Each year you must make a production plan decision to inform the production department of the forecasted sales for the year. The production plan must be entered in thousands of units.
Your decision will depend on the forecasted market size and on your expected market share, taking into account the expected moves of your competitors as well as your own product upgrade and marketing plan.
The Production department is a highly flexible supplier and will always manufacture the required quantities in the best possible conditions.
You are not concerned about manufacturing investments, fixed costs or capacity utilization. Your only responsibility is to make an accurate forecast as errors in planning will have financial consequences, as explained in the section 2.4.