Reserves: In this assignment you will develop best and worst case scenarios for your next round. You need to balance two risks $--$ the risk of missed sales because of stock outs, and the risk of building too much inventory. In your worst case, competition is fierce and you end up carrying lots of inventory. In your best case, you sell everything but one unit on each product. If you add the Balance Sheet's Cash and Inventory together, you get a sense for the reserve portion of your current assets. A big reserve earns you nothing, not even bank interest, and costs you interest expense and $($in the case of inventory$),$ carrying costs. $.$ Therefore, you want to keep the reserve as small as possible. With a perfect forecast, your reserve could be tiny. Better forecasting $=$ smaller reserve. The simulation prepares a set of proforma financial statements automatically. These can be used to develop a best$/$worse case set of scenarios. First you need a method to develop a best$/$worst case for a product. You will find a discussion in the Team Member Guide, Chapter $10.$ There is also a tutorial How to Develop a Sales Forecast. Start by entering decisions as usual. Develop a set of decisions for each product in R&D$,$ Marketing, and Production. As pointed out in the tutorials, the computers unit sales forecast is unreliable, because the computer does not know what competitors have done. Instead it assumes a mediocre product from every competitor in every segment. The computers forecast is useful for sensitivity analysis.