5 Q OPERATIONS MANAGEMENT

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  1. Amazon company is considering opening a new branch in Saudi Arabia, and they need to choose the best location to sale a volume of (2,000) units per month for each branch, the expected selling price per unit is (SR 120).
    The selected locations are three locations according to the data for each one:
    1. Dammam, the fixed cost is (SR 30,000), variable cost (SR75)
    2. Riyadh, the fixed cost is (SR 60,000), variable cost(SR 45)
    3. Jeddah, the fixed cost is (SR 110,000), variable cost(SR 25)
    4. Calculate the following:
    5. The total cost at each location.
    6. Graph the total cost line for each location.
    7. The profit at the lowest cost location
    8. Over what range of monthly volume is each facility going to have a competitive advantage?
    9. What is the volume at the intersection points between the deferent locations cost lines?
  2. Question 25 PointsAl Baik restaurant plans to have a distribution location to serve four restaurants located according to the coordinate data and shipping volume to each one:
    1. Jeddah branch located at coordinate (5,6), the shipped volume (2,000)
    2. Tabuk branch located at coordinate (3,12), the shipped volume (2,000)
    3. Hail branch located at coordinate (13,13), the shipped volume (1,000)
    4. Riyadh branch located at coordinate (9,11), the shipped volume (1,000)
    5. By using the center of gravity method, what should be the coordinate location of the distribution center?
  3. Question 35 PointsSubway company plans to open a new branch, and they need to choose a proper location between three regions according to the following factors:
    1. Makkah with score of (Space= 60), (Cost= 50), (Traffic density= 55), (Neighborhood income = 40), (Zoning laws=20).
    2. Riyadh with score of (Space= 120), (Cost= 90),(Traffic density= 80), (Neighborhood income = 60), (Zoning laws=50).
    3. Dammam with score of (Space= 70), (Cost= 60), (Traffic density= 55), (Neighborhood income = 40), (Zoning laws=20).
    4. The weight for each factor is (Space= 0.30), (Cost=0.25), (Traffic density= 0.20), (Neighborhood income = 0.15), (Zoning laws=0.10).
    5. At which region should Subway open the new branch?
  4. Question 45 PointsSharp company needs to reduce their inventory cost by determining the optimal quantity of material to be obtained per order, the company operates 200 day-working year according to the following data:
    1. -The annual demand is (1000 units)
    2. The ordering cost is (SR 10) per order.
    3. -The holding cost per unit is (SR 50)
    4. -Daily production rate is (8 units daily)
    5. -Daily demand rate is (4 units daily)
    6. Calculate the following:
    7. The optimal quantity of material to be obtained per order
    8. The minimum total cost for the inventory
    9. The expected numbers of orders
    10. The expected time between the orders
    11. The optimal production quantity
  5. Question 55 PointsAn apple store has a demand for (8,000) iPhones per year, the firm operates a 250 day- working year, the average delivery of an order takes (3 working days).

    Calculate the following:

    1. The demand rate
    2. The lead time
    3. The reorder point without safety stoke
    4. The reorder point with one day safety stoke