Question

Capacity Planning (5)

Name the issues that influence the effectiveness of Capacity.

Aggregate Planning (9)

Briefly explain and graphically illustrate aggregate plannings position within the sequence of an organisations planning activities.

Operations Management Challenges (6)

How can productivity be measured and which are the factors that influence productivity

Economic Order Quantity (15)

Pombilis Entertainment Centre sells 20 000 cases of Jumbo Beer per year. The holding costs are estimated to be N$ 25 per case and the costs of placing an order amount to N$ 40 per order.

The business is open for 355 days per year.

Determine:

i) the optimal economic order quantity (EOQ) (4)

ii) the total annual inventory costs (4)

iii) if the holding costs increase to N$ 50 per case, what will the total annual inventory costs amount to?