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Discussion .
Storage .
SS always produce each order well in advance of dispatch so that there will always be a certain amount of finished goods in stock. From a marketing perspective a necessary amount of stock is essential for the risk management as the existence of contingency situations (e.g. Provisional change of orders). As there is $2,803,815 stock loss occurred in tracking misplaced and/ or lost item, the amount of stock is essential to cover these losses in order to maintain customers. In this case, the extra storage space seems absolutely necessary due to the over amount of stocks on hand. However, there is a trade-off between the customers' satisfaction and the corporation cost. Hiring more storage space will unquestionably increase the expense which will reduce the total profit of SS. Therefore we intend to introduce a 'just-in-time' process to SS's manufacturing and delivery system. .
According to the JIT process, SS could control each order from the stage of manufacturing of the productions so that the amount of stock on hand can be minimized. SS only need to manufacture the amount of shirts by following the order the customers required instead of manufacturing extra stocks in advance. .
However, the JIT process requires a higher management quality which could increases the management expenses. And for corporations like SS, the cost of adopting JIT process may exceed the loss without adopting the process. Therefore, we introduce a partially JIT process. The customer groups of priority and team are mainly focus on the major sport events and specific teams and clubs, whose orders are associated with the annual game schedules, can provide relatively stable orders every year (less possibly of changing orders). And those customers are more profitable to SS as they can provide positive profit and also provide the advertising effects (as these sports events generate a great deal of TV coverage).
