Production plan decision

You need to make an annual sales forecast for the production department. The production plan must be entered in thousands of units. 

This decision is quite difficult to make in the case of the Blue Ocean product, especially for the first year.  Your decision will depend on the potential sales to noncustomers (and customers) which will be driven by the attractiveness of your offer, as a combination of price and the value factors. 

The Production department is a highly flexible supplier.  It will always manufacture the required quantities in the best possible conditions.

You need not concern yourself about manufacturing investments, fixed costs or capacity utilization.  Your only responsibility is to make an accurate forecast as errors in planning do have financial consequences, as explained in the Introduction to the Red Round.