BJMP2033 Final Ind Assignment Online Questions Oct 2020 Feb 2021

BJMP2033 / PRODUCTION & OPERATIONS MANAGEMENT
SEMESTER OCT-FEB (2020-2021) / (A201) – AN INDIVIDUAL ASSESSMENT (100%)
SCHOOL OF TECHNOLOGY MANAGEMENT & LOGISTICS

COLLEGE OF BUSINESS, 06010 SINTOK, KEDAH
AN INDIVIDUAL FINAL ASSIGNMENT

SEMESTER OCTOBER - FEBRUARY 2020/2021 (A201)
BJMP2033
PRODUCTION AND OPERATIONS MANAGEMENT
FRONT PAGE
OF STUDENT
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SIGNATURE
INSTRUCTIONS:
1. THIS IS AN INDIVIDUAL ASSIGNMENT DESIGNED TO REPLACE THE FINAL
EXAMINATION AND TREATED AS A COURSEWORK.
2. THIS INDIVIDUAL ASSIGNMENT IS CONSISTING OF FOUR (4) QUESTIONS
WHICH EACH QUESTION IS CARRYING 25 MARKS.
3. STUDENTS MUST ANSWER ALL THE QUESTIONS AND SUPPLEMENT WITH
EVIDENCE (WORKS AT THE WORKING SPACE).
4. THE TIME FRAME FOR COMPLETING THE INDIVIDUAL FINAL ASSIGNMENT IS
APPROXIMATELY: 4 HOURS (2.00 – 6.00 PM)
5. DOWNLOAD THE DOCUMENT (MICROSOFT WORD) FROM WHATAPPS,
TELEGRAM, OR PADLET.
6. WRITE THE ANSWERS IN THE SPACE BLANK PROVIDED.
7. THE COMPLETED DOCUMENT IN PDF FORMAT MUST BE SEND TO:
aaaaaaaa@uum.edu.my / WhatsApp / Telegram (XXX-XXX XXXX)
8. THE SUBMISSION DATE IS: 12 JANUARY 2021 (TUESDAY)
QUESTION ONE (25 MARKS)
1
A. High-Eight Enterprise produces cooking oils

for domestics’ markets. The enterprise
operates with three shifts per day within a
week and producing about 1400 units of 1-kg
in an hour operation. Due to continuous
demand from retailers, the enterprise must
justify the demand which roughly 140,000
units per week. Once orders are confirmed,
the transport will be in two weeks with a $450
per order. Meantime, the undelivered bottles
must be inventoried with a cost of $0.20 per
unit. The enterprise operates 50 weeks per
year and can tolerate stockouts 7% for any circumstances with a standard deviation of a
dozen units.
Based on the above statement, answer all the following questions:
1) The design capacity for the enterprise.

(2 MARKS)
2) The optimum number of ordering.

(2 MARKS)
3) The total cost of inventories per year.

(2 MARKS)
4) The optimal number of production runs (orders) per year.
2
(1 MARK)
5) The optimum cycle times.

(1 MARK)
6) The length of time to receive orders.

(1 MARK)
7) The maximum inventory levels.

(2 MARKS)
8) The reorder point and safety stocks.

(2 MARKS)
B. Veggie Fresh Enterprise is supplying veggie

sandwiches in UUM Mall all over the year.
The expected demand is 200 units per week.
The supply can be purchased from either AM
3
Enterprise or PM Enterprise. Their price lists are shown in the table. Both enterprises
make the delivery at cost of $30 within two working days. The annual holding cost per unit
is $3. The service level is at 95% with standard deviation is equal to daily demand.
AM Enterprise PM Enterprise
Quantity Unit Price Quantity Unit Price
1 – 499 $16.00 1 – 399 $16.20
500 – 999 15.50 400 – 799 15.00
1000 + 14.00 800 + 14.10
1) What is the optimal order quantity?

(2MARKS)
2) Which supplier should be used? Compare by Total Costs.

(3 MARKS)
3) What are the reorder point and the safety stock?

(2 MARKS)
C. Outbreak of Covid-19 has caused some disruption to business. Based on

information given, illustrate the Pareto Chart with Ms. Excel and suggest THREE
(3) recommendations what should the company do for survival?
(5 MARKS)
 No impact – it is business as usual for us = 5%
 Little impact – we are monitoring the situation = 22%
 Medium impact – it has caused some disruption = 35%
 Significant impact – we have rolled out contingency plans = 26%
 Huge impact – our business has been severely affected = X%
 Total = 100%
4
QUESTION TWO (25 MARKS)
5
A. Blue Eyes Anchovy company is planning to manage their raw material for next four
months. They have a plan for future demand markets by producing ‘Budu in Tube’ for
international consumers such as
Australia, New Zealand, United Kingdom
and Japan. They have ending inventory
with 10 units. Based on the given
information in the tables; quarterly based
– 4 months aggregate plan, supply
capacity and costs/other data, complete
two questions as follows:
 transportation method
 optimum production plan
Sales Period & Supply Capacity

Month Jan Feb March April
Demand 255 295 324 362
Capacity
Regular 235 255 290 300
Overtime 20 24 26 24
Subcontracting 12 16 18 18
Beginning inventory 10
Cost Information
Inventory cost $5
Regular production cost $15
Overtime production cost $24
Subcontracting production cost $42
1) Complete the table below using the transportation method:

(4 MARKS)
Tempoh Tempoh Penggunaan Kapasiti Kapasiti

Pengeluaran Period of Use Tidak Capacity
Digunakan
Period of Production Jan Feb March Apr Unused
Capacity
Inv. Awalan 0 5 10 15
Beg.
Inventory
6
Masa Biasa 15 15
20 20
25 25
30
Regular
Lebih Masa 24 29 34 39
Jan
Overtime
Sub Kontrak 42 47 52 57
Subcontract
Masa Biasa
Regular
Lebih Masa 24 29 34
Feb
Overtime
42 47
Sub Kontrak 52
Subcontract
Masa Biasa 15 20
Regular
Lebih Masa 24 29
Mar
Overtime
Sub Kontrak 42 47
Subcontract
15
Masa Biasa
Regular
Lebih Masa 24
Overtime
Apr 42
Sub Kontrak
Subcontract
Permintaan
Demand
2) Complete an optimum production plan.

(1 MARK)
PELAN PENGELUARAN
PRODUCTION PLAN
Pengeluaran
Masa Permintaan Biasa Lebih Masa Subkontrak Inventori Akhir
Period Demand Regular Overtime Subcontract Ending Inventory
Production
7
Jan
Feb
March
April
JUMLAH
TOTAL
3) Calculate the total production costs.

(1 MARK)
B. Complete TWO (2) strategies in aggregate planning as shown in the following tables
based on given information:
1) Use level production strategy, OT, and S/K not more than a worker and BKO as needed.
(4 MARKS)
Jan Feb March Apr May June July Aug Sept Oct
4000 8000 6000 2000 7000 3000 5000 6000 8000 11000
Current work force 10 workers
Production per worker 500 units per month
Inventory holding cost $0.30 per unit
Regular wage rate $20.00
Overtime wage rate (OT) $30.00
Sub-contracting wage rate (S/K) $40.00
Backordering (BKO) $50.00
Hiring cost $1500 per worker
Firing cost $3000 per worker
Beginning inventory 1,000 units
Mth Demand Regular Over S/K Inventory BKO Workers H F

Production Time
Jan 4000
8
Feb 8000
Mar 6000
Apr 2000
May 7000
June 3000
July 5000
Aug 6000
Sept 8000
Oct 11000
Total 60,000
Calculate the cost:
2) Use a mixed method strategy; Jan – June, use level production with OT and S/K not more
than a worker and BKO as needed. While July – October, use chase production and
workers as needed.
(4 MARKS)
Jan Feb March Apr May June July Aug Sept Oct
4000 8000 6000 2000 7000 3000 5000 6000 8000 11000
Current work force 10 workers
Production per worker 500 units per month
Inventory holding cost $0.30 per unit
Regular wage rate $20.00
Overtime wage rate $30.00
Sub-contracting wage rate $40.00
Backordering (BKO) $50.00
Hiring cost $1500 per worker
Firing cost $3000 per worker
Beginning inventory 1000 units
Mth Demand Regular Over S/K Inventory BKO Workers H F

Production Time
Jan 4000
Feb 8000
Mar 6000
Apr 2000
9
May 7000
June 3000
July 5000
Aug 6000
Sept 8000
Oct 11000
Total 60,000
Calculate the cost:
3) Which strategy is the best? (1

MARK)
C. Ethical Dilemma
Based on a case study of “An Ethical

Dilemma: A Case from the Aviation Industry”
as attached in the Appendix 3, answer the
following questions.
1. Discuss the major ethical problem Emma encountered in her new workplace. What could
be done in order to prevent such a dilemma from occurring in the first place? What main
premises might have contributed to the development of unethical decision making at
EastJet?
(4 MARKS)
10
2. What parties are involved in the situation described? Is unethical decision making silently
supported only by EastJet employees? Analyze possible economic, legal, and ethical
consequences of the unethical decision making for all the parties and central characters
involved.
(3 MARKS)
11
3. Did Susan give good professional advice to Emma? Why? If you were Emma, what steps
would you take in the situation described? Why?
(3 MARKS)
QUESTION THREE (25 MARKS)
A. A manager of ARB Enterprise wants to determine the number of containers to use for
incoming parts for a Kanban system to be installed next month. The daily process
produces 2,000 units of anti-roll bars for FMG Automobiles. The operations of the
enterprise are off on Sunday each week and only closed entirely two weeks in a year.
The enterprise supply at least a thousand units per day to their customers’ requisition.
Once order is registered, the transport will deliver within a month with a cost of $200.
Excess production is stored in HG Warehouse with $26 per unit. As precaution
measure, As precaution measure, the enterprise keeps their stocks about 9% and 500
units as standard deviation.
1) What is the size of the container?
(2 MARKS)
12
2) What is the number of Kanban?

(3 MARKS)
B. A project manager wanted to reduce eight weeks from the projected completion time of
the GTR Project in Sintok, Kedah.
1) Fill in the blanks and based on information provided in the table, answer all questions:
(4 MARKS)
Activit Predecessor Normal Normal Cost Crash Crash Cost Time Crashing Cost
y Time ($) Time ($) Reduction Per Week ($)
A - 12 12,000 11 13,000
B - 9 50,000 7 64,000
C A 10 4,000 5 7,000
D B 10 16,000 8 20,000
E B 25 125,000 15 200,000
F A 10 10,000 6 16,000
G C 35 500,000 25 530,000
H D 40 1,200,000 35 1,260,000
I A 15 40,000 10 52,500
J E, G, H 4 10,000 1 13,000
K F, J, I 6 30,000 4 34,000
Totals - -
2) Calculate the activity slacks and determine which activities are on the critical path:
(3 MARKS)
Activity Earliest Latest Earliest Latest Slacks Critical
Start Start Finish Finish Path
13
3) Construct the AON node configuration diagram with new completion time.
(5 MARKS)
14
4) Why is it important for managers to know where the slack is in their projects?
(3 MARKS)
5) Calculate the total of crash costs and new project costs.
(2 MARKS)
Activity Weeks Crash Cost ($)
15
6) What is the probability if the project can be completed in 64 weeks? Given the project
variance = 4. Illustrate the normal curve diagram.
(3 MARKS)
16
QUESTION FOUR (25 MARKS)

A. Based on the MRP diagram below, complete the MRP tables based on the given lot
sizing together with costs. Given the ordering cost and holding cost are $1000 per order
and $0.50 per unit.
B2 C D3
E2 F3 E2 F2
1) Complete the MRP table with lot size: LOT FOR LOT
(2 MARKS)
MRP Record Part Name: A

Lead Time = 1 week
Safety Stock = 50
Lot Size = L4L Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
Gross Requirements 50 100 40 100 80 170 30
Scheduled Receipts 40 20 10 60
Available Inventory 80
Net Requirements
Planned Order Receipts
Planned Order Releases
Cost:
17
2) Complete the MRP table with lot size: MULT 50

(2 MARKS)
MRP Record Part Name: B

Lead Time = 1 week
Safety Stock = 70
Lot Size = MULT 50 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
Gross Requirements
Scheduled Receipts 20 50 40 90 10
Net Requirements
Cost:
3) Complete the MRP table with lot size: POQ 2

(2 MARKS)
MRP Record Part Name: C

Lead Time = 2 weeks
Safety Stock = 0
Lot Size = POQ 2 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
Gross Requirements
Net Requirements
Cost:
4) Complete the MRP table with lot size: MIN 130

(2 MARKS)
MRP Record Part Name: D

Lead Time = 1 week
Safety Stock = 60
Lot Size = MIN 130 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
Gross Requirements
Net Requirements
Cost:
18
5) Complete the MRP table with lot size: FOQ 200

(2 MARKS)
MRP Record Part Name: E

Lead Time = 1 week
Safety Stock = 90
Lot Size = FOQ 200 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
Gross Requirements
Scheduled Receipts 170 110 140 290 100 10
Net Requirements
Cost:
6) Complete the MRP table with lot size: LOT FOR LOT
(2 MARKS)
MRP Record Part Name: F

Lead Time = 3 weeks
Safety Stock = 100
Gross Requirements
Scheduled Receipts 220 500 340 900 300 100
Net Requirements
Cost:
7) Summarize the results from the MRP calculations above into the Planned Order Report.
(2 MARKS)
PLANNED ORDER REPORT

PERIOD
Part Name/Item Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17
A
B
C
D
E
F
TOTAL
19
B. Based on the statement of BOM for Product A, and the information from the table below
(table of inventory record data), develop the:
Statement of Bill of Material (BOM)
- Product A is developed from three sub-components/items of C, D, and E.
Table of Inventory Record Data
DATA CATEGORY COMPONENTS/ITEMS

A C D E
Gross Requirement 100 (in week 1, 5) - - -
250 (in week 2,7)
200 (in week 3, 4)
Safety Stock 30 50 - 20
Lot Sizing L4L MIN 150 MULT 60 FOQ 100
Explosion - 2 3 -
Lead Time 1 week 2 weeks 1 week 2 weeks
Scheduled Receipt 100 (in week 1) 200 (in week 1) 280 (in week 1,4) 30 (in week 1, 5)
80 (in week 3) 150 (in week 2) 450 (in week 2) 50 (in week 3)
40 (in week 5,7) 130 (in week 3) 350 (in week 6) 80 (in week 6)
280 (in week 6)
Available Inventory 10 150 180 100
1) Construct the MRP diagram/ BOM of Product A

(2 MARKS)
20
2) MRP tables for the next 7 weeks for items A, C, D, and E. Calculate the cost if the Co =
$1200 and Cc = $1.25 per unit.
(a) Item A with Lot Size: Lot for Lot

(2 MARKS)
MRP Record PART NAME: A
Lead Time = 1 week
Safety Stock = 30
Gross Requirements
Scheduled Receipts
Net Requirements
Cost:
(b) Item C with Lot Size: MIN 150

(2 MARKS)
MRP Record PART NAME: C
Lead Time = 2 weeks
Safety Stock = 50
Lot Size = MIN 150 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Gross Requirements
Scheduled Receipts
Net Requirements
Cost:
(c) Item D with Lot Size: MULT 60

(2 MARKS)
MRP Record PART NAME: D
Lead Time = 1 week
Safety Stock = 0
Lot Size = MULT 60 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Gross Requirements
Scheduled Receipts
Net Requirements
21
Cost:
(d) Item E with Lot Size: FOQ 200

(2 MARKS)
MRP Record PART NAME: E
Lead Time = 2 weeks
Safety Stock = 20
Lot Size = FOQ 100 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Gross Requirements
Scheduled Receipts
Net Requirements
Cost:
e) Summarize the results from the MRP calculations above into the Planned Order Report.
(1 MARK)
PLANNED ORDER REPORT

PERIOD
Part Name/Item Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
A
C
D
E
TOTAL
22
END OF QUESTIONS
APENDIK 1
23
24
APENDIK 2
N = dL + S S = LS-ES
R = dL
C
Avg agg value of inventory

D/Q opt (COGS)/(365 days)
Cost of goods sold

Good quality x 100
Avg Aggregate Value of
(I)(unit processing cost) + (reworked units)(rework cost)
Inventory
Y= Product Cost = (Kd)(I) + (Kr)

Y = (I)(%g1)(%g2)(%g3)… (I)(%G) + (I)(1-%G) (%R) (R)
Y
No. production runs = D/Q
Output/Material
Business Days
Output/Labour
D/Qopt
CoD + CcQopt + PD
Qopt 2
v = __cf_____
p - cv
Q (1 – d/p)
25
APENDIK 3
An Ethical Dilemma: A Case from the Aviation Industry
26

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BJMP2033 / PRODUCTION & OPERATIONS MANAGEMENT

SEMESTER OCT-FEB (2020-2021) / (A201) – AN INDIVIDUAL ASSESSMENT (100%)

SCHOOL OF TECHNOLOGY MANAGEMENT & LOGISTICS

AN INDIVIDUAL FINAL ASSIGNMENT

QUESTION ONE (25 MARKS)

A. High-Eight Enterprise produces cooking oils

Based on the above statement, answer all the following questions:

1) The design capacity for the enterprise.

2) The optimum number of ordering.

3) The total cost of inventories per year.

4) The optimal number of production runs (orders) per year.

5) The optimum cycle times.

6) The length of time to receive orders.

7) The maximum inventory levels.

8) The reorder point and safety stocks.

B. Veggie Fresh Enterprise is supplying veggie

1) What is the optimal order quantity?

2) Which supplier should be used? Compare by Total Costs.

3) What are the reorder point and the safety stock?

C. Outbreak of Covid-19 has caused some disruption to business. Based on

QUESTION TWO (25 MARKS)

Sales Period & Supply Capacity

1) Complete the table below using the transportation method:

Tempoh Tempoh Penggunaan Kapasiti Kapasiti

2) Complete an optimum production plan.

3) Calculate the total production costs.

Mth Demand Regular Over S/K Inventory BKO Workers H F

Calculate the cost:

Mth Demand Regular Over S/K Inventory BKO Workers H F

Calculate the cost:

3) Which strategy is the best? (1

Based on a case study of “An Ethical

QUESTION THREE (25 MARKS)

2) What is the number of Kanban?

5) Calculate the total of crash costs and new project costs.

QUESTION FOUR (25 MARKS)

MRP Record Part Name: A

2) Complete the MRP table with lot size: MULT 50

MRP Record Part Name: B

3) Complete the MRP table with lot size: POQ 2

MRP Record Part Name: C

4) Complete the MRP table with lot size: MIN 130

MRP Record Part Name: D

5) Complete the MRP table with lot size: FOQ 200

MRP Record Part Name: E

MRP Record Part Name: F

PLANNED ORDER REPORT

Statement of Bill of Material (BOM)

- Product A is developed from three sub-components/items of C, D, and E.

Table of Inventory Record Data

DATA CATEGORY COMPONENTS/ITEMS

1) Construct the MRP diagram/ BOM of Product A

(a) Item A with Lot Size: Lot for Lot

(b) Item C with Lot Size: MIN 150

(c) Item D with Lot Size: MULT 60

(d) Item E with Lot Size: FOQ 200

PLANNED ORDER REPORT