NFL Replica Jerseys case

1. Given the uncertainty associated with player demand, how did Reebok approach inventory planning for NFL replica jerseys?

2. What should Reeboks goal be? Should Reebok minimize inventory at the end of the season? Or maximize profits? Can Reebok achieve both?

3. What is the cost of underage (marginal profit) for a dressed jersey? What is the cost of overage (marginal loss) for a dressed jersey? Calculate the marginal profits and marginal losses under the following scenarios: a) NFL doesn't use postponement strategy and makes 100% dressed jersey in China; b) NFL completes the final print of jersey in the U.S. Use the knowledge you have learned from supply contract. How will the postponement strategy affect NFL's order decision? How will the postponement strategy affect NFL, retailers, and customers?

4. Explain why postponement is an application of risk pooling.