Question

Consider the TOYCO production problem with two products toy CARS and toy TRAINS. The toys are sold to a wholesale distributor who demands shipments in packs (boxes). There is no limit on how much we can produce. The toy CARS are delivered in boxes of 20 while the toy TRAINS are delivered in boxes of 25. What is the best product mix in this scenario

Answer 1

Answer:

Package both CARS and TRAIN toys into a single box.

Explanation:

Remember, if TOYCO delivers these toys separately it will incur more cost on the packaging. Since they are dealing with a wholesale distributor they can pack both products into a single box.

This product mix approach saves TOYCO financially.