OM Assignment 01

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Operations Management

Assignment 01

Course Instructor: B. Dayal(PhD)

ARTICLE REVIEW

● Note: All questions are compulsory.


Q1. A new medical facility, Health-care, is to be located in Fishiganet. The location
factors, factor rating and scores for two potential sites are shown in the following table.
Which is the best location based on factor rating method?

Location factor Factor Rating Rating for locations

Location 1 Location2

Facility utilisation 30 3 5

Total patient per month 25 4 3

Average time per emergency trip 20 4 5

Land and construction costs 15 1 2

Employee preferences 10 5 3

Q2. The new Health-care facility is targeted to serve seven census tracts in Ethiopia.
The table given below shows the coordinates for the centre of each census tract, along
with the projected populations, measured in thousands. Customers will travel from the
seven census tract centres to the new facility when they need healthcare. Details of seven
census tract centres, coordinate distances along with the population for each centre are
given below. Find the target area’s centre of gravity for the Health-care medical facility.

S No. Census tract X Y Population (in hundred thousands)


1 A 2.5 4.5 2

2 B 2.5 2.5 5

3 C 5.5 4.5 10

4 D 5 2 7

5 E 8 5 10

6 F 7 2 20

7 G 9 2.5 14

Q3. Potential locations X, Y and Z have the cost structures shown below. The ABC
company has a demand of 1,30,000 units of a new product. Three potential locations X,
Y and Z having following cost structures shown are available. Using break even
analysis, select which location is to be selected and also identify the volume ranges
where each location is suited?

Location X Location Y Location Z

Fixed costs 150,000 350,000 950,000

Variable costs (per unit 10 8 6


product)

Q4. The XYZ Ltd. carries a wide assortment of items for its customers. One of its
popular items has annual demand of 8000 units. Ordering cost per order is found to be
Rs. 12.5. The carrying cost of average inventory is 20% per year and the cost per unit is
Re. 1.00. Determine the optimal economic order quantity.

Q5. We want to develop a precedence diagram for an electrostatic copier that requires
a total assembly time of 66 minutes. Table below give the tasks, assembly times, and
sequence requirements for the copier. The firm determines that there are 480
productive minutes of work time available per day. Furthermore, the production
schedule requires that 40 units be completed as output from the assembly line each day.

Tasks Performance time Preceding activities


(In minutes)

A 10 -

B 11 A
C 5 B

D 4 B

E 12 A

F 3 C,D

G 7 F

H 11 E

I 3 G,H

(a) Make the precedence diagram

(b) Determine:

(i) Work station cycle time

(ii) Minimum No. of work stations required.

(iii) Efficiency

(iv) Efficiency if one more work station is added.

● Submissions should be made on your LMS only.


● File name should contain your name and your ID No.
● For any Questions about the assignment, you can use this link and forward me
your questions via message.

B Dayal: Public profile (yic.edu.et)

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