Questions 1. Production planning decision: using the data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. Assume that all ten styles in the sample problem are made in Hong Kong. Assume, for simplicity, that all styles have the same wholesale selling price, say $100. For this analysis, forget that there will be another opportunity to produce. Finally, their use of the standard deviation is specific to their historical analysis. For this class, we will use their approach, which employs the 2 x Std. Deviation column in Exhibit 10. Use this number for the standard deviation in the NORM.INV formula. For the remainder of the course, we will simply use the given standard deviation, not the standard deviation x 2. a. First, assume that there are no constraints on the total production commitment or on any individual style. How many units should Wally order during the initial production phase? b. Now assume that Obermeyer's initial production commitment cannot exceed 10,000 units. How many units should Wally order during the initial production phase? Exhibit 10 Sample Buying Committee Forecasts, 10 Styles of Women's Parkas Individual Forecasts | Average Standard Forecast Deviation 2 x Std. Deviation Style Laura Carolyn Greg | Wendy | Tom Wally Gail $110 900 1,000 900 1,300 800 1,200 194 388 1,017 1,042 Isis $99 800 700 1,000 1,600 950 1,200 323 646 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 1,100 950 1,850 1,100 381 762 1,000 1,900 Electra $173 2,500 1,900 2,800 404 807 1,800 950 2,000 | 2,125 2,150 1,113 Stephanie $133 600 900 1,000 1,100 524 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 2,094 1,047 697 2,383 1,394 2,600 20,000 2,300 20,000 1,600 20,000 20,000 Daphne $148 1,700 3,500 2,600 Totals 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 Questions 1. Production planning decision: using the data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. Assume that all ten styles in the sample problem are made in Hong Kong. Assume, for simplicity, that all styles have the same wholesale selling price, say $100. For this analysis, forget that there will be another opportunity to produce. Finally, their use of the standard deviation is specific to their historical analysis. For this class, we will use their approach, which employs the 2 x Std. Deviation column in Exhibit 10. Use this number for the standard deviation in the NORM.INV formula. For the remainder of the course, we will simply use the given standard deviation, not the standard deviation x 2. a. First, assume that there are no constraints on the total production commitment or on any individual style. How many units should Wally order during the initial production phase? b. Now assume that Obermeyer's initial production commitment cannot exceed 10,000 units. How many units should Wally order during the initial production phase? Exhibit 10 Sample Buying Committee Forecasts, 10 Styles of Women's Parkas Individual Forecasts | Average Standard Forecast Deviation 2 x Std. Deviation Style Laura Carolyn Greg | Wendy | Tom Wally Gail $110 900 1,000 900 1,300 800 1,200 194 388 1,017 1,042 Isis $99 800 700 1,000 1,600 950 1,200 323 646 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 1,100 950 1,850 1,100 381 762 1,000 1,900 Electra $173 2,500 1,900 2,800 404 807 1,800 950 2,000 | 2,125 2,150 1,113 Stephanie $133 600 900 1,000 1,100 524 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 2,094 1,047 697 2,383 1,394 2,600 20,000 2,300 20,000 1,600 20,000 20,000 Daphne $148 1,700 3,500 2,600 Totals 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