1. Speculative Production Capacity Reactive Production Capacity
Production Planning
Speculative Production Capacity
Reactive Production Capacity
Retail Selling
Initial Forecast
Las Vegas Orders
November
March
September

2. Criteria for Ordering Less Risky Styles in November
Order styles with the lowest uncertainty (standard deviation)
Order styles with the highest demand (mean)
Order styles with the lowest price (wholesale)
Order styles with demand that is more than twice the minimum production quantity

3. First Period Production Quantity
Style
Mean
2*S.D.
First period production
First period production – using heuristic
Seduced
4017
1113
2904
3052
Assault
2525
680
1845
1706
Electra
2150
807
1343
1252
Anita
3296
2094
1202
2026
Daphne
2383
1394
989
1329
Entice
1358
496
862
600
Total
9145
10032

4. Reduce Constraints REDUCE MINIMUM LOT-SIZE CONSTRAINTS
Lean manufacturing
More efficient cutting equipment (for smaller lots)
Invest in worker cross-training
INCREASING REACTIVE CAPACITY
Longer work force hours during peak season
Use more subcontractor capacity during peak season
Increase total Alpine capacity
Reduce manufacturing and raw material lead-times
Use common components, e.g., zippers, rings
Invite most representative retailers for January “Early-Write”