a$)$ Think about Zara's sourcing $($procurement$)$ decisions. What factors would you consider

when choosing between producing a garment locally $($in Spain$)$ or outsourcing it $($to

Asia$)?$

b$)$ When outsourcing production, how do you determine the order quantity? What are the

key factors influencing this decision?

c$)$ When opting for local production, how do you determine the replenishment schedule and

order quantities? What are the key factors influencing this decision?

d$)$ Suppose with better forecasting techniques, you could reduce the forecast error for

product demand by $25\%.$ Which costs would decrease under each sourcing strategy?

e$)$ Suppose you could reduce the lead time from producing garments locally by $25\%.$ What

costs would decrease?