Toysplus Inc.

1. Economic line of battle quantities calculations: In this example study, I use POQ to get Optimal Quantities to Order because some the part be make by companys plastic-molding machines in an assembly trading operations and units can be assumed that are received incrementally during out(p)turn. We as well as arrive the by- specify assumptions: - Only one item is twisty because each cause of shrink from has its own assembly line, merely one toy can be assembled at a time on this line. - Annual Demand is known - usance site is constant - Usage occurs continually but product occurs periodically - The payoff rate is constant ( i.e. production rate of Toy Auto is 3500, Toy Truck, 1750; Toy Robot, 2333) - thither are no quantity discounts Thus, we have to find out the flummox up bell, Holding comprise, Demand per year, Demand per workweek and production rate. Therefore, we have Ø Set up equal : According to the case study, we have the shop labor rate is the sum of $6 per mo for wages, 33% fringe benefits and $6 per hour supercharged for overhead. Moreover, line 1 has 10 workers who engage in assembly. Thus, the apparatus cost is: S = 1 hour * 10 workers * ( $6 wages + 0.

33*6 benefits+ $6 overhead ) = $ cxl Ø Holding Cost: There is some ambiguity here. The subcomponent cost in Exhibit 4 do non always hit up to the Cost Each (e.g. the cost for Auto is $3.9) which is train 0 item cost. So I assumed that song 1 labor costs (at a fully charge $6 + 0.33*6 + $6 = $ 14 per hour) wer e not included. Hence, compass point Cos! t per unit is the sum of Cost Each specific and the labor cost per item. You can limit the results of Item Cost... If you hope to get a full essay, order it on our website: OrderCustomPaper.com

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