Question: QUESTION 1 Operations management has always been associated with manufacturing activities, but in truth it can also be applied to the service sector. With appropriate

QUESTION 1

Operations management has always been associated with manufacturing activities, but in truth it can also be applied to the service sector. With appropriate examples, discuss TWO (2) major differences between service and manufacturing organizations.

(20 Marks)

QUESTION 2

Jozan Manufacturing uses a Kanban system for a component part. The daily demand is 800 brackets. Each container has a combined waiting and processing time of 0.34 days. The container size is 50 brackets and the safety factor () is 9 percent.

1. How many Kanban card sets should be authorized?

2. What is the maximum inventory of brackets in the system of brackets?

3. What are the answers to (1) and (2) if waiting processing time is reduced by 25%?

4. If we assume one-half the containers are empty and one-half at any time, what is the average inventory in the system for the original problems?

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