Can someone please help with the two questions as it relates to this toy. This is from the book: "Managing Operations Across the Supply Chain" by Swink and Melnyk 2cd edition. The answers to should related to Supply Chain. Thank you!

been responsible for building electrical and steam-driven toy trains. Since the 19505, Otis trains had developed a major presence on children's television shows. Every per son (especially boys) knew about Otis toy trains and nearly everyone wanted one. For many kids growing up in the 19605 to the 19808, waking up on Christmas day and nd- ing an Otis toy train set under the tree was a dream come true. However. the 19905 had not been good to Otis Toy Trains. The preferences of many children had changed. Instead of toys, what many children wanted was a game playing system (like Sony's P82 or Microsoft Xbox or Nintindo's GameBoy Advanced). After a lot of investiga- tion and assessment, the management at Otis had decided to reorient the product and the market. Consequently, it decided to target the adult male customer in the 30 to 50 year age bracket. This market was selected for several rea- sons. First, they had grown up with Otis toy trains and, as a result, Otis had excellent brand recognition among these buyers. Second, since Otis had decided to maintain the bulk of its production facilities in the areas around Minneapolis (the major production facility was located in Rochester, Minnesota), it needed a buyer who was willing to pay the premium now demanded by Otis Toy Trains for its products. Adult males in the 30 to 50 year age bracket typically had the income that supported luxury buys such as the Otis toy trains. Finally, the new target market was attractive because they tended to buy more than one system and they tended to buy a large number of accessories with their toy train purchases. To sell to this new market, Otis introduced in 1995 the Otis Premium Trains of the Past series. This was a line of highly detailed, highly accurate trains drawn from critical points in North American history. The rst launch con- sist the De Witt Clinton Rocket (the rst train oper- (a train model based on the train coaches that were used to transport the body of the recently assassinated President Lincoln from Washington, DC, to Springeld, IL, for nal burial), the Zephyr (the famous streamlined train that ran between Chicago and Denver during the 1930s), and the Orange Blossom Special. Launched in limited numbers, this rst series was an unqualified success. Subsequent launches were almost as successful. Over this time, the designers at Otis Toy Trains developed and rened the skill of identifying attractive train series and of designing products that were detailed, attractive, accurate. and highly evocative of past times. By 2010, however, Otis Toy Trains found itself faced by the challenge of dealing with increasing labor costs. It was during this time period that the Joyous Luck Prosperity Toy Company (JLPTC) of China approached the manage- ment of the Otis Toy Train Company with a proposal that had already secured the support of Otis corporate accoun- tants. They proposed to work closely with the designers of the Otis Toy Train Company with the goal of taking over the bulk of production of the Otis Premium Trains of the Past series. What JLPTC offered Otis was a landed price per unit that was between 40 and 60 percent lower than current manufacturing costs. This was a price that was too good to pass up. Questions 1. Assume that you are hired as a consultant to help Otis Toy Trains. What recommendations would you give to the management of Otis regarding the attractiveness of this proposal? 2. Assume that Otis decided to accept this proposal. Identify and discuss the most appropriate relationship that you would recommend for Otis and JLPTC. What risks are present in this proposal? How could Otis pro- tect itself from these risks? as @datin'eolt'adtlaameanner