Analytics Exercise 20-1 (Algo) Big10Sweaters.com is a new compeny stened last year by two recent college graduates. The ides behind the company was simple They will sal promumogo awestors for Big Ton colleges with ono major, unique fosture. This unique fosture is 2000 large monogram that has the customer's name, nisjos, and year of graduation. The aweater is the perfect gift for graduating students and au particularly and football fans who want to show support during the football season. The company off to a great start and has & successful first year while selling to only a few school. This year they plan to end to a few more schools and target the enteg Ten Conference within three years You have been hired by BigSweaters.com and need to make a good impression by making good supply chain decisions. This is your big opportunity with a startup. There are only two people in the fin and you are red with the prospect of possibly becoming a proctolithe tuture. You majored in supply chain (operation management in school and had a great marship at a big rear that was geling Into internet sales. The experience was great, but now you are on your own and have none of the great support that the big company hed. You need to find and ensyze your own date and make some big decisions. Of course, Rhonds and Steve, the permers who started the compeny, ere knowledgeable about this venture end they are going to help along the way Ronds had de to start the company two years ago and talked her frond from business school Stove, into joining her. Rhonda s no web marketing, has a degree in compuner science, and has been working on completing an on the MBA. She is as much an ast as a tech she can really make the weble sing Steve mgored in accounting and likes to pump the numbers. He nescione a great job of keeping the books and selling the company to some smal venture capital people in the ares. Last year, he was successful in gering them to invest $2.000.000 in the company a onctime investment. There were come agnficent strings attached to this investment in that it stipulated the only $100.000 per your could go toward paying the salary of the two principals. The rest had to be spent on the website, adverbang, and inventory. In auction, the venture capital company gets 25 percent of the company profits before tases, during the first four years of operation assuming the company make a profit Your first job is to focus on the firm's inventory. The company is cemered on selling the premum sweeters to college foorbelfens strough a webote. Your analysis is important since a significent portion of the company's assets is the inventory erit comes en The business is cycx and sales and concentrated during the period lack up to the college football season which ate August and the end of each year. For the upcoming season, the firm wants to set sweaters to only a few of the largest schools in the son of the United Sue in partida, they are largeting The Otto Sare Unvendly (OGU the Univery of Michigan Michigan State University (MSU), Purdue University PUL. and Indiens University (R). These five schools have morfol programs and a loyal fan base The firm has considered the idea of making the stars in their own factory out for now they purchase them from a cuptor in China The prices are great out service is a problem since the suppter nos a 20-week lead time for each order and the menemum order size 5,000 The order can constit of a mes of the different logos, such as 2,000 to asu 1500 for UM 750 for MSU, 500 for and 250 for Win eech logo sub lat sizes are allocated based on percentages and the suppler suggests 20 percent Xienge 50 percent lenge 20 percent medium, and 10 percent smell besed on their ristonceldas. Once an order is received a local subcompactor applies the monograms and chips the sectors to the customes They store the mventory of swasters for the company in a small arouse ao located at the subcontractor The is the company's second year of operation Last year they only said waters for three of the schools CSU, UM, and PU They ordered the minimum 5.000 siveeters end sold all of them, but the experience wes peind since they had too many UM sweaters and not enough for OSU fens Last year they ordered 2.200 06U. 1840 UM, end 900 PU sweaters. Of the 5.000 sweaters. 434 hed to be soldat steep discount on eBay after the season. They were hoping not to do this again. 434 www through way for 549 each the customer payu shipping c "Ong the cenandat each echoslinepes-of Ouring commergem 814free sur Shpoing met peating the user when the episce o bends the new price for the wees were in and on to the cost data you oho hovedeandfort 2013 The act are given. The for $123 each Semere here The end of the son ware sold tough cay for $49 cach and were not monogram Kominate the sens do cada demandao wysokou of the OSUswales toward th As for eventing the sweeters for tesson once is convessing the same poschusets par The spec The good teach game. 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They would he saw what the order anses would be You will allocate your aggagaw o da to Twinowo school based on the een school was concretoket your anaya s inde You are a howda and Smacen debatywa You conhove all the dutyou on and having the mon usowy and $50000 of buying end you know thereuse enda benet paciage for the business was about $16000 for the next year you have collected some cala relevant to the decision bro 2012 snow cost information for the product purchased from the suppen Cha Here we see that the cost for each sweater deered to It waretouse of our managing Subcontacto for each of the five schools we are largeting the suppler around Apr 1for the upcoming football season S6603. The prices and for any quay that we order above 5,000 awwas Tr order can be a mes of water 20 www to process the order so the order needs to be placed EXTE 2012 SERIES DOST 24 UMATION FOR THE 016 104 SCHICKS det $36.00 12.5 3.35 1.1 2.48 1.48 pre in $5.00 5.00 www.comm 10.9 HORECAST TAP THE 32 TO SHAR LAST YEAR'S MORK'S STREMID ARCAN FOOTBALL RE ATTENANCE 245,000 ACTOR SALES FULL PROCE 4,04 SEVE'S FORSTO NOT YEAR 2.200 NEXT YERK www PR FRASTR NEXT YEAR 4, 4,MIK 1,5 WYCHCE FORCAT OC LAK 486 300,900 1,013 1,00 1.40 200 1.000 ww Farcus w, SM wis. 3, IN NE 1,141 1,718 4 1,10 10 149 w w 201 # 1.000 M 611 31,401 India Yew Male Kun 10 ba Te 111 7214 *0,4 36.30m Se 24,194 Keres Sesters rathe 85,00 LAVE www 201 Lone a. Wat was the not pra-ta profit for their business last year, efter deducting salary and overmoad? (Do not round Intermediate calculations. Round your answer to the nearest dalle amount) www If they must pay 50% in texas afor deducting their venture capital firm payment, what was the increase in cash hershor business accrued last year? (Do not round Intermediate calculations. Round your answer to the nearest deler amount.) Inca Charter Natera cad Tatat Spr g's f Freigh I sty, Ter material Abor Tractor cont Tete ( Exer 2013 LO STAT che state act