QUESTION $5$

$(20$ marks$)$

ABC Analysis classifies inventory into three categories according to some measure of importance with the intention of

allocating control efforts accordingly. The idea is to establish inventory policies that focus resources on a few critical

inventory parts and not the many trivial ones. It is not realistic to monitor inexpensive stock with the same intensity as

very expensive items.

You are provided with the following information. Conduct an ABC analysis, categorising each item of stock

appropriately. $(80\%=A,15\%=B,5\%=C)$

END OF PAPER

DATA SHEET$-$A

$Q,=$ order quantity

EOQ,$=$ optimum order quantity $Q^{**}$

$D,=$ annual demand $in$ units

$S,=$ setup $or$ ordering cost for each order

$H,=$ holding $or$ carrying cost per unit per year $in$ rands

$p,=$ daily production rate

$d,=$ daily demand rate

$P,=$ price QUESTION $1$

$(40$ Marks$)$

By applying Porter's methods on comparative advantage, conduct a detailed analysis of how the decision to relocate will

affect Apple's operational competitive advantage.

SECTION B

$[60$ MARKS$]$

Answer ANY THREE $(3)$ questions in this section.

QUESTION $2$

$(20$ Marks$)$

A company makes manufactures shoes. It produces $1000$ pairs of shoes per month. It buys the leather and

components from a supplier at a cost of R$20$ per component kit. The company's inventory carrying cost is estimated to

be $15\%$ of the purchasing cost per tyre and the ordering is R$50$ per component kit.

You are required to calculate:

$2\mathrm{.}1.$ Calculate the EOQ.

$2\mathrm{.}2.$ What is the number of orders per year?

$2\mathrm{.}3.$ Compute the average annual ordering costs.

$2\mathrm{.}4.$ Compute the average inventory.

$2\mathrm{.}5.$ What is the average annual carrying cost?

$2\mathrm{.}6.$ Compute the total cost.

QUESTION $3$

$(20$ Marks$)$

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills,

tools and processes. Product life cycle $($PLC$)$ has to do with the life of a product in the market with respect to

business$/$commercial costs and sales measures.

Choose a product of your choice, and provide a detailed related analyses relating to the stages of the product life cycle.

QUESTION $4$

Use the information in the table below and answer the questions that follow:

$4\mathrm{.}1.$ Draw the Activity$-$on$-$Node diagram for the above information.

$4\mathrm{.}2$ Calculate the duration of all possible paths on the network diagram.

$4\mathrm{.}3$ Identify the critical path and state its duration.QUESTION $1$

By applying Porter's methods on comparative advantage, conduct a detailed analysis of how the decision to relocate will

affect Apple's operational competitive advantage.

SECTION B

$[60$ MARKS$]$

Answer ANY THREE $(3)$ questions in this section.

QUESTION $2$

$(20$ Marks$)$

A company makes manufactures shoes. It produces $1000$ pairs of shoes per month. It buys the leather and

components from a supplier at a cost of R$20$ per component kit. The company's inventory carrying cost is estimated to

be $15\%$ of the purchasing cost per tyre and the ordering is R$50$ per component kit.

You are required to calculate:

$2\mathrm{.}1.$ Calculate the EOQ.

$2\mathrm{.}2.$ What is the number of orders per year?

$2\mathrm{.}3.$ Compute the average annual ordering costs.

$2\mathrm{.}4.$ Compute the average inventory.

$2\mathrm{.}5.$ What is the average annual carrying cost?

$2\mathrm{.}6.$ Compute the total cost.

QUESTION $3$

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills,

tools and processes. Product life cycle $($PLC$)$ has to do with the life of a product in the market with respect to

business$/$commercial costs and sales measures.

Choose a product of your choice, and provide a detailed related analyses relating to the stages of the product life cycle.

QUESTION $4$

Use the information in the table below and answer the questions that follow:

$4\mathrm{.}1.$ Draw the Activity$-$on$-$Node diagram for the above information.

$4\mathrm{.}2$ Calculate the duration of all possible paths on the network diagram.

$4\mathrm{.}3$ Identify the critical path and state its duration.SECTION B

$[60$ MARKS$]$

Answer ANY THREE $(3)$ questions in this section.

QUESTION $2$

$(20$ Marks$)$

A company makes manufactures shoes. It produces $1000$ pairs of shoes per month. It buys the leather and

components from a supplier at a cost of R$20$ per component kit. The company's inventory carrying cost is estimated to

be $15\%$ of the purchasing cost per tyre and the ordering is R$50$ per component kit.

You are required to calculate:

$2\mathrm{.}1.$ Calculate the EOQ.

$2\mathrm{.}2.$ What is the number of orders per year?

$2\mathrm{.}3.$ Compute the average annual ordering costs.

$2\mathrm{.}4.$ Compute the average inventory.

$2\mathrm{.}5.$ What is the average annual carrying cost?

$2\mathrm{.}6.$ Compute the total cost.

$(6$ marks$)$

$(4$ marks$)$

$(3$ marks$)$

$(2$ marks$)$

$(2$ marks$)$

$(3$ marks$)$

$(20$ Marks$)$

QUESTION $3$

The product life cycle goes through many phases, involves many professional disciplines, and requires many skills,

tools and processes