UNIVERSITY OF MALAYA, EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION ACADEMIC SESSION 2012/2013: SEMESTER 2 CMGB6104: OPERATIONS MANAGEMENT JUNE 2013 TIME: 2 HOURS INSTRUCTIONS TO CANDIDATES: Section A; Candidates must answer all questions in this section. Section B: Candidates are required to answer any two (2) questions from this section Diagram/illustration must be drawn clearly. (This question paper consists of 4 questions on 7 printed pages)CMGB6104 SECTION A 1, (a) Using relevant examples, evaluate the key factors thal affect location decisions of intemational facilities. (20 marks) (0) Discuss some of the supply chain management issues that managers need to address, in order to ensure that the supply chain supports the firm's quick response strategy (20 marks) 27CMGB6104 SECTION B 2. The following data shows total imports for year 2012 in one of the ASEAN countries, i Month Imports ($ Billion) ay 31.64 2 February m2 3 “Maren ae 4 April 36.22 5 May 30.98 Ce June 32.84 7 July 29.50 8 August | 26.40 Q September 32.10 40 October 30.26 a November 25.90 42 December 32.38 a) Compute the forecast for April 2012 to January 2013 using a three-month weighted moving average (weights 3, 2, 1) (40 marks) b}) Use exponential smoothing with a =0.5 to estimate forecast values from February 2012 to January 2013. For the beginning forecast, use the average of the first three periods. (12 marks) ©) Which of the above two methods should be used for accurate forecasting? Justify your answer by using MSE technique. (8 marks) airCMGB6104 3. Shac-T-Well is opening up a new retail outlet. The whole project consists of many activities that are to be completed in a specific order. The activities and estimated activily times are shown in the following table’- | Activity | Immediate | 1 Predecessors A > 3 a _ cc) 3s a 70 | E “~ 8 F i 4 co 6 a+ ERE I [ H 5 J HW 5 K t T 4 by J 2 uM | KL 4 2) Draw the project network diagram. (6 marks) b) Calculate the earliest time that the project can be compieted. (10 marks) ¢) Identify the critical path activities in this project. (14 marks)CMGB6104 4. Trissul Corporation uses 750 units of special glass tubes per month in a product it manufactures. Trissul Corporation purchases the special glass tubes from a supplier. The ordering cost is $10 and each glass tube costs $20, The holding cost is 10% of the glass tube price. The supplier offers the following discounts:- | Order Quantity | Discount = (100-449 2% i a a (900 or more B% ed | (a) Evaluate the various discount options and advise the management on the ‘optimal number of glass tubes that Trissul Corporation should order at a time. (24 marks) (b) Calculate the total annual material cost with the optimal order quantity. (6 marks) END 5I?CMGB6104 FORMULA : 1. Eoonomie Order Quantity = /2PS/, 2. Annual Setup Cost = 25 3. Annual Hoiding Cost = ou 4. Average inventory level = Maximum inventory level 2 Reorder point =dxL Expected number of orders = N2 8. Length of production cycle = eg 10. EF=ES+t 11. LS=LF-t 12. S=LS-ES or S=\F-EF 13. Cycle time = Producti vailable per da Units required per day casktimes 14. Minimum no. of workstations = 15. Efficiency = 2 fask times (actual number of workstations) X (largest assigned cycle time) 16. in demand in previous n periods Moving average = EAeMand previous prods £ fusight for perad) Weighted _ __ (demand in period np tal. ys Fastdihs-Fill wnere F, = new forecast F..4 = previous forecast 0 = smoothing (or weighting) 87cmGa6104 Fr afA,.4) + (1 -llF..4# 7.3) Te= BUF = Frosh #1 - BVT Mean Absolute Deviation (MAD) pa ZlAetual Forecast —_—_—_ Mean Squared Error (MSE) ¥ (Forecast Errors)? MSE 7 Mean Absolute Percent Error (MAPE) Lronpetua, -Forecast}iActual, ‘APE = 7"