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 decisionmaking by trying to allocate between Hong Kong HK and China. Using the sample data in Exhibit 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 units. Would you want to order more than units? Why, or why not? Assume that an initial order of units leaves sufficient capacity for the second order.
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