Please download the file associated with this Case Study and use it to solve the case.

You will deliver two files:

When you are finished, you will upload two files:

1. Word Document (3 pages) with the following…

Page 1: Cover page

Page 2: One-page executive summary

Page 3: Charts, and Graphs to support your decision.

Copy and paste the charts from Excel, here. Do not use screenshots or pics of the charts.

2. Excel file showing the work you did on this project.

Here is a video explanation that could help you with this assignment:

Note: There is no Excel file associated with this one. You will need to do all the work from scratch.

Bazinga, Inc. New Product Introduction

BUS 322Ã¢â‚¬â€Project 2

You did such a good job on the last case, you have been selected to evaluate the

introduction of a new line of T-Shirts. Many of them have generic superhero logos

on them and can be sold anywhere. One shirt, however, is iconic. The Bazinga Tshirt, made popular by the owner of Bazinga, Inc. is the target this time.

The all cotton, long-wearing T-shirt needs to be on store shelves by Nov 11 to take

advantage of the upcoming Holiday Shopping Season. Therefore, you have a hard

deadline of November 2 to get this report done. Any delay will result in a 10%

reduction in your fee (grade) for this project. No exceptions.

As with other products, Bazinga faces the decision of how many T-shirts should be

ordered for the upcoming season. As any good CEO would, Mr. Cooper has decided

to get the input of his management team. Each of them has recommended the

following quantities be ordered.

Manager

Amy

Bernadette

Howard

Leonard

Penny

Raj

Suggestion

500,000

450,000

400,000

350,000

300,000

250,000

As you can see, this wide range of suggestions indicates considerable disagreement

between the management team as to how many should be ordered. They just cannot

agree on the market potential for these T-Shirts. Of course, this is to be expected

with this group.

The thing is, the production manager, Leslie Winkle, really has no idea how many TShirts to make. After all, she is a designer by training, not an analyst. What she really

wants to avoid is extremes. She does not want to be left holding excess merchandise.

This means she will have to sell these at a loss. Also, she does not want a stock out

where demand exceeds supply and she leaves money on the table, either.

Leslie reckons that she can use the previous sales as a starting point for the sales of

the T-shirt. Last year, a similar T-shirt with a Soft Kitty theme on them sold quite

well. Leslie wants you to use the average sales and standard deviation to figure out

the probability of a stock out for each of the managersÃ¢â‚¬â„¢ recommendations.

The Sales Manager, Stuart Bloom, has figured out that he can sell the T-Shirts for

$25 each. He also knows that if he does not sell them retail, he can sell them

wholesale for $10 each. Finally, he tells you that the cost of each shirt is $15.

Bazinga, Inc. New Product Introduction

BUS 322Ã¢â‚¬â€Project 2

So, what should you do with all of this data? Well, you need to make some sense of it

all. HereÃ¢â‚¬â„¢s what I would doÃ¢â‚¬Â¦

1. Use the managersÃ¢â‚¬â„¢ predictions to figure out what the expected value and

standard deviation would be if these were the actual sales figures.

2. Use that expected value and standard deviation to develop a normal

distribution graph (curve) that you can use to analyze the data.

3. Using the SWAG method, the CEO believes that the best-case scenario is

selling 560,000 units. The most likely scenario is to sell 390,000 units. The

worst-case scenario is to sell on 228,000 units. Develop the probability of a

stock out for each of these three cases along with the profit projections

associated with each one. That is, how much profit will we make if we

actually sell all of these T-Shirts?

4. Then, using the worst-case, most likely case, and the best-case scenarios

develop the profit projections for each of the managersÃ¢â‚¬â„¢ recommendations.

For instance, Raj thinks we should make 250,000 T-shirts. If we make

250,000 and only sell 228,000, we will have to sell 22,000 at a loss. So you

will need to take this into account.

5. The CIO, Cooper Hoefsteder, has decided that the potential for this product is

so great that he would like to make sure that they have only a 25% chance of

a stock out and a 75% chance of meeting demand. How many would we need

to make under these conditions? What would be the profit projection if we

made this number under the worst-case, most-likely, and best-case

scenarios?

6. Ms. Winkle needs to know how many T-Shirts to make. Therefore, it is up to

you to make a decision. You must decide how many T-Shirts to make. You

must back this number up with hard and fast analysis. Bottom line: come up

with a number. Do not hedge your bets. This must be a single number that

the production line can use to make the T Shirts.

In you managerial reportÃ¢â‚¬Â¦

Page 1: Cover Sheet

Page 2: Executive summary of your findings. Tell me what our expected profits will

be under the different scenarios, etc. and all of the findings you have. Do not just

copy the questions and answer them. Charts and graphs are okay, but explain them

as though the person reading it knows nothing about what you are doing.

Page 3+: Appendices with the graphs and tables showing your numbers.

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