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Given the uncertainty in demand, sometimes the gift item is very popular and Home Decorators Inc. has to turn away customers. Suppose Home Decorators Inc.

  1. Given the uncertainty in demand, sometimes the gift item is very popular and Home Decorators Inc. has to turn away customers. Suppose Home Decorators Inc. can place a rush order with a local supplier and procure any quantity at a purchase cost of $200 (only for the additional units ordered). 
  2.  Assume that the rush order will be dispatched to the customer quickly enough so that the customer does not notice the slight increase in lead time and will buy the item at the price of $400. 
  3.  Should Home Decorators Inc. consider placing these special orders - briefly explain why?

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