Question
L.L. Bean, Inc. Case Questions 2.Consider the procedure that L.L. Bean employs (using past demand data and a specific item forecast, and appropriate costs and
L.L. Bean, Inc. Case Questions
2.Consider the procedure that L.L. Bean employs (using past demand data and a specific item forecast, and appropriate costs and described in Page 4 of the case) to decide how many units of that item to stock. The Excel spreadsheet that accompanies this document on Moodle provides forecast and demand data from last year for some of L.L. Bean's products. Suppose this is the data that L.L. Bean is using to determine stocking quantities this year. Then, how many units should L.L. Bean stock of a "one-shot" commitment item with a forecast of 12,000 that retails at $45, costs $25, and has a liquidation value of $15? Clearly justify your answer.
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