Unformatted text preview: 6. In the context of inventory management, explain what the Reorder Point
7L System and, Periodic Review System of inventory control mean? Include a simple. diagram to illustrate the principle and operation of each system.
5 marks if. What is aggregate planning and explain why aggregate planning IS
necessary in operations management? 5 marks x8. Explain with examples, the difference between ‘5'
it a. Production and Productivity
b. Efﬁciency and Effectiveness 7" 9. Explain role of IT. in decision-making process
10. A retailer expects to sell about 200 unitsmf a product per year. The
storage space taken up in his premises by one unit of this product costs $20 , ”
per year. If the cost associated with ordering is $35 per order what is the economic order quantity given that interest rates are expected to remain
0 . .
close to 10/0 per year and the total cost of one unit is $100. -,._.s_.._ ...
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- Spring '13