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YB Sporting Apparel print up novelty T-shirts commemorating major sports events (e.g. the Super Bowl, the World Series, NCAA championship game, etc.) The T-shirts cost $5 to make and distribute and sell for $20. Company policy is to dispose of any excess inventory after the event by discounting the T-shirt by 80%, that is, sell them for $4. In 1994, YB printed shirts for the World Cup soccer playoffs in Chicago. It estimated a demand at 12,000 shirts, with a significant amount of uncertainty. Because of uncertainty, YB printed only 10,000 shirts. What

Operation Management, Management Studies

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