DISCUSSION: "Managing in the Global Economy and Outsourcing Offshore"

Please respond to the following:

• From the scenario for Katrina's Candies, assuming the absence of quantitative data, determine the qualitative forecasting techniques that could be used within this scenario. Now, assume you have acquired some time series data that would enable you to make forecasts. Ascertain the quantitative technique that will provide you with the most accurate forecast.

• When deciding whether or not to outsource offshore, list the key factors aside from maximizing profits that managers should consider. Determine the key factors that you believe to be the most influential.

Production Economics and Decisions

From the scenario for Katrina's Candies, determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina's Candies should use for expansion decisions in the short run and in the long run. Determine under what conditions, a company should or should not continue to produce the good or service.