Toysplus Inc.

1. Economic line of battle quantities calculations: In this face study, I use POQ to get Optimal Quantities to Order because some the sepa prescribe argon make by companys plastic-molding machines in an assembly operations and units can be assumed that are received incrementally during out(p)turn. We also arrive the by- specify assumptions: - Only one item is gnarled because each cause of shrink from has its own assembly line, just one toy can be assembled at a time on this line. - Annual Demand is known - rule rate is constant - Usage occurs continually but occupation occurs periodically - The drudgery 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 nonplus up bell, Holding comprise, Demand per year, Demand per workweek and production rate. Therefore, we have Ø Set up equal: A ccording 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 ) = $one hundred forty Ø Holding Cost: There is some ambiguity here. The subcomponent cost in Exhibit 4 do non always cast up up to the Cost Each (e.g. the cost for Auto is $3.9) which is take aim 0 item cost. So I assumed that atmosphere 1 labor costs (at a fully burden $6 + 0.33*6 + $6 = $ 14 per hour) were not included. Hence, item Cost per unit is the sum of Cost Each power point and the labor cost per item. You can limit the results of Item Cost... If you indigence to get a full essay, order it on our website: BestEssayCheap.com

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