2. Valles Galactic Industries has recently purchased an electrical components manufacturer. This company makes 12 products are further grouped into four product families. Products A, B, and C comprise family 1: D, E, and F comprise family 2: G, H, and I comprise family 3: and products J, K, and L make up family 4. VGI has the following exponential smoothing forecasts of monthly demand for each product.

Family	Product	Forecast	$/Unit	Family	Product	Forecast	$/Unit
1	A	10	$1,000	3	G	100	$ 250
	B	15	1,200		H	180	100
	C	20	900		I	220	100
2	D	5	5,000	4	J	2	10,000
	E	3	7,000		K	4	9,000
	F	2	9,000		L	3	8,000

The VGI sales force has also come up with monthly forecasts of sales for each product family.

Family $ sales

1. $60,000
2. 70,000
3. 85,000
4. 75,000

A) The CEO and her associates in the C-suite have independently set a $700,000 overall monthly sales goal for the company. Roll up the individual product forecasts and compare them with the family data. Use a spreadsheet and the family forecasts to revise the individual item forecasts (in both dollars and units).

B) Roll up the individual product forecasts to the top level, compare these to the overall sales goal, and roll the goal back down to families and to individual unit forecasts (dollars and units).

C) Youve probably noticed that top managements goal in a) seems to be quite different from the other forecasts. Briefly discuss your alternatives when you meet with the C-suite crowd.