Laurence & Ralph (L&R) is not a case, per se, but a note on the classical Newsboy Problem. This type of problem is exemplary in capacity or inventory economics. It occurs every time a product needs to be ordered or service capacity needs to be set when demand in the forthcoming sales or service period is uncertain.

This case deals with the issue of a joint-venture between a UK-based multinational textile company and a Tunisian, owner manager firm. The objective of the joint-venture is to upgrade the current facilities of the Tunisian firm in order to produce garments to be distributed by the UK firm.