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Each new product in this market has a great chance to fail or succeed. So great volatility.
- Trend watching gives the best indication what the market demands.
- Only the 10.000 units for the first order have to be determined. The other 10.000 units can be ordered after the Las Vegas fashion show.
In this stage with less information available, all supportive decision information is useful. One of the available information sources is the “sample buying committee forecasts”. Based on the Standard Deviation information, we’re able to forecast the demand in a slightly reliable way. As Wally mentioned, SD of demand is twice the SD of the forecast per style...
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