:a03:Toys 4 Us, Inc. manufactures toy over-the-road trucks. Toys 4 Us molds the bodies of the trucks from recycled
plastic using an injection molding process, and it purchases the components for the wheel assemblies and
assembles the wheel assemblies and the trucks. Each truck consists of a cab and a trailer. The cab requires ½
pound of plastic for the body, while the trailer requires 1 pound of plastic for the body. The cab requires two wheel
assemblies: a front wheel assembly consisting of one axle and two wheels; and a rear wheel assembly consisting of
one axle and four wheels. The trailer requires 3 wheel assemblies, each consisting of one axle and 4 wheels.
Inventory on hand at the end of January was as follows:
Finished goods:
Completed trucks - 100
Raw materials:
Recycled plastic – 150 pounds
Axles – 375
Wheels – 1,350
There was no work in process.
Demand for the toy trucks during the month of February is expected to be 1,200 units. The company plans to
produce the trucks evenly throughout the month. Management has just decided that in order to make sure the
company will be able to meet increasing demand, it needs a minimum of the following inventories on hand at all
times, as follows (no exceptions):
Finished goods:
Completed trucks - 200
Raw materials:
Recycled plastic – 300 pounds
Axles – 550
Wheels – 2,000
Lead time required to order and receive wheels is 1 week. Toys 4 Us has an order of 5,000 wheels on order which
will come in on February 1. Orders can be placed in lots of 1,000 only. Assuming February 1 falls on the first day of
the work week and there are four weeks in the month, how many wheels does Toys 4 Us need to order on February
1?
الجوابToys 4 Us has 100 completed units in finished goods inventory at the end of January. It needs to increase
finished goods inventory to 200 units. In addition, it needs to meet demand of 1,200 units during the month
of February. Therefore, production during February needs to be 1,300 units, and this production will take
place evenly throughout the month, which consists of four weeks. Thus, weekly production will be 325
units.
Each toy truck requires 18 wheels: 6 wheels for the cab (1 * 2) + (1 * 4) and 12 for the trailer (3 * 4). Therefore,
the weekly requirement will be 325 * 18, or 5,850 wheels. Beginning raw materials inventory is 1,350 wheels.
On Feb. 1, an order of 5,000 wheels will be received. During the week beginning Feb. 1, the company will use
5,850 wheels in manufacturing, leaving it with only 500 wheels on hand in raw materials inventory.
Therefore, on Feb. 8, the company will need to receive enough wheels to meet its weekly production
schedule requiring 5,850 wheels, plus it will need to receive enough wheels to increase its raw materials
inventory of wheels from 500 units to the minimum required 2,000 units, a 1,500 unit increase. Thus, the
company will require 7,350 wheels to be delivered on Feb. 8. Since only lots of 1,000 can be ordered, the
order placed on Feb. 1 for Feb. 8 delivery should be for 8,000 units.
plastic using an injection molding process, and it purchases the components for the wheel assemblies and
assembles the wheel assemblies and the trucks. Each truck consists of a cab and a trailer. The cab requires ½
pound of plastic for the body, while the trailer requires 1 pound of plastic for the body. The cab requires two wheel
assemblies: a front wheel assembly consisting of one axle and two wheels; and a rear wheel assembly consisting of
one axle and four wheels. The trailer requires 3 wheel assemblies, each consisting of one axle and 4 wheels.
Inventory on hand at the end of January was as follows:
Finished goods:
Completed trucks - 100
Raw materials:
Recycled plastic – 150 pounds
Axles – 375
Wheels – 1,350
There was no work in process.
Demand for the toy trucks during the month of February is expected to be 1,200 units. The company plans to
produce the trucks evenly throughout the month. Management has just decided that in order to make sure the
company will be able to meet increasing demand, it needs a minimum of the following inventories on hand at all
times, as follows (no exceptions):
Finished goods:
Completed trucks - 200
Raw materials:
Recycled plastic – 300 pounds
Axles – 550
Wheels – 2,000
Lead time required to order and receive wheels is 1 week. Toys 4 Us has an order of 5,000 wheels on order which
will come in on February 1. Orders can be placed in lots of 1,000 only. Assuming February 1 falls on the first day of
the work week and there are four weeks in the month, how many wheels does Toys 4 Us need to order on February
1?
الجوابToys 4 Us has 100 completed units in finished goods inventory at the end of January. It needs to increase
finished goods inventory to 200 units. In addition, it needs to meet demand of 1,200 units during the month
of February. Therefore, production during February needs to be 1,300 units, and this production will take
place evenly throughout the month, which consists of four weeks. Thus, weekly production will be 325
units.
Each toy truck requires 18 wheels: 6 wheels for the cab (1 * 2) + (1 * 4) and 12 for the trailer (3 * 4). Therefore,
the weekly requirement will be 325 * 18, or 5,850 wheels. Beginning raw materials inventory is 1,350 wheels.
On Feb. 1, an order of 5,000 wheels will be received. During the week beginning Feb. 1, the company will use
5,850 wheels in manufacturing, leaving it with only 500 wheels on hand in raw materials inventory.
Therefore, on Feb. 8, the company will need to receive enough wheels to meet its weekly production
schedule requiring 5,850 wheels, plus it will need to receive enough wheels to increase its raw materials
inventory of wheels from 500 units to the minimum required 2,000 units, a 1,500 unit increase. Thus, the
company will require 7,350 wheels to be delivered on Feb. 8. Since only lots of 1,000 can be ordered, the
order placed on Feb. 1 for Feb. 8 delivery should be for 8,000 units.