QUESTION 4 (35 MARKS)

Smart View Sdn. Bhd. is a camera shop operating in Shah Alam. With the vision to be a good service provider, the company had been growing from selling camera only, to now it has a full range of high tech cameras, video lights, tripods and accessories. The company also ventured into new product, which are variety of drones.

Other than selling products, Smart View Sdn. Bhd also involved with corporate video, event video and animation, advertisement productions and photo sessions project. The company has worked with top corporate companies and industries for over 8 years and is also brand partners with Fuji and KRW Film.

Smart View Sdn. Bhd. also received recognition and awards such as Wildlife Conservation Film Festival, KLEFF Special Merit Awards and HP Awards.

As for the camera shop, it has a favorite model that has annual sales of 150. The cost to place an order to replenish inventory is RM25 per order, and annual inventory costs are RM20. The camera shop is open 310 days per year.

The company also has kept a good record of the breakdowns involving its camera for the past 12 months, as follows:

Number of Breakdowns 0 2 1 3

Frequency of Breakdowns (months) 3 4 2 3

Each time the camera broke down, it cost the company RM290. The management proposed to use a new preventive maintenance scheme to overcome the problem. The new scheme cost RM220 per month assuming an average breakdowns of once per month.

a. As a company that offer services, it has to meet the dateline requested by their customers. In your opinion, describe how the company manage to complete the assigned projects on time? (6 marks)

b. Calculate the followings:

i. What is the economic order quantity? (2 marks)

ii. What is the optimal number of orders per year? (1 marks)

iii. What is the optimal number of days between orders? (1 marks)

c. The company received few awards for their good achievement. Discuss ONE (1) reason why it is necessary for the company to provide high quality products and services. (5 marks)

d. Explain reasons why the company should perform the maintenance record for the cameras. (8 marks)

e. Suggest the best maintenance strategy for the company. You may support your answer with calculation. (12 marks)

( production operation management subject)