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Case
-
Reference no. 9B16B010
Compact case
Published by:
Ivey Publishing (2016)
Version:
2019-10-29
Revision date:
11-Nov-2019
Length:
4 pages
Data source:
Field research

Abstract

The owner of a designer handbag company, 442 McAdam, found she could no longer manufacture in-house the quantity of handbags required to meet existing orders. Manufacturing would need to be outsourced, and the owner would have to choose between a local manufacturer and an overseas manufacturer. Local manufacturers offered the same quality as overseas manufacturers but charged higher prices. International manufacturers, while offering lower prices, required larger minimum order quantities. Regardless of the manufacturing option she chose, the owner wondered whether the minimum levels of inventory she needed to order could be sold within the upcoming six-month style season.

Topics

Inventory planning; Control; Manufacturing strategy; Cost/benefit analysis; Management accounting; Accounting
Location:
Industry:
Size:
Small
Other setting(s):
2015

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