Asmall canadian firm that has developed valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the european union market. its choices are given below. the cost of invest- ment in manufacturing facilities will be a major one for the canadian firm, but it is not outside its reach. if these are the firm’s only options, which one would you advise it to choose? why? a. manufacture the products at home, and let foreign sales agents handle marketing. b. manufacture the products at home, and set up a wholly owned subsidiary in europe to handle marketing. c. enter into an alliance with a large european pharmaceutical firm. the products would be manufactured in europe by the 50–50 joint venture and marketed by the european firm.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?