$(40$ Marks$)$

Explain in detail what you think the FIVE $(5)$ performance measures mean for Flame Electrical.

$(15$ marks$)$

$1\mathrm{.}2.$ What are the most important of these performance measures for Flame Electrical? Explain.

$(5$ marks$)$

$1\mathrm{.}3.$ Discuss the main reasons for Flame Electrical to hold inventory.

$(15$ marks$)$

$1\mathrm{.}4.$ What seems to influence the stock management policy of Flame Electrical?

$(5$ marks$)$

SECTION B

$[60$ MARKS$]$

Answer ANY THREE $(3)$ questions in this section.

QUESTION $2$

$(20$ Marks$)$

It is almost impossible for any organisation to function properly without some form of inventory holding. Unavailability of goods or services is a cause for customer dissatisfaction. Therefore it is important that the cost of holding inventory is calculated to determine the impact of these costs on the organisation. One measurement that can be used is return$-$oninvestment $($ROI$)$ method. This method can be employed because the monies paid for the inventory can be seen as an investment. The ROI can be calculated by dividing the profits earned after the deduction of taxes by the value of the total assets. The larger the reduction in the holding of inventory, the higher is the ROI. Therefore, firms should minimise inventory holdings in order to maximise shareholder returns.

In light of the above, provide a counter argument for the holding of inventory.

QUESTION $3$

$3\mathrm{.}1.$ Explain how you would identify value drivers within an organisation.

$(20$ Marks$)$

$(10$ marks$)$

$3\mathrm{.}2.$ Provide a brief description on how operations strategy fits into the organisation.

$(10$ marks$)$

QUESTION $4$

$(20$ Marks$)$

$4\mathrm{.}1.$ Explain the different types of international operations strategies.

$(10$ marks

$4\mathrm{.}2.$ Discuss the advantages and disadvantages of outsourcing.

$(10$ mark

QUESTION $5$

$(20$ Mark

Using a relevant diagram, explain the determination of effective and efficient processes.

END OF PAPER