Case 24 George's T-Shirts
Case 24 George’s T-shirts
Executive Summary
George Lassiter is project engineer for a major defensive contractor. For the last six years George has enjoyed an interesting and lucrative side business while designing, manufacturing, and hawking special event T-shirts. Some of these events include rock concerts, major sporting events, and special fund-raising events. His idea was very recognized within the community because his products were not only cheap but they were also cleverly designed and well produced. The shirts were sold in the streets surrounding the arenas and in the nearby parking lots with the appropriate licenses from the local authorities. George had a regular crew of vendors to whom he sold the shirts on consignment for $100 per …show more content…
Accordingly a decision can be taken. Hence we need to evaluate the expected outcomes of the different decisions.
This can be done by finding expected values, which can be calculated taking the probabilities of the outcomes and their return.
Let us assume that the decisions are of ordering 5000, 7500 and 10000 pieces of t-shirts.
Let us denote them by D1, D2 and D3.
Let us start with evaluating D1
If Lassiter orders for 5000pc
Cost of T shirts-$17750
For the number of Grand seats sold, we need to estimate a number. We know the probabilities of three figures-
High= 80000 p=p1 (aprrox.3, somewhat higher than .25)
Medium= 50000
Executive Summary
George Lassiter is project engineer for a major defensive contractor. For the last six years George has enjoyed an interesting and lucrative side business while designing, manufacturing, and hawking special event T-shirts. Some of these events include rock concerts, major sporting events, and special fund-raising events. His idea was very recognized within the community because his products were not only cheap but they were also cleverly designed and well produced. The shirts were sold in the streets surrounding the arenas and in the nearby parking lots with the appropriate licenses from the local authorities. George had a regular crew of vendors to whom he sold the shirts on consignment for $100 per …show more content…
Accordingly a decision can be taken. Hence we need to evaluate the expected outcomes of the different decisions.
This can be done by finding expected values, which can be calculated taking the probabilities of the outcomes and their return.
Let us assume that the decisions are of ordering 5000, 7500 and 10000 pieces of t-shirts.
Let us denote them by D1, D2 and D3.
Let us start with evaluating D1
If Lassiter orders for 5000pc
Cost of T shirts-$17750
For the number of Grand seats sold, we need to estimate a number. We know the probabilities of three figures-
High= 80000 p=p1 (aprrox.3, somewhat higher than .25)
Medium= 50000