In the summer of 1980 concerns about increasing requirements for working capital and a slowdown in booking new orders were worrying the president of Western Telephone Systems. The bookings' forecast had become the focus because of several developments during the past month. Inventory levels had increased at the rate of $260,000 per month, changes in the timing and size of one order from Telphic Supply Company had contributed to increased variability in the monthly forecast, and then there were the poor forecasts from the assistant sales manager causing a large buildup in work-in-process inventories.