DECISION 2: LIMITED EDITION SHIRT SALES
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It is January, 2023, midway through the 2022-2023 season. Real Madrid are top of the league in Spain and have qualified to the knockout rounds of the Champions League, which are slated to begin in mid February, around Valentine's Day time. In fact, Real Madrid are scheduled to face English side Liverpool on Valentine's Day. To utilize this opportunity, the club are releasing a limited edition Valentine's Day kit that will be worn by the players on the day of the game. The kit will be a one-time thing and will be sold exclusively at the club's official shop in Madrid. The kits will be produced by the club's supplier in Germany at a cost of €20 per shirt to be sold for €50 each. Due to the esoteric nature of the kits, the club is uncertain about potential demand for them and has doubts about how many to order. The club plans to offload any unsold shirts at a discount for €10 each.
Further, Germany has been crippled by heavy snow for the past week. The inclement weather has brought about concerns for safety and transportation difficulties that have forced most schools and businesses to close. More crucially, aviation services have also been impacted by the storm, with several flights out of Germany either delayed or cancelled.
Naturally, shipping has also taken a hit. Weather forecasts predict the storm subsiding over the next week. However, the supplier has informed Real Madrid that delivery may be delayed beyond the agreed-upon date of February 10. In the event of a delay, the shirts are expected to arrive on February 20.
The possibility of delay presents Real Madrid with another dilemma. By February 20, Valentine's Day will have passed, the club will have played Liverpool, and the hype behind the match will have dwindled. With that in mind, the club expects demand for shirts to drop significantly, with club analysts believing demand will be reduced by 50%.
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