Big10Sweater Essay

1642 Words Apr 12th, 2016 7 Pages
Analytics Exercise: Inventory Management at is a new company started last year by two recent college graduates. The idea behind the company was simple. They will sell premium logo sweaters for Big Ten colleges with one major, unique feature. This unique feature is a special large monogram that has the customer's name, major, and year of graduation. The sweater is the perfect gift for graduating students and alumni, particularly avid football fans who want to show support during the football season. The company is off to a great start and had a successful first year while selling to only a few schools. This year they plan to expand to a few more schools and target the entire Big Ten Conference within
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Last year, he was successful in getting them to invest $2,000,000 in the company (a onetime investment). There were some significant strings attached to this investment in that it stipulated that only $100,000 per year could go toward paying the salary of the two principals. The rest had to be spent on the website, advertising, and inventory. In addition, the venture capital company gets 25 percent of the company profits, before taxes, during the first four years of operation, assuming the company makes a profit.
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Your first job is to focus on the firm's inventory. The company is centered on selling the premium sweaters to college football fans through a website. Your analysis is important since a significant portion of the company's assets is the inventory that it carries.
The business is cyclic, and sales are concentrated during the period leading up to the college football season, which runs between late August and the end of each year. For the upcoming season, the firm wants to sell sweaters to only a few of the largest schools in the Midwest region of the United States. In particular, they are targeting The Ohio State University (OSU), the University of Michigan (UM), Michigan State University (MSU), Purdue University (PU), and Indiana University (IU). These five schools have major football programs and a loyal fan base.
The firm has considered the idea of making the sweaters in their own factory, but for now they purchase them from a supplier in

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