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. $$\begin{array} { l c c c c c } \text { Toy } & \begin{array} { c } \text { Begin. Invty. } \\\text { June 1 }\end{array} & \begin{array} { c } \text { Required } \\\text { Plastic }\end{array} & \begin{array} { c } \text { Required } \\\text { Time }\end{array} & \begin{array} { c } \text { Production } \\\text { Cost }\end{array} & \begin{array} { c } \text { Production } \\\text { Cost }\end{array} \\\hline \text { Rocking Horse } & 25 & 5 & 2 & 12 & 1 \\\text { Scooter } & 55 & 4 & 3 & 14 & 1.2\end{array}$$ $$\begin{array} { l c c c c } \text { Summer Schedule } & \begin{array} { c } \text { Plastic } \\\text { Available }\end{array} & \begin{array} { c } \text { Time } \\\text { Available }\end{array} & \begin{array} { c } \text { Monthly Demand } \\\text { Horse }\end{array} & \begin{array} { c } \text { Monthly Demand } \\\text { Scooter }\end{array} \\\hline \text { June } & 3500 & 2100 & 220 & 450 \\\text { July } & 5000 & 3000 & 350 & 700 \\\text { August } & 4800 & 2500 & 600 & 520\end{array}$$ 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.

Understand the concept of asymmetric information in economics.

Comprehend the moral-hazard problem and its implications in the labor market.

Grasp the principle of adverse selection and its classic examples.

Recognize the relationship between asymmetric information and market failures such as the lemons problem.

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Definitions:

Moving Violations

Traffic offenses committed by a vehicle in motion, such as speeding, running a red light, or driving under the influence.

Null Hypothesis

A statement asserting there is no significant difference or relationship between specified populations, derived from sample data.

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The combined income of all members of a household, used as a measure of socioeconomic status or to understand economic trends.

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A measure of a student's academic achievement in high school, typically calculated as an average of grades.