18 Jun WHICH LOCATION WOULD YIELD THE GREATEST PROFITS?
A s s i g n m e n t 2
Due date
:
Friday 2
3
rd
September 2016
,
Value: 15 % of your overall course mark
Length: approximately 300 – 500 words in each question
S e c t i o n A : S h o r t A n s w e r s ( 1 0 M a r k s )
1. Discuss with examples from the Pacific Island Countries, the problems and
issues of supply chain management . (3 marks)
2. Discuss the benefits of internationalizing operations on the supply chain of
private sector organizations. (3 marks)
3. Critically discuss the role and importance of inventory management at the
workplace. (4 marks)
S e c t i o n B : E s s a y s ( 1 0 M a r k s )
Discuss the strategic importance of strategic of supply chain management.
Explain the issues and opportunities in the supply chain management.
(10marks)
Section C: Calculations (30 Marks)
Question 1 (10 marks) Location Planning and Analysis
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the
same labor and materials costs (food, serving containers, napkins, etc.) of $1.60 cents per sandwich. Sandwiches sell for $2.56 each in all locations. Rent and
equipment costs would be $5,070 per month for location A, $5,580 per month for location B, and $5,710 per month for location C.
a) Calculate is the total cost function for each location? (2 marks)
b) Plot the total cost functions on the same graph? (2 marks)
c) On the graph, identify the range of output for which each location has the
least cost? (2 marks)
d) Which location would yield the greatest profits? (2 marks)
e) Determine the volume necessary at each location to realise a monthly
profit of $9500. (2 marks)
Question 2 (20 marks) Project Management
The data given below describes Mere’s Construction Project.
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