Question 4 (Total 20 marks) XYZ Co. Ltd. is a Hong Kong based company and they have their own factory in Shenzhen, China. They have two suppliers A & B.XYZ management has identified three performance dimensions for supplier evaluation: cost quality and on-time production. XYZ management has established importance weights of 0.2.0.5 and 0.3 for cost quality, and on-time production, respectively. You, as an operation manager at XYZ have rated the performance of suppliers A and B with regard to these three dimensions. Their ratings (1=poor to 5=excellent) are as follows: Performance ratings Supplier B Performance dimension Supplier A Cost 5 3 Quality 4 5 On-time production 3 5 a) Use the weighted-point evaluation system to calculate the weighted average performance for suppliers A and B and determine the best supplier based on the total score of performance. (4 marks) b) XYZ Co. Ltd can buy 80,000 units of accessories from either supplier A or supplier B. From supplier A, accessories are shipped by rail, taking 16 days at a cost of $1,600. While from supplier B, it takes 4 days at a cost of $3,500 by truck. The accessories' holding cost per unit per year is $0.25 and holding cost will be incurred during the delivery. Assume 250 working days per year. Calculate the total cost of buying the accessories from suppliers A and B respectively and determine the best supplier based on the total cost. (Hints: calculate the daily holding cost first - Show your calculation steps) (4 marks) c) From the finding in question 3a and 3b, pick either supplier A or supplier B as your own selection and identify one potential supply chain risk of your choice, and suggest one tactic for risk mitigation. (3 marks) d) In order to execute the Lean Manufacturing, seven wastes (or termed as the 7 Mudas in Japanese) must be identified and removed. As an operation manager in XYZ and in your own opinion: - Which one is the easiest to be implemented and maintained in your plant? Explain why. (3 marks) - Select the one that you believe is most difficult to improve in your plant. Explain why. (3 marks) e) XYZ would like to implement Just-in-time (JIT) operation system, the operation manager is invited to work on three matters: () Reduce Inventory: ) Reduce Lot Size, and () Reduce Setup Cost. Discuss and give one reason each to support (or otherwise) your viewpoints. (Total 3 marks)