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Back to category: Science Limited version - please login or register to view the entire paper. Toyplus Inc. case study 1. Economic order quantities calculations: In this case study, I use POQ to calculate Optimal Quantities to Order because some the parts are made by company’s plastic-molding machines in an assembly operations and units can be assumed that are received incrementally during production. We also have the following assumptions: - Only one item is involved because each type of toy has its own assembly line, only one toy can be assembled at a time on this line. - Annual Demand is known - Usage rate is constant - Usage occurs continually but production occurs periodically - The production rate is constant ( i.e. production rate of Toy Auto is 3500, Toy Truck, 1750; Toy Robot, 2333) - There are no quantity discounts Thus, we have to find out the Set up cost, Holding cost, Demand per year, Demand per week and production rate. Therefore, we have Ø Set up Cost: According to th... Posted by: John Mayes Limited version - please login or register to view the entire paper. |
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