Operations managment

Q1. Explain the Aggregate Planning (AP) in detail. Discuss the importance of AP for operations management? (15 points)

Q2. Answer the following questions with given project network data below (25 points).

A) Draw the network diagram (Use the data box for each activity) (10p/25)
B) Calculate Forward, Backward, Slack, CPM (show the CPM path) (9p/25)
C) List the all paths and calculate durations for each of them. (6p/25)

Q3. Answer the following questions for location decisions (20 points).
A) A company is planning on expanding and building a new store in a given region. The operations manager charged with making the decision, has determined key success factors to evaluate alternative places. He uses factor rating method given below (10p/20)

a) Which region should be selected for the new location?
b) Factor ‘Legal issues” in Location-B changes as the score of 82, does your conclusion change?
c) What if ‘Infrastructure’ in Location-A score drops even further to 67, so the decision has change or not?

B) Which location has the best option for a company in terms of cost? (Output levels are 7650, 7400, 7200, 7100, 7500 units per year for each location) (5p/20)

 

C) A Logistic service company wants to extend the operation locations in the region. As given data for alternative locations below, calculate the center of gravity and find out the appropriate location for them. (5p/20)
Location (x, y) Weekly Quantity
L1 4 7 850
L2 7 7 900
L3 6 7 950
L4 9 6 1030

Q4. Answer the problem solving questions below. (20 points)
A) A Studio-A orders 525 box printing paper for its services monthly at 7.5 KWD each (paper box price). Ordering costs are 32 KWD, and annual carrying costs are 30 percent of the paper box price. Compute the EOQ and Total Cost. (7p/20)

B) The clinic periodically place orders for medical cream (skin care product) to sell to their customers. The operations manager of the clinic knows that they use cream at an amount of 440 packages each month, and it costs 52 USD per year to carry per package of creams in inventory. He also knows that the order costs for cream are 93 USD per order, and that the lead time for delivery is (4) days. (13p/20)
⦁ What is the Economic Ordering Quantity (EOQ)? (4p)
⦁ How many times in a year should she reorder based on EOQ? (2p)
⦁ What is the length of an order cycle? (2p)
⦁ What is the reorder point (ROP)? (assume 320 days in a year) (2p)
⦁ What will be the total inventory cost if the items are ordered based on EOQ? (3p)

Q5. Read and analyze the academic article “Why locate manufacturing in a high-cost country? A case study of 35 production location decisions” on Moodle page (24-30 October, Week 5). The requirements for analysis should be covered as problem definition and scope/aim of the paper, methods used, summary of findings and discussions with your own understandings/your comments. (20 points).