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We can further take the data and find out what the mismatch costs are for each style. To clarify, mismatch costs are the sum of the lost profits due to lost sales and total losses due to leftover inventory.
Looking at the first option, Sport Obermeyer must figure out what styles will be popular two years later and how much of each style to produce. After they submit off their desired production runs, they attend the Las Vegas trade show to receive feedback on those styles just submitted. This is a large cause for leftover inventory and lost sales. One way to look at this is as if Sport Obermeyer submitting a heavily-graded homework assignment, then after the submission, seeking professional feedback...
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