Discussion:
Part 1
From the scenario for Katrina's Candies, examine the key factors affecting the demand for and the supply of a good in general and Katrina's Candies specifically. Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve). Propose two methods in which organizations that provide the good may utilize this information.
Part 2
From the scenario for Katrina's Candies, examine the procedure Herb will use to estimate the demand model developed in the scenario for Part 1. Analyze the elasticity of demand for products within the selected industry relevant to Katrina's Candies. Determine the factors involved in making decisions about pricing these products that you believe to be the most influential.
Part 3
• 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.