This report was commissioned to examine a decision regarding the number of shirts to produce for the rock concert, scheduled to be staged in two months and calculate the financial outcomes while maximizing the profit.
The research draws attention to two uncertain events, Mr. George Lassiter faced. Firstly Mr. Lassiter has no idea in the number of people attending the concert and secondly about the percentage of attendees who would buy his shirts. George Lassiter is a project engineer for a major defense contractor and also an entrepreneur who manufactures and designs special events T-shirts. He has owned this lucrative T-shirt business for six years and designed T-shirts for “special events” such as rock concerts, major sporting events, and …show more content…
Lassiter should order for a rock concert that was scheduled in two months? The major problem was the uncertainty about the number of people attending the concert and the percentage of attendees who will purchase his shirts. The decision will be based on the number of people standing around the stage and the number of grandstand seats that would be sold. Moreover, the decision should be made considering all the possible probabilities with the objective of maximizing profit.
Possible Decision Alternatives There are multiple alternatives Mr. Lassiter can take depending upon the number of seats sold and the percentage of the attendees who will buy one of his shirts. He was certain that about 20,000 tickets will be sold for the standing area around the stage but was unknown about the number of grandstand seats to be sold. He believed that the grandstand seats will be based on three probabilities; high, medium and low sales which could be 80,000, 50,000 and 20,000 respectively. Moreover, his decision could be based on a cost estimates and order size (10,000, 7,500 and 5,000) from silk screener/shirt supply house. Before making the decision he should consider all the financial outcomes and volume of sales that will range from 5 to
The research draws attention to two uncertain events, Mr. George Lassiter faced. Firstly Mr. Lassiter has no idea in the number of people attending the concert and secondly about the percentage of attendees who would buy his shirts. George Lassiter is a project engineer for a major defense contractor and also an entrepreneur who manufactures and designs special events T-shirts. He has owned this lucrative T-shirt business for six years and designed T-shirts for “special events” such as rock concerts, major sporting events, and …show more content…
Lassiter should order for a rock concert that was scheduled in two months? The major problem was the uncertainty about the number of people attending the concert and the percentage of attendees who will purchase his shirts. The decision will be based on the number of people standing around the stage and the number of grandstand seats that would be sold. Moreover, the decision should be made considering all the possible probabilities with the objective of maximizing profit.
Possible Decision Alternatives There are multiple alternatives Mr. Lassiter can take depending upon the number of seats sold and the percentage of the attendees who will buy one of his shirts. He was certain that about 20,000 tickets will be sold for the standing area around the stage but was unknown about the number of grandstand seats to be sold. He believed that the grandstand seats will be based on three probabilities; high, medium and low sales which could be 80,000, 50,000 and 20,000 respectively. Moreover, his decision could be based on a cost estimates and order size (10,000, 7,500 and 5,000) from silk screener/shirt supply house. Before making the decision he should consider all the financial outcomes and volume of sales that will range from 5 to