Toysplus Inc.

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 …

… much to order). She can reduce the economic order quantity by working harder to reduce the ordering cost S. Another possibility is to examine holding cost H. She also can reduce the amount of safety stock to reduce inventory. Important factors in safety stock are lead time and lead time variability, reductions of which will results in lower safety stock. She can judge the timing of orders to set a reasonable lead time.