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ASE 4 . 1 Fabrics and Fall Fashions From the tenth floor of her office building, Katherine Rally watches the swarms of New Yorkers fight

ASE 4.1 Fabrics and Fall Fashions From the tenth floor of her office building, Katherine Rally watches the swarms of New Yorkers fight their way through the streets infested with yellow cabs and the sidewalks lit-tered with hot dog stands. On this sweltering July day, she pays particular attention to the fashions worn by the various women and wonders what they will choose to wear in the fall. Her thoughts are not simply random musings; they are critical to her work since she owns and manages TrendLines, an elite women's clothing company. Today is an especially important day because she must meet with Ted Lawson, the production manager, to decide upon next month's production plan for the fall line. Specif-ically, she must determine the quantity of each clothing item she should produce given the plant's production ca-pacity, limited resources, and demand forecasts. Accurate planning for next month's production is critical to fall sales since the items produced next month will appear in stores during September, and women generally buy the majority of the fall fashions when they first appear in September. She turns back to her sprawling glass desk and looks at the numerous papers covering it. Her eyes roam across the clothing patterns designed almost six months ago, the lists of materials requirements for each pattern, and the lists of demand forecasts for each pattern determined by customer surveys at fashion shows. She remembers the hectic and sometimes nightmarish days of designing the fall line and presenting it at fashion shows in New York, Milan, and Paris. Ultimately, she paid her team of six designers a total of
$860,000
for their work on her fall line. With the cost of hir-ing runway models, hair stylists, and makeup artists, sewing and fitting clothes, building the set, choreographing and re-hearsing the show, and renting the conference hall, each of the three fashion shows cost her an additional
$2,700,000
. She studies the clothing patterns and material require-ments. Her fall line consists of both professional and casual fashions. She determined the prices for each clothing item by taking into account the quality and cost of material, the cost of labor and machining, the demand for the item, and the prestige of the TrendLines brand name. The fall professional fashions include:

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