Question 2 : Identify the factors causes uncertainty in supply of jersey.

a. Uncertainty in the demand of jersey. Sales fluctuate with time. b. Sudden ups and down of the performance of team increases or decreases the demand of market. c. Hot market demand. d. Capacity problems; need two separate machine to complete a blank jersey. e. Retirement of players. f. For the transportation problem here the company can use the mixed strategy of air , road, and rail transportation. For the hot items which are expected to deliver within a short lead time they can use air transportation system. g. Forecast of inventory needed to fulfill the demand of next year. This forecast is not easy because of uncertainties of demand. Any wrong anticipation will rise the inventory cost.

Question 3: Discuss the practice of postponement strategy mentioned in the case.

Two types of postponement strategy the company is following: a. Labeling postponement. b. Time postponement.

Here the company is using labeling postponement strategy. Because the companies dont know the exact demand because of the influence of some related factor demand may fluctuate. And those factors are: 1. Performance of players. 2. Players changes team. 3. Hot market demand. So for these factors the company decides to make black jersey as a postponement strategy. According to the demand they just print the number to the blank jersey and deliver for the distribution.

And again the company is also using the time postponement strategy. The jersey which remains unsold the company store those for next year. They sell those in next year. In this case they are using time postponement strategy. But if the team changes design of jersey then time postponement will be useless.