Assessment Task 1: Assignment
Value:30%
Due date:06-May-2013
Return date:
27-May-2013
Submission method
options
Hand delivery (option applies to
Internal only)
Alternative submission method
Task

The assignment consists of 3 exercises, and the marks for each question
varies. Printouts provided with the prose solutions and explanation of the
POM-QM solutions must be originals. A maximum of 4 printout pages may be
included in the form of POM-QM reports. Students should note that the material
explaining them is more important than the printouts themselves.

This assignment will be marked out of 50 marks but will constitute 30% of
the overall marks for the subject.

Question 1 – Inventory Management
Part A

Riverina Industrial Electronics Distrbutors (RIED) is involved in
distributing electronic components to a range of commercial customers. The
average demand for a particular item of inventory is 640 units per day. The item
is sold at a cost of $20.00 a unit from Regional Computing Components. The
holding cost is 20% per unit per year. It has been established that the cost of
each order in the organisation is $200.00 per order. What is the economic order
quantity and the total cost for this policy?

A second supplier, InfoSys Parts, intends to sell this item at a cost that
is lower ($19.00 per unit). But the minimum order quantity for each order is
10,000 units. Should this item be bought from InfoSys Parts or Regional
Computing Components?
(Assume a 5-day working week, and 50 working weeks a year)
(8 marks)
Part B

Explain how such a basic mathematical model used in this question (the EOQ
or Quantity Discount modes) can be altered to make it more realistic to include
features of safety stock and re-order points.
(5 marks)
Part C

There are a number of modern inventory control methodologies. However, not
many organizations have adopted them. Explain the reasons that modern inventory
control methods and systems are not in popular usage. Discuss also how
organisations can be persuaded to adopt modern inventory control
methodologies.
(5 marks)
Question 2 – Project Management
Part A

Intekma AutoParts (IAP) are planning to expand their factory to cope with
the additional demand for their products and have requested your help as an
external consultant. IAP wants to determine what is involved in the project and
how soon it can be completed. They have asked for a plan in the form of a Gantt
Chart and Critical Path Network with relevant activity times, project duration
and identification of the critical path. In the initial planning stages, you
have decided that there are three major components (or sub-projects) in this
expansion project – building, processing equipment and material handling system.
After spending a few weeks in scoping the work, you have established a list of
activities according to the three major components. Details of these are as
follows :

BUILDING
A1 Design Building
A2 Ordering of Materials
A3 Construction of Building

PROCESS EQUIPMENT
B1 In house Design of Equipment
B2 Detailed Design by Consultant
B3 Tender Exercise for Equipment
B4 Installation and Commissioning of
Equipment

MATERIAL HANDLING SYSTEM
C1 Study of Processing Equipment by
Consultant
C2 Design of Material handling
Equipment
C3 Purchase of Equipment
C4 Installation and
Commissioning

Discussions with contractors and the client have helped you to draw up a
table of estimated durations for the activities and the relationships among them
as indicated below.

Write a report on the project plan to senior management of IAP, offering
sufficient information for senior management to review and understand the
implications of embarking on such a project.

(10 marks)
Part B

You realise that the information that IAP has requested is inadequate and
suitable for only basic planning purposes. In a second section of the report,
present your recommendations on what other information is relevant and what
techniques and systems should be used to plan, monitor and control the
project.
(10 marks)
Question 3 – Transportation problem
Part A

In the past, shipments of blood for 4 hospitals in rural Victoria are
co-ordinated from a cental office. The office draws up periodic delivery
schedules for 4 major hospitals in the region from the blood banks. The blood is
shipped from 3 major blood banks. An auditor has found that the manual technique
involved in deriving the schedules is not cost effective, and the central office
has decided to use mathematical modelling for minimising the costs
involved.

The first step involved the central office collecting data on average
costs, demand and supply. Costs to ship a standard container of blood from each
bank to each hospital have been collated and these are provided below. Also
listed, in the table, are the numbers of containers available in each blood
bank, and the number of containers required by each hospital. All these figures
have been based on average weekly requirements and supply.

As the consultant to the regional blood bank, you are required to determine
the number of weekly shipments from each blood bank to each hospital. Direct
your answers in an attempt to minimise the total costs involved.

Discuss the implications of the solution.
(6 marks)
Part B

Explain what other factors you would consider to create a more realistic
mathematical model. In your answer, discuss whether you would use a different
mathematical modelling technique, or modify the transportation model to include
new parameters.

(6 marks)
Additional Notes

1. Question 1

You can use POM-QM for Windows for this question. Note that
there is a different module for the Quantity Discount Model. Limit your answer
to 350 words for Part B and 350 words for Part C

1. Question 2

For Part 1 of this question, the precedence diagram should be
drawn using the methodology illustrated in the Interact site for this subject.
Use the POM-QM for Windows software only to confirm your
calculations (i.e. to check your answers after you have drawn the network and
calculated the activity times, project duration, etc). The diagram can be drawn
manually, or by using some software such as MS PowerPoint. Limit your answer to
350 words for Part A and 500 words for Part B. This word count will not include
any tables and figures that are incorporated in your answer

1. Question 3

Use the Transportation module in POM-QM for Windows. Limit
your answer to 200 words in Part A, and 350 words for Part B
Rationale

This assignment is based on topics scheduled for the first 6 weeks and
involves the application theoretical concepts and both quantitative and
qualitative techniques. The objective is to develop skills in creating
frameworks and models of typical problems and issues faced in Service Operations
Management, analysing them and interpreting them as part of the decision making
process.
In more specific terms, this assignment aims to:

• enhance understanding of key concepts and issues of Service Operations
  Management;
• develop analytical skills required for drawing up models based on
  information gleaned from short case studies and other data describing various
  situations;
• offer experience in applying contemporary and evolving operations management
  tools, concepts and models to a variety of situations;
• develop skills in analysing models and interpreting the results for
  improving operations performance and for other decision making processes;
• acknowledge the advantages, disadvantages and limitations of these tools;
  and
• offer insights into how theoretical concepts, models and systems can be
  modified and applied in practical or realistic situations.

Marking criteria

Your assignment will be evaluated on the following criteria:

• critical and analytical thinking in addition to logical reasoning
• adequate use of the resources for this subject
• evidence of a good understanding of the concepts, systems and models in
  Service Operations Management
• evidence of the ability to apply the tools and models studied.

Presentation
Assessment criteria for
content

1. The assignment should answer the question set i.e. it should cover all
   aspects of the topic without omissions or additions. (If you are in doubt about
   the requirements, contact the subject coordinator).
2. The assignment should focus on the issues raised in the specific
   units/topics listed in the headings at the beginning of the assignment
   details.
3. The assignment should provide evidence of breadth and depth of reading and
   that you have read the relevant parts of the set text(s) and supplied readings
   with references based on different sources. Assignments not adequately
   referenced will not achieve a pass grade. The Author/Date style of referencing
   is preferred e.g. (Jones 1989, p. 123).
4. A bibliography of the books, journal articles and other sources cited must
   be included at the end of the assignment. This should be an alphabetical listing
   by author of the sources cited with full details in the format recommended by
   the University’s Division of Library Services (see details below). Note that
   references to subject mail packages should be cited by the name of the author,
   not the package code or name, as should readings within mail packages. This
   applies both to references/citations in the body of the assignment as well as in
   the bibliography.
5. Word limits:Students mustobserve the word limits indicated
   for assignments. Over length assignments willbe penalised. Considerably
   over length assignments will not be marked.

Assessment criteria for
presentation

1. The assignment should be written in a report style of writing making use of
   headings and sub-headings as well as short concise paragraphs. Point format
   should be used within a paragraph structure where appropriate. A systematic
   approach should be taken in the use of headings e.g. lower case bold for section
   headings lower case italics bold for sub-headings, lower case italics for
   further sub-divisions etc.
2. The style of writing should be clear and concise, paying attention to
   sentence structure to ensure clarity of meaning. Attention should also be paid
   to punctuation, including the correct use of commas and the
   apostrophe.
3. Assignments should not be typed using double spacing, as it is difficult to
   read. Single or 1.5 spacing should be used and a line should be left between
   paragraphs. A plain font such as Times New Roman no less than size 12 should be
   used and the print should be reasonably dark.
4. A 5cm margin should be left on the left-hand side of each page for comments
   and each page should be numbered. If being posted, pages should be fastened
   securely in the top left-hand corner. Assignments should not be secured any
   other way or enclosed in folders, binders etc