Toys Plus Inc

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1. Calculate economic order quantities for each of the three types of toys.

MASTER SCHEDULE FORECAST INPUT

SEP26 OCT3 OCT10 OCT17 OCT24 OCT31

----- ----- ----- ----- ----- -----

TOY AUTO 1100 1150 1200 1300 1400 1500

TOY TRUCK 500 450 400 350 300 300

TOY ROBOT 700 650 650 625 625 600

------ ------ ------ ------ ------ ------

TOTAL UNITS 2300 2250 2250 2275 2325 2400

AVERAGE WEEKLY DEMAND (CALCULATED)

TOY AUTO 1275

TOY TRUCK 383

TOY ROBOT 642

MASTER SCHEDULE

EOQ CALCULATIONS

AUTO TRUCK ROBOT

WEEKLY DEMAND RATE 1275 383 642

PRODUCTION RATE PER WEEK 3500 1750 2333

UNIT COST 3.2 6.5 4.1

SETUP COST 293

CARRYING COST(% Per Year) 25%

ECONOMIC ORDER QUANTITY 8740 3034 5130

BEGINNING INVENTORY LEVEL INPUT 4000 2000 1500

Run-out Time = Inventory Level / Demand (in weeks) 3.14 5.22 2.34

2. Prepare a master production schedule for the next six weeks

MASTER SCHEDULE (INPUT PLANNED QUANTITY FOR EACH WEEK)

PLANNED PRODUCTION (WEEK BEGINNING)

SEP26 OCT3 OCT10 OCT17 OCT24 OCT31

----- ----- ----- ----- ----- -----

TOY AUTO 0 0 2600 3500 2640 0

TOY TRUCK 0 0 0 380 1750

TOY ROBOT 2267 2333 530 0 0 0

------ ------ ------ ------ ------ ------

TOTAL UNITS 2267 2333 3130 3500 3020 1750

TOTAL LABOR HOURS 350 350 350 350 350 350

CALCULATED RUN-OUT TIMES (WEEKS) EOQ

TOY AUTO 10.0 8740

TOY TRUCK 10.8 3034

TOY ROBOT 10.3 5130

PROJECTED INVENTORIES OF FINISHED GOODS

SEP26 OCT3 OCT10 OCT17 OCT24 OCT31

----- ----- ----- ----- ----- -----

TOY AUTO 2900 1750 3150 5350 6590 5090

TOY TRUCK 1500 1050 650 300 380 1830

TOY ROBOT 3066.667 4750 4630 4005 3380 2780

------ ------ ------ ------ ------ ------

TOTAL UNITS 7466.667 7550 8430 9655 10350 9700

FINISHED GOODS INVENTORY ANALYSIS:

AVERAGE WEEKLY USAGE IN $ $10,929

AVERAGE WEEKLY INVENTORY IN $ $42,676

FINISHED GOODS TURNOVER RATIO 13.3

COMPONENT PART INPUTS

BEGINNING G PARTS LEAD SAFETY

COMPENENT PART INVENTORY Y UNIT TIME STOCK

- - - - - - -

523 CAR BODY 2500 1 3 1275

525 AUTO WHEELS 9800 4 2 5100

529 AUTO SIDE WINDOWS 4300 2 1 2350

531 AUTO WINDSHIELD 2620 1 2 1275

615 TRUCK CAB 1200 1 3 383

617 TRUCK DUAL WHEELS 9900 8 2 3064

619 TRUCK SINGLE WHEELS 2500 2 2 766

621 TRUCK TRAILER 4600 1 4 383

730 ROBOT BODY 1600 1 2 642

732 ROBOT ARMS 3500 2 2 1284

734 ROBOT LEGS 4020 2 1 1284

736 ROBOT HEAD 2150 1 2 642

3. Prepare a parts explosion to support the master schedule

COMPONENT PARTS EXPLOSION

WEEK BEGINNING

SEP26 OCT3 OCT10 OCT 17 OCT 24 OCT 31

523 GROSS REQUIREMENTS 0 0 2600 3500 2640 0

SCHEDULED RECEIPTS 0 0 0 0 0 0

PROJ. ON HAND INV. 2500 2500 1275 1275 1275 1275

NET REQUIREMENTS 0 0 1375 3500 2640 0

PLAN. ORDER RELEASES 3500 2640 0 0 0 0

- - - - - - -

525 GROSS REQUIREMENTS 0 0 10400 14000 10560 0

SCHEDULED RECEIPTS 0 0 0 0 0 0

PROJ. ON HAND INV. 9800 9800 5100 5100 5100 5100

NET REQUIREMENTS 0 0 5700 14000 10560 0

PLAN. ORDER RELEASES 5700 14000 10560 0 0 0

- - - - - - -

529 GROSS REQUIREMENTS 0 0 5200 7000 5280 0

SCHEDULED RECEIPTS 0 0 0 0 0 0

ON HAND INVENTORY 4300 4300 2350 2350 2350 2350

NET

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