Answer any two $(2)$ questions from this section $(30$ Marks$)$Q$2$a$.$ A publishing company plans to replace its four proofreaders who look for errors in manuscripts with

a new scanning machine and one proofreader in case the machine breaks down. Currently the proofreaders

check $15$ manuscripts every week between them. Each is paid $$80,000$ per year. Hiring the new scanning

machine will cost $$5,000$ each calendar month. How will this new system affect the proofreading

department's productivity? $(5$ Marks$)$

The 'forensic science' service of a European country has traditionally been organized to provide separate

forensic science laboratories for each police force around the country. In order to save costs, the

government has decided to centralize this service in one large central facility close to the country's capital.

Q$2$b$.$ What do you think are the external advantages and disadvantages of this to the stakeholders of the

operation? $(5$ Marks$)$

Q$2$e$.$ What do you think are the internal implications to the new centralized operation that will provide

this service? $(5$ Marks$)$

Q$1.$ Midwest Precision Control Corporation is trying to decide between two alternate Order Plans for its

inventory of a certain item. Irrespective of the plan to be followed, demand for the item is expected to be

$1,000$ units annually. Under Plan A$,$ Midwest would use a teletype for ordering; order costs would be $$40$

per order. Inventory holding costs $($carrying cost$)$ would be $200$ per unit. Under Plan B$,$ order costs would

be $30$ per order. And holding costs would be $20\%$ of unit Cost $($unit cost $=480).$

Find the following.

a$)$ The Economie order quantity $($EOQ$)(5$ Marks$)$

b$)$ Total Inventory Cost $(5$ Marks$)$

c$)$ Decide which Plan would result in the lowest total inventory cost? $(5$ Marks$)$

Q$2$a$.$ A publishing company plans to replace its four proofreaders who look for errors in manuscripts wit

a new scanning machine and one proofreader in case the machine breaks down. Currently the proofreadet

check $15$ manuscripts every week between them. Each is paid $$80,000$ per year. Hiring the new scannin

machine will cost $$5,000$ each calendar month. How will this new system affect the proofreadin

department's productivity? $(5$ Marks$)$

The 'forensic science' service of a European country has traditionally been organized to provide separa

forensic science laboratories for each police force around the country. In order to save costs,

government has decided to centralize this serviee in one large central facility close to the country's capit

Q$2$b$.$ What do you think are the external advantages and disadvantages of this to the stakeholders of $t$

operation? $(5$ Marks$)$

Q$2$c$.$ What do you think are the internal implications to the new centralized operation that will provi

this service? $(5$ Marks$)$