1. Suraya has conducted a comprehensive study on four cities, one of which will be selected as the site to locate her seafood restaurant. The three potential sites and their rating with regards to three intangible factors are as follows:

Factors / City	A	B	C
Labour availability	Very Good	Good	Good
Accessibility to public transport	Satisfactory	Very Good	Excellent
Proximity to customers	Poor	Satisfactory	Satisfactory

Of all the intangible factors described above, labour availability is considered as the most important factor, followed by accessibility to public transportation and proximity to customers. Based on the data tabulated above, which city should be selected and why?

(6 marks)

2. Mtec Sdn Bhd is considering opening its second factory due to the overwhelming acceptance of its newly design product called Turbotec. Its operation manager has surveyed on two locations, Johor Bharu and Seremban. Both locations have the production capacity. The annual fixed costs associated with Johor Bharu are RM20,000 and the variable costs are RM2.00 per unit. The annual fixed costs associated with Seremban are RM30,000 and the variable costs are RM1.50 turbotec sells for RM15.00 each.

1. Using break-even point for each location, where should Mtec Sdn. Bhd. Locate its second factory?

(4 marks)

2. At what volume of output, would the two locations incur the same costs?

(2.5 marks)

3. Construct the total cost lines for both locations on a single graph and determine over what range of quantity are both locations preferable.

QUESTION 2 Mr. Zulkifly Mansor, the operations manager of Cleaner Air Air-condition Manufacturing Plant wants to set up a line to produce 60 units per hour. The work elements and their precedence relationships are shown below: Work Element Predecessor Time A None 40 B A 30 A 50 D B 40 E B 6 F 25 G 15 H D.E 20 1 F,G 18 J 30 HT Required: a) Compute the required cycle time of the line. (1.5 mark) b) Draw the precedence diagram of the operation. (4 marks) c) What is the theoretical minimum number of stations? (1 mark) d) Construct the line layout of the operation. (3 marks) e) What are the resulting efficiency and balance delay percentages? (2 marks) f) If a worker works 8-hour per day and wage costs RM50 per day compute the cost of idleness? (2 marks)