Toyota Case Study
For this particular case study, I have decided to take the instance of a post productions and
VFX company in India. Their operations included lab film processing, colour grading and if
needed visual effects as well. They were the first e

a) Given the following forecast and steady regular output of 550 every month, what total cost would result if overtime is limited to a max of 40 units per month,
and subcontracting is limited to a max of 10 unites a month? Unit costs are:
Costs
Inventory

Costs Inventory
Output
Chips required
Cost regular time ($/chip)
Cost overtime ($/chip)
Regular operation time (hrs)
Overtime (hrs)
Production time per chip (hrs)
Regular Production Qty
Overtime Qty
Inventory Holding cost ($/chip)
Period
Forecast
Regular

1 Andrew McCarroll is trying to determine how many units each of two cordless telephones to produce each day. One of these is the standard model; the other one is the deluxe
The profit per unit on the standard model is $40, on the deluxe model $60. Each u

Q: Prepare two additional aggregate plans. Call the one in the solved problem plan A. For plan B, hire one more worker at a cost of $200. Make up any shortfall using subcont
Note that the ending inventory in period 9 should be zero. Therefore, Total forec

Q) You are product planner for product A. The field service manager, Al Trostel, has just called and told you that the
requirements for B and F should each be increased by 10 units for his repair requirements in the field.
a) Prepare a list showing the qu

Question:
The lead time for Crafty City workbenches is 3 weeks, with a standard deviation of 1.2
weeks, and average weekly demand is 24, with a standard deviation of 8 workbenches.
What should the reorder point be if Crafty City wants to provide a 95% per