To do any task you have to need a plan otherwise you can not fulfill your task. In our sector, we have calculated the order quantity and shipment day. We make a plan.
Example: 1st April 2012
Order quantity = 30000 pcs
To be shipped on 30 May 2012
Therefore, day remaining = 26 days
Per day planned Target =30000/26
=1154 pcs day
Hence, we calculate how many lines will be allocated to fulfill the target.
▫ Determine cost:
To take an order you have the need to analyze the cost. The style will be profitable or lost.
Our per line day cost = 900$
Company + other cost =100$
Target earning = 1000 $
Day target = 1542 pcs
Buyer fixed per pcs = .50 $
Per day = 1542*.50
=771 $ per day
So, it is not profitable. The company will not accept such an order.