Usaid bin Arshad

Bba 182023

ANS 1
CHAPTER: Process selection and facility layout
TOPIC:  Basic process model
BUSINESS MODEL: batch processing model
CHARACTERISTIC:  Batch production relates to repetitive production It concerns the
manufacture of commodities which are known beforehand in their quantities. This is the
method of production in which identical products are manufactured in batches according to
client demand or predicted product need.
In general, this method is comparable to work production with the exception of production
quantity. A lot or group of products are manufactured at the same time instead of
producing a single product, as in the case of job production. One batch of products may not
look like the next batch. It should be remembered here. They are semi standardized goods
and services.
PROS:
It is less expensive to make an entire batch of a product than a single item at a time.
Machinery may be used more efficiently and can save money for the company.
Reduces the danger or risk of focusing on a single product and enables flexibility
The overall waste is decreased by creating the right quantity of essential products
CONS:
Each batch can be thoroughly controlled and assured of quality that could result in
additional downtime for employees.
Increased storage costs for huge amounts of manufactured goods
Due of the batch production procedure, the product cannot be personalised or unique to a
single consumer.
EXAMPLES:
A company wants 20 electric motors to be manufactured. The labour is separated into various
operations. In the first batch, the first operation on all motors is completed and then the second
operation is carried out. Before the next operation, the second group of operators will complete the
first operation. The same operators construct a complete machine under work production and not
just one operation. The manufacture of batch can do a significant part reap the benefits of repetitive
manufacturing, if the batch is large enough. Batch production may therefore, via sequence of
transactions, be described as the creation of a product in small or big batch, each activity performed
throughout the complete batch prior to any following transaction. This is usually applied for biscuit
and clothing and motor production as well as for medications, stainless foods and equipment such as
nozzles and bolts etc.

Some examples of batch production are-

1) Newspapers
2) Magazines
3) Clothing
4) Computer Chips
5) Baked goods
6) Machine Tools, etc.

CASE STUDY

UPD MANUFACTURING

Answer a:
Order interval or order quantity = 89 x 6 = 534 units
EOQ = (2ds/H) square root
(2 x 89 x 32)/0.08 = 267
TC of EOQ = (Q/2) x H + (D/Q) x S
(267/2) x 0.08 + (89/267) x 32 = $21.3466

TC of fixed order quantity = (d/q) x S + (q/2) x H

(89/534) x 32 + (534/2) x 0.08 = $26.6933

Difference in TC of EOQ and TC of FOI = $26.6933 - $21.3466 = $5.3467

$5.3467 x 52 weeks = $278.02
As shown, if EOQ is employed, the overall cost will be lower than it is in FOQ, saving $ 278.02 on an
annual basis, which is a significant sum. However, UPD manufacturing requires a robust inventory
management, as well as a clear forecast of demand and timings for when inventory is to be ordered.
How long it will take to deliver, what the lead time is, and so on.

ANS B
UPD can only continue to use order ranges if they can have good inventory planning, which
helps them fulfil client demand, smoothes their activities and ensures they are not out of
stock and profit from the order cycle. The decision is dependent on several additional
considerations, including prediction, location and lead time.
ANS C
I believe that inventory management is vital for this company, because they are producers
and receive orders on a large scale even if modest inventory mismanagement or a lack of
stocks contribute to production delays or delays in commencing operations which may lead
to customers loss in the future. Sometimes, the order is cancelled only as the order is not
finished on time. Even in such companies the cost is high because the production is likewise
high, and the costs of storing inventory or waste inventory are, for every reason, much more
than any other tiny company.
Ans 14
CHAPTER: Product and Service design
TOPIC: Product design
CHARACTERISTIC: both are done for the betterment of the society wand eco system 

PROS: a healthy population free society with less wastage and damage to eco system and sea
animals
CONS: expensive and may not durable and process of recycling and can cause pollution
EXAMPLES:
Careem offers their customers to contribute to society by using their bonus points to plant a tree or
educate a child. they have fixed amount of points that will be used in order of completion of one
task such as planting a tree.