Question: Using the sample data in Exhibit 1 0 , make a recommendation for how many units of each style Wally Obermeyer should order during the
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. Assume
that all ten styles in the sample problem are made in Hong Kong a minimum
commitment of units per style ordered and that Obermeyers initial production
commitment must be at least units. Initially, ignore price differences among
styles in your initial analysis. Clearly spell out the methodology you have used to make
your ordering decisions in an exhibit. Spell out the logic behind your methodology. Note focus will be on your thinking about
how such an issue can be approached.
Can you come up with a measure of risk associated with your ordering policy? How does
this measure change when you do not ignore prices? This measure of risk should be
quantifiable.
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