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Section A - Short answers (10 marks)

1.     Discuss, using an example of your choice, how layout design helps improve productivity. (4 marks)


2.     Use an example that you are familiar with to explain why it is advisable for a firm to consider a product as a "bundle of services". (4 marks)


3.     List and discuss 4 things that would make you choose one university over another. (2 marks)





Section B - Long answer (10 marks)

Use a local example to discuss how layout design helps improve operations.

Section C - Calculations (30 marks) Question 1: Project Management (15 marks)

The City Council of Bhootnagar has decided to build a botanical garden and picnic area in the heart of the city for the recreation of its citizens. The precedence table for all activities required to construct this area successfully is given below.


Code

Activity

Description

Time (hours)

Immediate Predecessor(s)

A

Planning

Find location; determine resource requirements

20

None

B

Purchasing

Requisition of lumber and sand

60

Planning

C

Excavation

Dig and grade

100

Planning

D

Sawing

Saw lumber into appropriate sizes

30

Purchasing

E

Placement

Position lumber in correct locations

20

Sawing, excavation

F

Assembly

Nail lumber together

10

Placement

G

Infill

Put sand in and under equipment

20

Assembly

H

Out-fill

Put dirt around equipment

10

Assembly

I

Decoration

Put grass all over the garden, landscape, paint

30

Infill, out-fill

a)     Draw an AON network for the construction project. (10 marks)

b)     What is the minimum duration of the project? (5 marks)


Question 2: Managing Inventory (15 marks)

Prasad's Computer Training School in Lautoka stocks workbooks with the following characteristics:


Demand D                  = 19,500 units/year Ordering cost S                                   = $25/order Holding cost H          = $4/unit/year


a)     Calculate the EOQ for the workbooks. (5 marks)

b)     What are the annual holding costs for the workbooks? (5 marks)

What are the annual ordering costs? (5 marks)

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