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3. Comfortwear Hosiery, Inc., produces men's socks at its manufacturing facility in Topeka, Kansas. The socks are

stored in a warehouse near the factory prior to distribution to DC locations in Los Angeles, Memphis, and Dayton. The warehouse uses a top-down forecasting approach when determining the expected quantities demanded at each DC. The aggregated monthly forecast for June is 20,000 pairs of socks. Historically, the Los Angles DC has demanded 15 percent of the warehouse's stock. Memphis and Dayton demanded 40 percent and 35 percent, respectively. The remaining percent is shipped directly from the warehouse. a. Based on the aggregated forecast, how many pairs of socks should you expect each DC to demand in June? (1p) b. Suppose the aggregated forecast for July results in a 3 percent decrease over June's forecast. How many pairs of socks would each DC anticipate in July? (1p)

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