NUMBER FOUR (a) Explain the following terms as applied in competitive situations: i) Degeneracy ii) Pure strategy iii) Mixed strategy iv) Dominance rule (2 marks) (2 marks) (2 marks) (2 marks) (b) Bascom Ltd. has decided to launch a new product in addition to its range of products. The following information is available: 1. The new product may be distributed through any combination of the two company warehouses W, and W2 2. The available monthly production capabilities for the new products are: 1000 units at plant A 2000 units at plant B 1000 units at plant C 3. Three major concentration points of customer demand are at locations X, Y and Z which are estimated to have a monthly demand of: 900 units at K 800 units at L 900 units at M 4. The unit production costs amount to Sh.30, Sh.40, Sh.10 at A, B and C respectively. 5. The unit handling costs at the warehouses amount to Sh.20 and Sh.30 at W, and W2. 6. The unit transportation costs from plant to warehouse and unit delivery cost from warehouse to customers are as shown below: Required: Transportation cost schedule. Warehouses Plants A B C W Sh. Sh. 60 60 50 50 130 40 Delivery costs schedule Locations Warehouses A B K L M Sh. Sh. Sh. 30 50 80 50 30 90 Determine the optimum production and distribution schedule to minimize total cost. NUMBER FIVE (12 Marks) (Total: 20 Marks) Partel Ltd. was formed ten years ago to provide business equipment solutions to local business. It has separate divisions for research, marketing, product design, technology and communication services, and now manufactures and supplies a wide range of business equipment. To date the company has evaluated its performance using monthly financial reports that analyze profitability by type of equipment. The managing director of partel Ltd. has recently returned from a course in which it has been suggested that the "Balanced Scorecard" could be a useful way of measuring performance. Required: a) Explain the "Balanced Scorecard" and how it could be used by Equi-solutions Ltd. to measure its performance. b) The managing director of partel Ltd. also overheard someone mention how the performance of their company had improved after they introduced "Benchmarking." Required: Explain "Benchmarking" and how it could be used to improve the performance of partel Ltd. (10 marks) (Total: 20 marks)