CILO 3 - Apply techniques to improve efficiency and effectiveness of operation system to support a firm performance (25 points)

1. Spirit Sandwich is reputed to have the best sandwiches in Bandung. Spirit makes sure its sandwiches have enough meat but needs to monitor the amount of meat on a sandwich in order to control costs. It trains its employees to be able to judge approximately what a 5-ounce portion of meat is. Spirit is concerned that lately, its employees have gotten careless and are adding too much meat to the sandwiches. Each day last week, during the lunch hour, Spirit discretely took 6 portions of meat from sandwiches that were being assembled. It weighed each portion, and those data are presented in Table 1:

Table 1. The data

	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday
Sample 1	5.1	4.8	4.9	4.8	5.2	4.8
Sample 2	5.0	5.1	5.2	5.0	5.0	5.3
Sample 3	4.8	4.9	4.7	4.6	5.3	5.0
Sample 4	5.3	5.0	5.2	5.4	4.8	5.3
Sample 5	4.7	5.5	5.2	5.2	5.2	5/1
Sample 6	5.4	5.3	5.1	5.0	4.8	5.1

Construct an X-bar chart, and an R-chart, and any conclusions that you may give from the charts to Spirit (10 marks).

2. The Supply Manager of a convenience store in Tangerang has to determine the order quantity for item "X" with an annual demand of 30,000 units. To determine the order required a fee of Rp. 10,000.00 per order. Annual storage fee of 20% of the item purchase price per unit. Suppliers are offering the following discounts as listed in Table 2.

Table 2. Quantity discount

Quantity Order	Price per unit (Rp.)
0-299	9,500.00
300-599	9,250.00
600 +	9,000.00

In order to minimize the total cost of the annual inventory, determine the best order quantity (15 marks)