Question: Assume no minimum order quantity restrictions and consider a single source first. This way we are not complicating the decision - making by trying to

Assume no minimum order quantity restrictions and consider a single source first. This way we are not complicating the decision-making by trying to allocate between Hong Kong (HK) and China. Using the sample data in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. First, assume that there is no minimum order size requirement, and that Obermeyer's initial production commitment must be at least 10,000 units. (Would you want to order more than 10,000 units? Why, or why not?) Assume that an initial order of 10,000 units leaves sufficient capacity for the second order.

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