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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 2 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? A. 6,000 B. 7,000 C. 5,4000 D. 8,000 |