FORMATIVE ASSESSMENT $2$Read the insert below and answer the questions that followProcter & Gamble $($P&G$)$ is a multinational consumer goods corporation and one of the world's largest and most recognizedcompanies in its industry. Founded in $1837$ by William Procter and James Gamble, the company has grown to become aglobal leader in the production and marketing of a wide range of household and personal care products. P&G is known forits extensive and diverse portfolio of consumer goods, including beauty and grooming products, health and wellness items,household care, and baby care products. Some of its well$-$known brands include Pampers, Tide, Gillette, Pantene, Olay,and Crest. Procter & Gamble is a global consumer goods giant with a rich history, a diverse product range, and acommitment to innovation and sustainability. Its household brands are fixtures in many homes worldwide, reflecting itsinfluence and impact on the consumer goods industry.Jon R Moeller, the CEO of Procter and Gamble $($P&G$)$ has requested your services in responding to some of the strategicissues facing the operations management function of the organisation. He has provided you with a number of scenarios thatthe organisation has been exposed to and thus requests that you draft a report providing the best response in dealing witheach scenario.Scenario$\mathrm{.}25$DescriptionThe CFO has been informed that the costs related to inventory include the purchase cost,which amount to R$500$ per order, also included are the actual labor costs involved inordering, customs inspection, arranging for airport pickup, and delivery to the plant,maintaining inventory records. The costs of holding of storage, damage, insurance, taxes,and so foth categorised as holding costs are determined on a square$-$metre basis. Theseequal R$150$ per unit per year. With added emphasis being placed on efficiencies in theSupply chain, P&G$\text{'}$s CEO has asked you to evaluate costs associated to inventory controlof wool as it presents opportunities of improved cost savings. Advise on the ideal numberof units of wool that should be ordered to minimise costs, in addition comment on the ROPfor wool given the information provided. Lastly, indicate the downside of depending on theEOQ model for an organisation such as P&G$.$One of the regional offices of P&G$,$ located in Malawi, assembles, and sells premium$(20)$diapers $($pampers brand$).$ The supplies for the product are procured from variousmanufacturers worldwide. Most of the components are procured from wholesalers inSouthern Africa, some critical items, such as wool, come directly from their manufacturerbased in Asia. For instance, the wool is shipped directly from Asia using agents whosubmits an order release once every $4$ weeks. P&G$\text{'}$s annual requirements total $500$ units$(2$ per working day$),$ and P&Gs per unit cost is R$1,500.$ The suppliers always promisedelivery within $1$ week following receipt of an order release, there has never been anyexperiences of material shortages $($lead time amounts to $5$ working days.$)($Make use of relevant calculations and examples when answering questions.$)[100$ MARKS$]$Considering this determine the forecasted profit for a store with sales of R$10$ million andR$30$ million respectively.P&G operates a dozen retail shops in Johannesburg, South Africa. Their signature item is$(10)$a hamper including baby diapers and baby oil. Sales $($x$,$ in millions of rands$)$ are related toProfits $($y$-$hat, in hundreds of thousands of rands$)$ by the regression equation y$-$hat $=7\mathrm{.}21+1\mathrm{.}76$ x$.$ResponseweightingAs an analyst you have been requested to utilise the exponential smoothing technique to $(10)$predict merchandise returns in one of the branches for P&G$.$ Given an actual number ofreturns of $154$ items in the most recent period completed, a forecast of $172$ items for thatperiod, and a smoothing constant of $0\mathrm{.}3,$ determine the forecast for the next period? Andcomment on how the forecast would change if the smoothing constant were adjusted to$0\mathrm{.}6?$ Your response should clearly explain the differences in terms of responsiveness.Given the information provided advise the CEO on the qualitative factors that P&G needsto consider in selecting the best location. Quantitatively determine the best location inwhich the factory should be placed. Suppose now that the demand for each storeincreases by $200\%$ where should the new factory be positioned in this case?P&G is deciding on where to locate its new factory which will be responsible for serving$|(20)$four grocery stores, each with a demand of $10,000$ units. If the coordinates of the storesare $(108,112),(110,50),(40,85),$ and $(10,25).$DRC to maat demand t minim$$um onet ueina the tranenartotian mathad Netermina thaThe following supply, demand, cost, and inventory data $($provided below$)$ has been made $(20)$available to you by the CEO. He has requested you to allocate production capacity for