Distance Learning Centre
Ahmadu Bello University
Master's in Business Admii
2023 September Semester Examination (WEEKEND GROUP)
Course- BUAD 802 — Operations and Operations Management
Question one
Let’s say you own a company which is a manufacturer of fans. You have three different locations
where they are manufactured. Let, P1, P2 and P3 be the plants in different parts of Nigeria. Let
W1, W2 and W3 be the warehouses. Hach plant has a capacity and basis that they have a supply
capability. Let,
+ Supply capacity of plant P1=40 units/day
+ Supply capacity of plant P2~ 35 units/day
+ Supply capacity of plant P3 = 70 units/day i
Now the demand of cach warchouse is 45, 65 and 35 units/day respectively. ‘There is a certain cost
associated with supplying the fans from plants to warchouses. Let Cij ~ Cost, where iis the source
and j is the destination. ‘The transport/unit cost for all possible combinations is as follows:
jou 2hunit C21 Shani ‘31 = 8/unit
| |
{cl2 4funit |c22 G6hunit C32 = Sfunit
| |
C13 = 3/unit |c23 = 3/unit C33 1S/unit
So, the question is, how many fans should be transported from cach plant to ihe warehouses so
that the overall cost is minimized while mecting the demand and supply. (12.5 marks)Question Two
Managing operations can be enclosed in a frame of general management function as operation
managers are concerned with planning, organizing, and controlling the activities which affect
human behaviour through models. Discuss the framework for managing operations. (12.5 marks)
Question Three
Locational analysis is a dynamic process where entreprencur analyses and compare the
appropriateness or otherw site for a given
enterprise. Discuss (12.5 ma
ic of alternative sites with the aim of selecting the bes
rks)
Question Four
Plant layout is an important decision as it represents long-term commitment and instrumental in
achieving organivational objectives. Discuss the importance of plant layout and how instrumental
it can be in achieving the objectives of an organizational. (12.5 marks)
Question Five
‘The John Equipment Company estimates its carrying cost at 15% and its ordering cost at $9 per
order. The estimated annual requirement is 48,000 units at a price of $4 per unit
Required:
What is the most economical number of units to order? (2.5 marks)
Tow many orders should be placed in a year? (5 marks)
How often should an order be placed? (S marks)
(12.5 marks)
Question Six
i. Disouss the general steps in the forecasting process. (6.5 marks)
ii, Discuss the applications of forecasting. (6 marks)