Question 2:

A company called TransCar produces child toys and located in Cikarang, West Java province. Most of the raw materials needed for the products are supplied by several companies in Java and Sumatra islands. However, some critical components are still supplied by Chinese and Malaysian companies. TransCar markets its products through conventional toy stores, and via the e-commerce platforms. The COVID-19 pandemic has affected TransCar operations due to lockdowns and social restrictions implemented in most countries around the world, and this circumstance forces the company to rethink about its supply chain structure.

a. Should TransCar change its supply chain structure? Explain your answer!

b. One of the child toys that is very popular is Toy Car. To produce 1 unit of Toy Car, it needs 2 units of Wheel Assembly, and 1 unit of Body. To make 1 unit of Wheel Assembly it needs 1 unit of Axle, 2 units of Wheel, and 4 units of Screw. The table below gives the information about the lead time of each product and component and their on-hand

inventory.

Product/ Lead On-hand Lot Sizing component Time Inventory Technique (weeks) (units) Toy Car 45 Lot for lot Wheel Assembly 10 Lot for lot Body 20 Lot for lot - W Axle 75 Lot for lot Wheel 2 50 Lot for lot Screw 100 Lot for lot