Operations Management Assignment

ASSIGNMENTS TO BE SUBMITTED (Max. Mark: 50%)

1. Distinguish between production management and operation

management (5 Points)
2. What are the differences between ISO 9001 and ISO 14001?
(5 Points)
3. “A Good Product Design Contributes To “TQM” in the
Organization.” Explain how this may happen (5 Points)
4. Selam’s Pizzas has a service guarantee that promises you
will not pay for your pizza if it is delivered more than 30
minutes from the order being placed. An investigation
shows that 10 per cent of all pizzas are delivered between
15 and 20 minutes from order, 40 per cent between 20 and
25 minutes from order, 40 per cent between 25 and 30
minutes from order, 5 per cent between 30 and 35 minutes
from order, 3 per cent between 35 and 40 minutes from
order, and 2 per cent over 40 minutes from order. If the
average profit on each pizza delivered on time is A1 and the
average cost of each pizza delivered is A5, is the fact that
Selma’s does not charge for 10 per cent of its pizzas a
significant problem for the business? How much extra profit
per pizza would be made if 5 minutes was cut from all
deliveries? (5 Points)
5. Potential locations X, Y and Z have the cost structures
shown below. The ABC company has a demand of 130,000
units of a new product. Three potential locations X, Y and Z
having following cost structures shown are available. Select

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which location is to be selected and also identify the volume

ranges where each location is suited? (5 Points)

6. The new Health-care facility is targeted to serve seven

census tracts in Bahir Dar. The table given below shows the
coordinates for the center of each census tract, along with
the projected populations, measured in thousands.
Customers will travel from the seven census tract centers to
the new facility when they need health-care. Two locations
being considered for the new facility are at (5.5, 4.5) and (7,
2), which are the centers of census tracts C and F. Details of
seven census tract centers, coordinate distances along with
the population for each center are given below. Find the
target area’s center of gravity for the Health-care medical
facility (5 Points)

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Let us assume that a new medical facility, Health-care, is to

be located in Delhi. The location factors, weights, and
scores (1 = poor, 5 = excellent) for two potential sites are
shown in the following table. What is the weighted score for
these sites? Which is the best location?

7. Custom Furniture Co. currently has 100 employees and has

forecast quarterly demand as shown in Table 8.11. The
historical average production rate is 40 units per employee
per quarter, and the firm has a beginning (safety stock)
inventory of 1,000 units. The hiring and training cost is Rs.
400 per employee, and the layoff cost is Rs. 600 per
employee. Inventory is carried at a cost of Rs. 8 per unit per
quarter. Use the data to develop an aggregate plan that

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uses variable employment and inventory to meet demand (5

Points)

8. Given the accompanying supply, demand, cost, and

inventory data for a firm that has a constant work force and
wishes to meet all demand (that is, with no backorders),
allocate production capacity to satisfy demand at minimum
cost (5 Points).

9. A university registrar has adopted a simple exponential

smoothing model ( a = 0.4) to forecast enrollments during
the three regular terms (excluding summer). The results are
shown in the following table (a) Use the data to develop an
enrollment forecast for the third quarter of year 2. (b) What

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would be the effect of increasing the smoothing constant to

1.0? (5 Points)

10. A food processing company uses a moving average to

forecast next month’s demand. Past actual demand (in
units) is as shown in the following table (5 Points)
A. Compute a simple 5-month moving average to forecast
demand for month 52.
B. Compute a weighted 3-month moving average, where
the weights are highest for the latest months and
descend in order of 3, 2 and 1.

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