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Question 1a

Competitive advantage represents the creation of a system that has an unique advantage over
competitors. The idea is to create customer value in an efficient and sustainable way (Heizer
& Render !"#$%. &n the case of Tal'ing (ough it competes on both differentiation and cost
leadership as it emphasises on its product quality processes and locations.
Differentiation focuses on providing uniqueness that distinguishes an organisation)s
offerings in a way that the customer perceives as adding value (Heizer & Render !"#$%. &n
the case of Tal'ing (ough it differentiates itself by producing all its products using organic
wheat flour sourced from reputable farms. *oreover the company uses only natural herbs
and spices with no artificial preservatives involved to create unique flavours in its breads.
+illings and toppings are also obtained from reliable suppliers and stringent quality controls
are applied throughout the entire ba'ing process. +inally to ensure product freshness for the
customers rapid processing is often required in the centralised ba'eries to meet tight
schedules for swift delivery to the outlets.
Low-cost leadership also 'nown as low,cost strategy refers to achieving ma-imum value as
perceived by customers (Heizer & Render !"#$%. Referring to Tal'ing (ough)s case it is
able to compete based on low cost through having centralised ba'eries instead of setting up
ba'eries in every outlets. .s a result the company is able to consolidate orders from all its
outlets to obtain economies of scale through bul' purchasing. *oreover since Tal'ing (ough
ensures rapid delivery of its products to the various outlets it helps lower its inventory
holding cost at the warehouse. &n the end the company is able to bring its costs down while
maintaining product quality.
/n the aspect of operation management it involves performing a set of activities that creates
values in the form of goods and services by transforming inputs into outputs (Heizer &
Render !"#$%. &n the case of Tal'ing (ough)s venture into China there are ten ma0or
decisions required of the company to ensure business success.
#. 1roduct needs to be attuned to the Chinese)s culture as their food tastes and
preferences would be different. &mplementing new fillings and toppings on its breads
such as combination of 2astern and 3estern food styles to better suit the tastes and
preferences of the Chinese to attract customers.
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!. Compromising of food quality is deemed as eliminating its 5nique 6elling 1roducts
completely. &n addition providing new addition of some other natural ingredients
apart from the natural herbs and spices that has used can ensure success in the
business operation.
7. 1rocess and capacity design involves loo'ing into the process on how to produce its
offerings to the Chinese and also to source for appropriate and reliable machineries
and equipment to support production processes.
$. 9ocation selection of the company)s centralised ba'eries and shops in China is
critical as this can impede the freshness of breads and unba'ed dough. (istance
between centralised ba'eries and shops must not be too far away to prevent the
shipment time from affecting the freshness of Tal'ing (ough)s breads and unba'ed
dough. Having more than one centralised ba'ery at each district of 6hanghai provides
shortest breads) and unba'ed dough)s delivery time to shops and its lead,time.
8. 9ayout design of each centralised ba'ery can determine the amount of breads and
unba'ed dough produced each day due to factors such as the flow of flour and
ingredients amount of space amount of wor'ers and type of machineries used.
:. Human resources and 0ob design reflect on wor'ers) productivity and wor'ing
environment. 1lacing wrong wor'ers at certain wor'stations can lead to an inefficient
production. 6ituations such as producing bad quality breads and unba'ed dough or not
producing desired amount of breads and unba'ed dough on time could happen. This
in return may also cause high 0ob dissatisfaction among wor'ers and it might
eventually lead to high turnover rate.
;. 6upply Chain *anagement involves establishing lean manufacturing ultimately in the
way that space is planned sufficiently to fit a desired amount of wor'ers and
machineries to produce the desired amount of breads and unba'ed dough required
each day and of course facilitates a smooth process flow.
<. &nventory such as those of raw materials have to be planned received allocated and
controlled to ensure the highest quality provided within the given time and warehouse
layout. This highly involves the allocation of wor' in process items and the finished
goods as well.
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A. 6cheduling the delivery of the raw materials help leverage critical time in producing
the finished goods in time.
#". *aintenance of the bread and dough,ma'ing machine to up'eep its performance.
1eriodic maintenance for the machine can help to improve the level of productivity in
the process layout. &t can effectively increase or decrease the outcome of the finished
goods the bread and dough.
&n conclusion ma'ing correct strategic /perations *anagement decision in the mentioned
areas will assist Tal'ing (ough in maintaining improving and creating competitive
advantages and increase Tal'ing (ough)s chance of success in its new venture in China.
Question 1b
&nternational operations strategy is where operations managers of international or
multinational firms approach global business with four operational strategies (Heizer &
Render !"#$%. 2ssentially it comprises four main operational strategies namely &nternational
6trategy *ultidomestic 6trategy Blobal 6trategy and Transnational 6trategy.
&n the case of Tal'ing (ough Transnational 6trategy is deemed the most appropriate
international operations strategy for the company should it decides to enter the China mar'et.
6imply it allows operating decisions to be decentralised to each country to enhance local
responsiveness (Heizer & Render !"#$%.
High degree of local responsiveness signifies a company)s prompt response to the tastes and
preferences of whichever country that it operates its business in. .long with the advantage of
having economies of scale it allows materials people and ideas to be shifted across national
boundaries. There will be a cross cultural training to promote openness amongst staff of
different nationalities. . good e-ample is *c(onald)s. *c(onald)s modifies its menu from
country by country according to their varied tastes and preferences to attract customers. .
case in point would be their serving of beer at *c(onald)s stores in Bermany in the effort to
attract local Berman customers. Coming bac' to Tal'ing (ough the company should try as
much as possible to meet the customers) needs and e-pectations by presenting different sets
of menus in 6hanghai to appeal to the targeted mar'et. 6taying current in the local)s taste
buds replacing char sew bread bun in China as a 5nique 6elling 1oint will escalate more
sales and profit due to its popularity.
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High degree of cost reduction is a significant factor for sales increase in its new venture in
China as Tal'ing (ough utilises organic wheat flour to produce its breads which are more
costly than non,organic flour. This means that the cost of Tal'ing (ough producing breads is
much higher. &ncrease selling price with a direct sales increase will incur hefty cost damages
due to 1risoner)s dilemma from its competitors. Hence discovering ways to reduce cost is the
only way to increase profitability. Tal'ing (ough can get organic wheat flour from its
suppliers with lower price due to higher volume purchase. .s an alternative it can acquire its
suppliers) company to have full control of pricing. &t can produce its breads with lower cost
than before and profit margin improves. 3ith possible increase of sales and improved profit
margin it increases the chance of success in Tal'ing (ough)s new venture in China.
&n a nutshell Tal'ing (ough must e-plore deeply into China)s rich culture and food
preference. *oreover it is critical that the company offers a wide variety of breads and
developing new flavours rapidly that suit the tastes and preference of the locals. /nly through
this it helps to ma-imise its competiveness in China.
Question 1c
Tal'ing (ough)s core business is ba'ery and the consultant)s recommendation of setting up a
3estern food restaurant in 6hanghai has indeed raised some of the following concernsC
#. 9ocation selectionC The restaurant will not profitable if it is set up at a place of low human
traffic. *oreover Tal'ing (ough will not be able to conduct proper evaluation of the
population)s tastes and preferences if there are insufficient data.
!. 1opulation age mi- of the different districts within 6hanghaiC The ris' is certainly greater
to set up restaurant at a district where the aging population far e-ceeds that of the younger
ones as the former tends to be less adventurous. Hence the li'elihood of them dining in a
3estern food restaurant is probably a lot lower than their younger counterparts.
7. 2ducational level of the various districts within 6hanghaiC The population)s educational
level typically affects its purchasing power. Benerally the greater the population of
literate the higher the number of 1*2Ts. Biven this it will have a positive impact on
their spending power as their incomes will probably be higher and vice versa. &t is thus
important to also consider the population)s educational level when deciding the location.
$. 2conomic changeC Reference to the recent situation of slower manufacturing growth in
China the population would be more careful with their spending particularly for those in
the manufacturing sector as they fear of losing their 0obs. Thus when e-travagant
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spending such as dining out is reduced restaurant businesses will inevitably be affected.
&t is thus vital to loo' into economic change when comes to venture in overseas.
8. 1olitical,legal environment of ChinaC The rate of ta-ation varies in different countries and
this will certainly affect the bottom line of any company. To cover for the high ta-ation it
might have to increase the price of its products or services but in doing so it might 0ust
price itself out of the mar'et. /ther concern will include the country)s employment laws
as this can result in Tal'ing (ough incurring additional costs for not observing certain
employment law unintentionally. This is definitely not desirable especially for new
venture in overseas that already incurred a huge amount of costs. Hence political,legal
environment is certainly something not to be neglected for venture in overseas.
+inally while addressing the above concerns may not guarantee Tal'ing (ough)s success in
penetrating into the China)s mar'et it will help remove many hurdles that could possibly
impede on its progress.
Question 1d
+orecasting is a process of predicting a future event as it forms the underlying basis of all
business decisions (Heizer & Render !"#$%. 4roadly there are two forecasting approaches
namely qualitative and quantitative. +or best results companies should always see' to
combine both approaches. =evertheless quantitative methods would often require historical
data. &n this respect Tal'ing (ough may not be able to employ these methods at the initial
onset. Therefore the company may only loo' into qualitative forecasting methods such as
Dury of 2-ecutive /pinion (elphi *ethod and Consumer *ar'et 6urvey to conduct its
Jury of Executive Opinion is a forecasting technique that uses the opinion of a small group
of high,level managers to form a group estimate of demand (Heizer & Render !"#$%.
/wners of Tal'ing (ough travelling to 6hanghai on many occasions and sensed the growing
demand for freshly ba'ed bread is an e-ample of EDury of 2-ecutive /pinionF. .lthough
suitable it often produces a wea' forecast as it relies simply on mere opinions of several
high,level individuals. Hence the data derived may not be accurate and could possibly hurt
the company)s resources as a result of relying on the erroneous forecast in ma'ing its
business decisions.
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Delphi Method is a forecasting technique using group process that allows e-perts to ma'e
forecasts (Heizer & Render !"#$%. &t produces a more reliable forecast as compared to the
above method since it requires three different groups of participants namely the decision
ma'ers staff personnel and respondents whose 0udgments are valued. The decision ma'ers
will input the actual forecasting based on the summary of questionnaires and survey results
done by staff personnel. (&t may possibly affect their decisions depending on the feasibility%
before they do the actual forecasting.
.nother qualitative forecasting technique is sales force composite basing on salespersons)
estimates of e-pected sales. =evertheless it is more pervasively used by manufacturers of
products of long lead,time and will only be accurate with historical data and an e-perienced
sales force.
onsumer Mar!et "urvey is another qualitative forecasting method that solicits input from
customers or potential customers regarding future purchasing plans (Heizer & Render !"#$%.
&n effect it produces the most reliable forecast relative to the above methods as it gets the
consumers involved by understanding their wants needs tastes and preferences. 6imple
question such as E3ould you visit our shops that sell 3estern style breads and buns made
from organic wheat flourGF and a E?26H=/F answer will be able to tell which the potential
areas in 6hanghai that Tal'ing (ough may consider when deciding to set up its central
ba'eries and shops. .lso while it was mentioned earlier that quantitative forecasting methods
are not suitable for Tal'ing (ough in the initial onset it however does not apply to linear,
regression analysis of the quantitative forecasting methods. &n fact the consultant should
have combined this method with other qualitative forecasting methods to forecast China)s
potential mar'ets. To elaborate the consultant should first utilise a suitable qualitative
forecasting method to assist him in attaining the independent variable that is required for the
linear,regression analysis. .ssuming that number of potential customer traffic at different
areas is the desired independent variable as it is no doubt a factor to the total number of
customer per month the consultant could combine either the Consumer *ar'et 6urvey or
(elphi *ethod to attain it since either one of them can produce a more reliable forecast than
Dury of 2-ecutive /pinion and input the attained number into the regression equation to
derive with the forecasting values. .ssuming that the regression equation is E=umber of
customers per month in II town (in thousands% J # K ".#" I (=umber of potential customer
traffic per month at II town%F and attained number for independent variable is #"""""
potential the number of customers per month in II town will be ##""". +rom here Tal'ing
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(ough 'nows that the potential amount of customer per month at II town is only ##"""
from the forecast of the consultant. Hence it 'nows that setting up shops at II town is
certainly not optimistic and highly accurate as the consultant uses the forecasting approach of
combining quantitative forecasting method with qualitative forecasting method.
&n summary Tal'ing (ough should try as much as possible to combine both qualitative and
quantitative methods to achieve a more accurate forecast as it helps remove many
uncertainties associated with futuristic pro0ections.
Question #a
5nit 1roduced (L%
1roductivity (1% C !.88
5sing the productivity formula
1 (1roductivity% J L H 9 (5nit produced H 9abour hrs used%
!.88 J !""" H 9
9 J !""" H !.88
9 J ;$<.7# hrs (rounded to ! decimal places%
Total labour hrs per wor'er per month J #:" hrs per wor'er per month
Therefore number of wor'ers J ;$<.7#hrs H #:" hrs
J $.A" (rounded to ! decimal places%
J 8 (round up%
.nticipated increase of !!M in demand of bread
Hence new quantity of breads (units% demanded J !""" - #.!!
J !$$"
5sing the same productivity formula
1 (1roductivity% J LH 9 (5nit produced H 9abour hrs used%
!.88 J !$$" H 9
9 J !$$" H !.88
9 J A8:.<: hrs (rounded to ! decimal places%
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Therefore number of wor'ers J A8:.<: H #:"
J 8.A< (rounded to ! decimal places%
J : (round up%
&ncreased number of headcount H wor'ers J : , 8
J #
&f there is no additional labour (i.e. 8 wor'ers% the increase in productivity has to be
determined. Hence
=umber of wor'ers J 9 H =umber of hours wor'ed
8 J 9 H #:" hrs
=ew 9abour hrs (9% J #:" hrs - 8
=ew 9abour hrs (9% J <"" hrs
=ew quantity of breads (units% demanded LJ !$$"
1 (1roductivity% J LH 9 (5nit produced H 9abour hrs used%
1 J !$$" H <""
9 J 7."8 hrs
&ncrease in productivity (hours% J 7."8 @ !.88
J ".8 hours
&ncrease in productivity (M% J (".8H!.88% - #""M
J #A.:#M (rounded to ! decimal places%
Question #b
. process strategy refers to an organisationNs approach to converting resources into goods and
services with an ob0ective to satisfy customers) requirements and product specifications while
wor'ing within budgets and other managerial constraints (Heizer & Render !"#$%.
2ssentially there are four basic process strategies including 1roduct +ocus 1rocess +ocus
*ass Customisation and Repetitive +ocus.
&n the case of Tal'ing (ough it belongs to the ba'ery industry. /ften such companies
regularly adopt the product,focused strategy where focuses are on producing high volume
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but low variety products. This is evident in Tal'ing (ough)s case as it produces large
quantities of bread but with limited offerings. &n fact it only offers 7 main categories
namely plain bread unba'ed dough and buns with filling and toppings.
.side from producing in high volume but low variety Tal'ing (ough also maintains high
degree of production process standardisation such that each sequential tas' and its time of
completion are adhered to strictly. *oreover it has low 3or' &n 1rogress (3&1% as
production units move swiftly through the facilities i.e. only !" minutes production cycle
time. .lso the entire procedure repeats itself after each cycle time in long and continuous
production runs resulting in efficient processes. .s a consequence Tal'ing (ough does not
require large number of s'illed labour.
.nother feature that is evident in Tal'ing (ough is its operating e-penses. .pparently it
invests heavily on high cost ba'ing equipment but nonetheless only incurs low variable costs
since ingredients are considerably cheap relative to its product value. This is another
characteristic of product,focused process strategy that further reinforces the fact that this
strategy is best suited for the company.
Biven all the above it is apparent that product,focused strategy is best suited for Tal'ing
(ough in view of its production processes high fi-ed cost but lower variable cost.
Question #c
.s rapid processing and delivery are required to meet the deadlines in order to meet the
deadlines hence a production order quantity model is decided upon.
.nnual demand ((% C A:""" units per year
6etup Cost (O% C O78" per order
Holding cost per unit per year (H% C O$" per unit per year
(aily production (p% C 78" units daily
(aily demand (d% C !8" units daily
/ptimal order quantity (2/. H L
2/LH L
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2/LH L
2/LH L
P J !$!$.<; units (rounded to ! decimal places%
J !$!8 units (round up%
8 unitsHbreads J # 'g of flour
# unitHbread J #H8 'g of flour
!$!8 units H breads J !$!8 H 8
J $<8 'g of flour
6ince the amount of flour required for achieving optimal order quantity remains lower than
the ma-imum permissible amount that the warehouse is able to accommodate ($<8 'g of
flour Q 88" 'g of flour% there is no requirement for an e-pansion. =evertheless the plant
manager should loo' into organising the warehouse more efficiently to optimise its storage
Question #d
To determine the most cost effective location for the new frozen semi,processed bread
pro0ect we will employ locational cost,volume analysis based on the fi-ed and variable costs
for the three alternative locations as presented below.
Costs Ruala 9umpur 6ingapore 1enang
+i-ed (O% !8"""" 7A"""" #<""""
>ariable (O%C
*aterial ".88 ".$" ".;8
9abour !.88 #.!8 7.<8
/verhead ".A8 ".;8 #.!8
Total variable (O per unit% $."8 !.$" 8.<8
+rom the above we are able to derive the following formulas for each location)s total cost
9et - be the unit of production
Ruala 9umpur , O!8"""" K O$."8-
6ingapore , O7A"""" K O!.$"-
1enang , O#<"""" K O8.<8-
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+rom the above formulas we proceed to plot out the below graph (see figure !.#%
Fig. 2.1 Cross-over location break-even analysis graph
The crossover point for between 1enang and Ruala 9umpur is 7<<<<.<A while the crossover
point for Ruala 9umpur and 6ingapore is <$<$<.$< (6ee .ppendi- #%.
5nder 9ocational 4rea' 2ven .nalysis
Ruala 9umpur 1enang 6ingapore
Total annual demand A:""" units A:""" units A:""" units
+i-ed cost O!8"""" O7A"""" O#<""""
*aterial cost O".88 O".$" O".;8
9abor cost O!.88 O#.!8 O7.<8
/verhead cost O".A8 O".;8 O#.!8
Total costs O:7<<"" O:!"$"" O;$#:""
The least costly location is the most cost effective location. .t total annual demand of A:"""
breads "in$apore is the most cost effective location with a total cost of only %&#'()'' (6ee
.ppendi- !%.
To conclude 1enang offers the lowest cost up to 7<<<A units. 6ingapore on the other hand
is cheapest after <$<$< units while Ruala 9umpur offers the lowest in between.
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Question *a
Tal'ing (ough underta'es to balance the processing lines in both 6ingapore and 1enang as it
attempts to minimise the imbalance between activities while meeting the required output
(Heizer & Render !"#$%. To achieve this the operations manager must first identify those
tools machinery processes and operating time required of each activity along with
e-amining their precedence relationships. Table # presents the precedence data of Tal'ing
(ough)s typical bread and dough ma'ing line.
+as! +as! description
,erformance time
. /pening the flour bag and weighing the flour #" ,
4 6ieving the flour : .
C 4a'ed bread , automatic mi-er < 4
( 5nba'ed dough @ automatic mi-er $ 4
2 1lain ba'ed bread @ ba'ing < C
+ &ndividual ba'ed bun @ ba'ing : C
B 1ac'aging A ( 2 +
H 1alletising 8 B
Total 8:
Table 3.1 Precedence data
Through the above data we are able to create the precedence diagram as shown in figure !.
Figure 3.2 Precedence diagram
The cycle time is stated in the case as !" minutes while the total tas' time is calculated as 8:
minutes (see figure #%. 3ith this we are able to derive the theoretical minimum number of
wor'stations which is calculated as 7 stations i.e. rounded up from original calculation of !.<

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=umber of wor'stations needed J Total Tas' Time H Cycle Time
J 8: H !"
J !.<
J 7 stations (round up%
+rom the above we 'now that we need 7 wor'stations with a ma-imum cycle time of !"
minutes. Thus we need 7 groupings of tas's in this production line. 3e group by going from
left to right see'ing to ma-imise up to !" minutes per group.
Figure 3.3 Three-station solution to the line-balancing problem
/or!station +as!s
,erformance time
0dle time
# . 4 #: $
! C ( 2 !" "
7 + B H !" "
Total 8: $
Table 3.4 Tabulation o !orkstation assembly line " idle time
+inally with the above information we computed the efficiency of the line balance as
2fficiency J Total Tas' (uration H (Cycle Time - =umber of 3or'stations%
J 8: H (7 - !"%
J ".A777
J A7.77M
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Question *b
To determine the best location to ensure adequate supplies of ba'ed bread and dough reach
the outlets to serve the anticipated demand we will employ the center,of,gravity method as
the co,ordinates and potential demand quantity for the locations are given. Table $
summarises the information needed for the calculation of the center point.
-East-west( north-south.
,otential demand
-customer per month.
?angpu (#7"#7"% #!""""
Diading (7" #!"% 78""""
*inhang (:" $"% !<""""
1udong (A" ##"% 87""""
Table 4 Coordinates and potential demand or the proposed our locations
+rom the above the - and y co,ordinates of the center,of,gravity are calculated as ;".< and
AA.7 respectively (6ee .ppendi- 7%. Biven this Tal'ing (ough has to consider setting up its
central ba'ery at these co,ordinates. +igure 8 shows the various plots of the coordinates with
the center,of,gravity represented by the crosshairs.
+igure 8 Braphical depiction of store locations and center of gravity
Question *c
The below provides a summary of the 'ey information given in the caseC
Types of shipment C Refrigerated truc's or air shipment
(uration of shipment C
7 days (refrigerated truc's%
# day (air shipment%
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.nnual holding cost C O$"H'gHyear
*inimum shipment quantity C 8""'g
Cost per 'g of flour C O8
.dditional shipping cost for shipment via air C O:8"
To ascertain if it is worthwhile incurring the additional shipping cost of O:8" for shipment via
air we first have to obtain the daily holding cost for each shipment via refrigerated truc's to
facilitate a meaningful comparison against the additional shipping cost. &t may be depending
on management decision to ship via the former. The above table provided is as follows with a
consideration of converting one year to 7:8 days. =e-t one multiplies the cost per 'g of flour
i.e. O".## with 8"" 'g (minimum shipment quantity% to obtain the daily holding cost of O88.
Thereafter one multiplies the derived cost by the e-tra ! days to obtain the additional holding
costs (calculated as O##"% for shipment via refrigerated truc' (see below for wor'ings%.
(aily cost of holding per 'g J O$" H 7:8
J O".## H 'g H day
(aily cost of holding product J O".## - 8"" 'g
J O88 per day
! days holding cost J O88 - !
J O##"
6hipment via air is ! days faster but O:8" more
Clearly for a minimum shipment of 8"" 'g it is not worthwhile to complete a shipment via
air as it costs less to hold the product ! days longer (via refrigerated truc'% than it does for the
faster shipping by air i.e. O##" Q O:8".
Having said the above it is often not advisable to base shipment decisions entirely on cost
alone. &n effect there are also many other factors such as shipments) urgency scheduling
ingredients) freshness and other quality variables that can impact the choice of transports.
&ndeed ignoring any of the above variables could potentially lead to a company)s inability to
produce adequately to meet demand which eventually may end in customers) dissatisfaction.
6ome of the implications may include
a% Customers being unhappy if they need the product earlier but earlier shipment (such
as by air% would cost moreS
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b% 3here prices of products are unstable later shipment can potentially lead to customer
profit lossS
c% +or later deliveries there is a higher ris' of customers changing their minds and not
paying Tal'ing (ough for the shipmentS
d% /pportunity cost forgone for longer shippingS
e% Highly probability of delay in shipping (particularly by refrigerated truc's% as a result
of brea'downsS
f% 6poilages as a result of poor refrigerationS
g% 9oss in efficiency and productivity as a result of waiting timeS and
h% (elay payments from customers andHor suppliers which could negatively impact cash
+inally if the holding cost is increased by #<M the cost of holding the product for the
additional ! days is still cheaper than the additional O:8" for shipment by air i.e. O#7" Q O:8"
(see below for wor'ings%.
(aily cost of holding per 'g J O$" H 7:8 - #.#<
J O".#7 H 'g H day
(aily cost of holding product J O".#7 - 8"" 'g
J O:8 per day
! days holding cost J O:8 - !
J O#7"
6hipment via air is ! days faster but O:8" more
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1ppendix 1
ross-over Location 2rea!-even 1nalysis +able
Total cost by 9ocation
Ruala 9umpur 6ingapore 1enang
" O!8""""."" O7A""""."" O#<"""".""
#"""" O!A"8""."" O$#$"""."" O!7<8"".""
!"""" O77#"""."" O$7<"""."" O!A;""".""
7"""" O7;#8""."" O$:!"""."" O7888"".""
$"""" O$#!"""."" O$<:"""."" O$#$""".""
8"""" O$8!8""."" O8#""""."" O$;!8"".""
:"""" O$A7"""."" O87$"""."" O87#""".""
;"""" O8778""."" O88<"""."" O8<A8"".""
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A"""" O:#$8""."" O:":"""."" O;":8"".""
#""""" O:88"""."" O:7""""."" O;:8""".""
Fig. 2.2 Cross-over location break-even analysis table
Cross,over point for 1enang & Ruala 9umpur
O#<"""" K O8.<8 - J O!8"""" K O$."8 -
O8.<8 - , O$."8 - J O!8"""" , O#<""""
O#.<" - J O;""""
- J 7<<<<.<< units (rounded to ! decimal places%
J 7<<<A units (round up%
Cross,over point for Ruala 9umpur & 6ingapore
O!8"""" K O$."8 - J O7A"""" K O!.$" -
O$."8 - , O!.$" - J O7A"""" , O!8""""
O#.:8 - J O#$""""
- J <$<$<.$< units (rounded to ! decimal places%
J <$<$< units (round up%
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Total cost J O!8"""" K (O".88 K O!.88 K O".A8% (A:"""%
J O!8"""" K (O$."8% (A:"""%
J O!8"""" K O7<<<""
J O:7<<""
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Total cost J O7A"""" K (O".$" K O#.!8 K O".;8% (A:"""%
J O7A"""" K (O!.$"% (A:"""%
J O7A"""" K OO!7"$""
J O:!"$""
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J O#<"""" K (O8.<8% (A:"""%
J O#<"""" K O8:#:""
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(:"%(!<""""% K (A"%(87""""% H #!""""
K 78"""" K !<"""" K 87""""
J A":""""" H #!<""""
J ;".<
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($"%(!<""""% K (##"%(87""""% H
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J #!;#""""" H #!<""""
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