with guiding steps

operations management

A building materials supplier obtains its bagged cement from Dangote, a manufacturer in Ndola. Demand is reasonably constant throughout the 50 week year, and last year the company sold 1,275,000 Kgs of this product. It estimates the costs of placing an order at around K250 each time an order is placed and calculates that the annual cost of holding inventory as 25% of purchase cost. Each time an order is placed, the cement is only received after two weeks. The company purchases a 50Kg bag of cement at K60 each. a) How many bags should the company order each time? [10 Marks] b) Enumerate five advantages and disadvantages of Dangote keeping excessive bags of cement in anticipation of the high demand. [10 Marks] c) An ePaint Internet store is open 3M days per year. If annual demand is 10,000 gallons of Ironcoat paint and the lead time to receive an order is 10 days, determine the reorder point for paint. [5 Marks] THE COPPERBELT UNIVERSITY SCHOOL OF BUSINESS Test One BSP 236 Question 1 Operations Management (2022 FT) a) Consider the following actual demand data for a company: i. Compute the seasonal indices for the four quarters. [5 Marks] ii. When does the company experience the largest seasonal effect? iii.Developthesimplelinearregressionmodel.iv.Developquarterlyforecastsforthefourquartersofyear5.[4Marks]6Marks] [6 Marks] v. Explain the Executive Committee Consensus Method outlining its strength and weaknesses. [4 Marks]