{"id":10289,"date":"2024-03-26T21:17:59","date_gmt":"2024-03-26T10:17:59","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=10289"},"modified":"2024-03-26T21:19:43","modified_gmt":"2024-03-26T10:19:43","slug":"mdbm2043-operations-management-individual-assignment","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/mdbm2043-operations-management-individual-assignment\/","title":{"rendered":"MDBM2043\/ Operations Management Individual Assignment"},"content":{"rendered":"

MDBM2043\/ Operations Management Individual Assignment Answer<\/strong><\/h3>\n

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Question 1<\/strong>\u00a0<\/strong><\/h3>\n

MCM Manufacture is considering three sites, A, B and C at which to locate a factory to build its new-model automobile. The goal is to locate at a minimum-cost site, where cost is measured by the annual fixed plus variable costs of production. The company has gathered the following data:<\/p>\n\n\n\n\n\n\n
Site<\/strong><\/td>\nAnnual fixed cost, RM<\/strong><\/td>\nVariable Cost per auto produced, RM<\/strong><\/td>\n<\/tr>\n
A<\/td>\n10,000<\/td>\n2,500<\/td>\n<\/tr>\n
B<\/td>\n20,000<\/td>\n2,000<\/td>\n<\/tr>\n
C<\/td>\n25,000<\/td>\n1,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Based on the above information:<\/strong><\/p>\n

    \n
  1. Construct the total cost curves for all locations (use graph paper to construct the graph)<\/em>.<\/li>\n
  2. Determine which location to choose for each relevant range of production.<\/li>\n<\/ol>\n

    Question 2<\/strong><\/h3>\n

    Home Deco Enterprise uses special wallpaper which it orders from an outside supplier. The information about the orders is as follows:<\/p>\n\n\n\n\n\n\n
    Annual demand<\/td>\n3000 rolls<\/td>\n<\/tr>\n
    Ordering Cost<\/td>\nRM20 per order<\/td>\n<\/tr>\n
    Holding Cost<\/td>\n20% of the item price<\/td>\n<\/tr>\n
    Price<\/td>\nRM15 per roll<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    The company is offered the following discounts on the basis price:<\/p>\n\n\n\n\n\n
    For order quantities<\/td>\n200 \u2013 299<\/td>\nLess 20%<\/td>\n<\/tr>\n
    <\/td>\n300 \u2013 399<\/td>\nLess 30%<\/td>\n<\/tr>\n
    <\/td>\n400 and above<\/td>\nLess 40%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

     <\/p>\n

    Determine the optimal order quantity that will minimize the annual inventory cost.<\/p>\n