In the year RAW manufacturing introduced their "Small-Screen TV" it became an immediate hit. Unfortunately, with the big tax overhaul package put through in the year previously, import restrictions tied up production and shipment for several months, and, in fact, seemed to doom the product.

The product was constructed mainly in West Africa, which had recently become the low-labor cost competitor with Korea. The TV was very small, measuring 2 1/2 inches wide, 4 inches wide, and only 1/4" thick. The screen, which took up most of the top's surface area, was made of a new scratch-resistant, flexible polymer. Its incredible resolution was due to an improvement upon an earlier idea, which shot electrons across the screen, rather than at it. An innovation in microchip technology allowed for a massive reduction in production cost that made production costs not only reasonable but extremely profitable.

The TV sold for half the price of the nearest competitor and had twice the picture quality. Raw estimated at least 18 months until the competition would be able to come out with a competitive clone, due to some patent protection.

Because of import difficulties during the first year of production, however, less than 1,000 units were sold. But it was estimated that over 45,000 units would be sold in the following year and that the current production, storage and shipping facilities were insufficient to meet demand.

A new plant was constructed (with funds from other corporate earnings) and an EOQ model was quickly constructed to find out the ideal order quantity in view of current demand. The new plant was a more efficient plant, but carrying costs would have to increase 5%, order costs increased $5 per order, and lead time was cut by two days. The extra investment was worthwhile, however, because ordering went smoothly for the small-screen TV. Estimated world-wide demand for eight years out were almost 1 million units a year.