Example of Bloomingdale The store manager at Bloomingdale's orders in lots of 600 purses Demand for purses at Bloomingdale's averages 100 a week ■ Gucci takes three weeks to deliver the purses to Bloomingdale's ■ If there is no uncertainty,the store manager can place an order when the store has exactly 300 purses remaining. ■( Given demand fluctuations and forecast errors,actual demand over the three weeks may be higher or lower than the 300 purses forecasted. SEIEE AU406 4+ - SEIEE AU406 Example of Bloomingdale  The store manager at Bloomingdale’s orders in lots of 600 purses  Demand for purses at Bloomingdale’s averages 100 a week  Gucci takes three weeks to deliver the purses to Bloomingdale’s  If there is no uncertainty, the store manager can place an order when the store has exactly 300 purses remaining.  Given demand fluctuations and forecast errors, actual demand over the three weeks may be higher or lower than the 300 purses forecasted. 4