Per case, Obermeyers initial production commitment is at least 10,000 units. To get some more understanding, we'll change this slightly, to 12,000 units. Which styles should be produced in the initial run? How many units of each style? How would the answers to these two questions change if Obermeyer's initial order must equal to 8,000?

NOTE:Make the following assumptions:(a) There is no minimum order quantity per style. (b) All styles have the same critical fractiles.

		Individual Forecasts						Average Forecast	Standard Deviation	2 x Std. Deviation
Style	Pricea	Laura	Carolyn	Greg	Wendy	Tom	Wally
Gail	$110	900	1,000	900	1,300	800	1,200	1,017	194	388
Isis	$99	800	700	1,000	1,600	950	1,200	1,042	323	646
Entice	$80	1,200	1,600	1,500	1,550	950	1,350	1,358	248	496
Assault	$90	2,500	1,900	2,700	2,450	2,800	2,800	2,525	340	680
Teri	$123	800	900	1,000	1,100	950	1,850	1,100	381	762
Electra	$173	2,500	1,900	1,900	2,800	1,800	2,000	2,150	404	807
Stephanie	$133	600	900	1,000	1,100	950	2,125	1,113	524	1,048
Seduced	$73	4,600	4,300	3,900	4,000	4,300	3,000	4,017	556	1,113
Anita	$93	4,400	3,300	3,500	1,500	4,200	2,875	3,296	1,047	2,094
Daphne	$148	1,700	3,500	2,600	2,600	2,300	1,600	2,383	697	1,394
Totals		20,000	20,000	20,000	20,000	20,000	20,000	20,000

^aObermeyer's wholesale price

Notes

Laura Kornashiewicz was marketing director

Carolyn Gray was customer service manager

Greg Hunter was production manager

Wendy Hemphill was production coordinator

Tom Tweed was a sales representative

Wally Obermeyer was vice president