Determine the reorder level based on the average of lowest and highest demand data above for 250ml, 500ml, 1.5liters, and 5-gallon bottle with 2 days lead time so that the production will not stop.
Ques (20 marks) Oman Oasis bottled water is produced using a single standard fully automated process, which aims to guarantee the highest safety standards for drinking water and ensure that it is following health standards. Its market covers the entire Sultanate and in different forms, 250 ml, 500 ml, 1.5 liters, and 5 gallons to cater to the different segments of the market. The production runs on a 6 days a week, 8 hours per day with 10 production employees, and the production process can be summarized into 1) Filtration, 2) lonization, 3) Reverse Osmosis, 4) Ozonation and 5) Bottling Process and Packaging. The bottling process is a separate four-line automated process to accommodate the different bottle sizes and contents; then, the last process is the packaging. The capacity of production is 25,000 of 250ml; 20,000 of 500ml; 10,000 of 1.5ml and 7,500 of 5-gallon in an 8-hour work per day. The lowest annual demand for 250ml, 500ml, 1.5 liters and 5-gallon bottles are 10,800,000; 12,600,000; 7,200,000 and 4,860,000 respectively while the highest demand is 35% higher from the lowest demand. Plastic bottles are the only important inventory that is critical to production. Given the lowest and highest annual demand and the average usage and lead time to deliver is 2 days. a) Which layout is the most appropriate for Oman Oasis? Justify why it is the most appropriate. b) Design/Draw a floor layout that is appropriate for Oman Oasis based on the production process, c) Based on the given demand (lowest and highest), identify specific production problems. Justify quantitatively and descriptively why it is considered as a problem; provide specific solutions. d) If you are the quality control personnel, explain possible ways of how you will ensure the quality of the finished products. e) Determine and justify the most appropriate inventory technique. 1) Determine the reorder level based on the average of lowest and highest demand data above for 250ml, 500ml, 1.5liters, and 5-gallon bottle with 2 days lead time so that the production will not stop. g) Determine possible practical actions to ensure an uninterruptible supply of plastic bottles. Justify your answers