The file below contains demand and forecast data for 84 items Suppose that these are the data that LL Bean will use to plan their next season Consider an item that retails for $45 and costs LL Bean $25 The liquidation price for this item is estimated to be $15 The sales forecast for this item is 12,000 units What order quantity should LL Bean choose for this item (Follow the method outlined in the L L Bean case using the Actual Forecast ratios ) Hint There are many ways to arrive at the correct answer One way involves the use of the PERCENTILE function in Excel Even if you have not used this function before, it is easy to learn Item Number Forecast Actual Demand 1 1153 768 2 205 33 3 1135 928 4 285 359 5 1930 2417 6 1800 1962 7 202 1 8 705 725 9 754 1043 10 466 176 11 805 533 12 1212 1340 13 740 1067 14 1103 508 15 1504 1890 16 1567 1387 17 1028 807 18 198 235 19 1608 1256 20 1523 765 21 351 541 22 840 419 23 1012 1223 24 114 77 25 1864 1807 26 3986 3433 27 2627 2935 28 2703 2952 29 4750 4722 30 3177 3582 31 3740 3574 32 2062 2668 33 2542 2619 34 4897 6131 35 2588 3109 36 3150 2976 37 3323 3325 38 2575 2349 39 4858 4589 40 2483 2153 41 2734 2699 42 2970 2764 43 4543 4962 44 3395 3771 45 2686 2322 46 2311 3089 47 4544 5416 48 2823 2700 49 2095 2069 50 2529 3206 51 5169 5701 52 6678 7456 53 7986 8954 54 7315 6135 55 9083 9183 56 9043 10514 57 8680 8661 58 5099 6533 59 5946 7080 60 6522 6088 61 9942 12060 62 8203 7351 63 7502 8736 64 8939 11138 65 7753 8288 66 7522 7275 67 9099 7522 68 9218 10215 69 6067 5452 70 7495 8772 71 7937 6956 72 9753 9403 73 6902 6849 74 7089 6303 75 8948 7872 76 11850 15300 77 10629 9323 78 10933 11407 79 15671 18126 80 11207 10337 81 14436 10700 82 16147 17391 83 16890 16892 84 18652 17873

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Question: The file below contains demand and forecast data for 84 items. Suppose that these are the data that LL Bean will use to plan their

The file below contains demand and forecast data for 84 items. Suppose that these are the data that LL Bean will use to plan their next season. Consider an item that retails for $45 and costs LL Bean $25. The liquidation price for this item is estimated to be $15. The sales forecast for this item is 12,000 units. What order quantity should LL Bean choose for this item? (Follow the method outlined in the L.L.Bean case using the Actual/Forecast ratios.) Hint: There are many ways to arrive at the correct answer. One way involves the use of the PERCENTILE function in Excel. Even if you have not used this function before, it is easy to learn.


Item Number	Forecast	Actual Demand
1	1153	768
2	205	33
3	1135	928
4	285	359
5	1930	2417
6	1800	1962
7	202	1
8	705	725
9	754	1043
10	466	176
11	805	533
12	1212	1340
13	740	1067
14	1103	508
15	1504	1890
16	1567	1387
17	1028	807
18	198	235
19	1608	1256
20	1523	765
21	351	541
22	840	419
23	1012	1223
24	114	77
25	1864	1807
26	3986	3433
27	2627	2935
28	2703	2952
29	4750	4722
30	3177	3582
31	3740	3574
32	2062	2668
33	2542	2619
34	4897	6131
35	2588	3109
36	3150	2976
37	3323	3325
38	2575	2349
39	4858	4589
40	2483	2153
41	2734	2699
42	2970	2764
43	4543	4962
44	3395	3771
45	2686	2322
46	2311	3089
47	4544	5416
48	2823	2700
49	2095	2069
50	2529	3206
51	5169	5701
52	6678	7456
53	7986	8954
54	7315	6135
55	9083	9183
56	9043	10514
57	8680	8661
58	5099	6533
59	5946	7080
60	6522	6088
61	9942	12060
62	8203	7351
63	7502	8736
64	8939	11138
65	7753	8288
66	7522	7275
67	9099	7522
68	9218	10215
69	6067	5452
70	7495	8772
71	7937	6956
72	9753	9403
73	6902	6849
74	7089	6303
75	8948	7872
76	11850	15300
77	10629	9323
78	10933	11407
79	15671	18126
80	11207	10337
81	14436	10700
82	16147	17391
83	16890	16892
84	18652	17873

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