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Problem 1 (15 points) Due to their long and global supply chain, LL Bean faces long production lead time from their suppliers. As a result,
Problem 1 (15 points) Due to their long and global supply chain, LL Bean faces long production lead time from their suppliers. As a result, the procurement department must order inventory months before the selling season starts, under significant demand uncertainty. For the same reason, LL Bean has only one opportunity to make the ordering decision for each item. Before placing the orders, experienced inventory managers and buyers would meet and discuss what would be appropriate point forecast for each item. Overall the years, the inventory managers noticed that the forecast errors, measured by ratio between the actual demand and forecasted demand (A/F ratio), of all 30 classic items are similar and comparable, in the sense that no item's forecast error has been consistently smaller or larger than others. The attached excel sheet has the point forecast and actual demand of the 30 classic items from last year. The following table contains this year's demand forecasts and other related information about items 1 and 3 . How many units of items 1 and 3 should LL Bean order, respectively
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