The Tots Toys Company Is Trying to Schedule Production of Two

question 6

Essay

The Tots Toys Company is trying to schedule production of two very popular toys for the next three months: a rocking horse and a scooter. Information about both toys is given below. $$\begin{array} { l c c c c c } \text { Toy } & \begin{array} { c } \text { Begin. Invty. } \\\text { June 1 }\end{array} & \begin{array} { c } \text { Required } \\\text { Plastic }\end{array} & \begin{array} { c } \text { Required } \\\text { Time }\end{array} & \begin{array} { c } \text { Production } \\\text { Cost }\end{array} & \begin{array} { c } \text { Production } \\\text { Cost }\end{array} \\\hline \text { Rocking Horse } & 25 & 5 & 2 & 12 & 1 \\\text { Scooter } & 55 & 4 & 3 & 14 & 1.2\end{array}$$ $$\begin{array} { l c c c c } & \text { Plastic } & \text { Time } & \text { Monthly Demand } & \text { Monthly Demand } \\\text { Summer Schedule } & \text { Available } & \text { Available } & \text { Horse } & \text { Scooter } \\\hline \text { June } & 3500 & 2100 & 220 & 450 \\\text { July } & 5000 & 3000 & 350 & 700 \\\text { August } & 4800 & 2500 & 600 & 520\end{array}$$ Develop a model that would tell the company how many of each toy to produce during each month. You are to minimize total cost. Inventory cost will be levied on any items in inventory on June 30, July 31, or August 31 after demand for the month has been satisfied. Your model should make use of the relationship
Beginning Inventory + Production - Demand = Ending Inventory
for each month. The company wants to end the summer with 150 rocking horses and 60 scooters as beginning inventory for Sept. 1. Don't forget to define your decision variables.

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Definitions:

Core Value

A fundamental belief or principle that is considered inherently important by an organization, guiding its behavior and actions.

Sales Revenue

The sum of all revenue generated from selling products or services prior to deducting any costs.

Market Share

The percentage of an industry's sales that a particular company controls.

Profit

The financial gain made in a transaction or operation, calculated as the difference between the sales revenue and the cost of goods sold.