Case Study Football Team
Sales vary from opponent to opponent and how well the team is doing that year. However, he does know that running out is a very bad idea. This football team is not only expected to make money for SSW, but It is also entertainment. This means programs for all who want them. With the new facility, attendance could be 60,000 for each of the five home games.
And two of every three people buy a program. In Dalton to the programs, Maddox must purchase the Inserts for each game. The Inserts have Information about the opposing team, photos of the expected starters, and recent game statistics.
The purchasing issue is the same for inserts, except inserts will be purchased separately for each game and are a total loss after the game. The carrying cost, because inserts are to be delivered just as they are needed, should be nominal; he estimates 5%.
The other costs and the same discount schedule apply, but the inserts only cost half as much because they are much smaller. First Printing will give the same 10% discount on the inserts. Givens: Annual demand is 300,000 (60,000 per game times 5 games) set-up cost for programs s $1,000. 00 Holding cost .
Maddox focuses on purchasing the game economically with a strong focus on quality printing, there are different program that Maddox can pursue different programs, within strong focus on first printing, Maddox. Muddy has high carrying cost because he lacks a good place to store the programs.
He can’t put them in the office, or store them down in the maintenance department, where they may get dirty and damaged. So, the company needs to focus on reducing the carrying cost so as to have profits. Maddox needs to focus on inserts as well for the programs, so as to increase its revenue and sales.