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Q1 Your head of department has asked you to evaluate the alternatives for producing newly designed component on an automatic gluing machine. He gives you

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Q1 Your head of department has asked you to evaluate the alternatives for producing newly designed component on an automatic gluing machine. He gives you the following facts: An old automatic gluing machine valued at RM 150,000 exists in the warehouse that can be modified for the new component. The production line supervisor has given an estimate of RM 25,000 to modify this machine. It is hoped that the automatic gluing machine will be able to meet production requirements at full capacity. Another vendor, CERIA Sdn Bhd, has produced the machine five years ago and can easily do the same modifications for RM45,000. The cooling system used for this machine is not environmentally safe and would require some disposal costs. CERIA Sdn Bhd has offered to build a new automatic gluing machine to be more environmental friendly and a higher capacity for a price RM250,00. For this scenario: (a) Define the problem statement. (2 marks) (b) Explain ONE (1) key assumption. (2 marks) (c) Explain THREE (3) alternatives available. (6 marks)

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