QUESTION 3 (20 Marks) 3.1 Cadbury Schweppes is considering where in town to house its central office (the office must also be located at an existing factory for cost reasons). If there are five factories in the district, with locations and size given in the following table, use the center-of-gravity method to determine at which factory the central office should be placed to minimize the average distance between the office and employees. ( 8 marks) 3.2 Cadbury Schweppes is considering three expansion options. The first is to do nothing (Option A). The next is to leave the current plant open and also open a new larger plant (Option B). Finally, they could close the existing plant and open the new, larger one (Option C). Given the variable costs (VC) and fixed costs (FC) from the table below, calculate the range for which each option minimizes cost. (12 marks) QUESTION 4 (20 Marks) 4.1 The Global Manager for Operations as Cadbury Schweppes has requested you to perform an ABC analysis on the followina set of products. (8 marks) 4.2 The soft goods department for Cadbury Schweppes sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. The organization uses an inventory carrying charge of 27% of the unit cost per year. Determine the optimal order quantity, the order frequency, and the annual holding and setup cost. (6 marks) 4.3 If, through automation of the purchasing process, the ordering cost can be cut to R4.00, what will be the new economic order quantity, the order frequency, and annual holding and setup costs? Explain these results. (6 marks) QUESTION 5 (20 Marks) In the context of Cadbury Schweppes critically discuss how each of the operations management decision areas can be managed to improve its competitive advantage. You need to make use of practical examples and concepts