identify the factors that can overcome different manufacturing problems, it is important to reflect on its history.
Reebok should manage the Inventory Plan to make replica NFL jerseys. Take into account the role of the newsvendor. What is the cost of underage for a dress jersey? What is the cost of overage on a dress jersey? Reebok would choose between dressed and blank jerseys. It is hard to determine demand due to availability of multiple elements. With a focus on companies offering a wide range of products, demand and supply are combined. Reebok has no idea how many of each individual athlete’s jerseys it will be selling. When demand is uncertain, it becomes difficult to foresee the forces a company may employ to achieve particular objectives (Chatterji & Levine, 2016). Black jerseys, in this instance, are shipped further down the supply chain than other colors. A shop can customize the jerseys to meet client needs. This will result in less Reebok jersey safety stock. The organization needs to analyze market segments with highly variable demand patterns in order for it to predict future demand. Newsvendor models, which include demand variability, show that replica jersey businesses and seasonality can play an important role in providing the necessary inputs for the diverse market. Reebok is focused on analyzing the changing demand patterns of different jerseys. For example, NFL seasons see a rapid rise in demand. Sales increase in August or September because of anticipation of next season. The expectation of the next season and possible playoffs may influence consumer demand. The season ends, and there’s a decline in consumer demand. This has an adverse effect on financial performance. Reebok has to optimize profit depending on whether there is a hot marketplace and minimize obsolescence.