Mattel has traditionally allowed ToysRUs to place two orders to meet Christmas demand. The first order is placed by the 10th of November for delivery by (American) Thanksgiving and the second order is placed by the 10th of December for delivery by December 17th. For 1999, Mattel has required all firms to place only a single order by November 10th for the entire season. Assume that ToysRUs targets a service level of 60%.

As a result of the change in Mattel's policy:

a) Do you expect the total demand ordered by ToysRUs increases/decreases/remains unchanged? why?

b) Do you expect the total profit at ToysRUs increases/decreases/remains unchanged? why?