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SamSuk is an international brand of small household appliances and it produces electric blenders. Currently they are reviewing which of the following two blenders is

SamSuk is an international brand of small household appliances and it produces electric blenders. Currently they are reviewing which of the following two blenders is more environmentally friendly. The details are shown in the table below:

Blender A

Part Name:

Resale Revenue per unit

Recycling Revenue per unit

Processing Cost per unit

Disposal Cost per unit

Main Motor base

$3.55

$5.25

$6.28

0

Food cup

1.35

2.97

1.23

0.63

Digital timer

0.4

0

1.62

1.5

Rotating blade

2.7

2.35

2.2

1.45

Blender B

Part Name:

Resale Revenue per unit

Recycling Revenue per unit

Processing Cost per unit

Disposal Cost per unit

Main Motor base

$4.15

$4.45

$5.12

0

Food cup

1.38

3.1

0.98

0.97

Rotating blade

2.3

2.9

2.25

1.45

a)      Calculate the revenue retrieval for both blenders A and B, and determine the more environmentally friendly blender based on the revenue retrieval value. (4 marks)

b)      Which blender design is better selection if SamSuk decided to add a digital timer to the Blender B with the digital timer revenue and cost that are the same as Blender A? (Show your calculation steps) (3 marks)

c)      The operation manager of SamSuk has identified quality control activities as below. Put them in correct four cost of quality categories and calculate the amount of each. (4 marks)

Quality control activities

Activity Cost ($)

Warranty claim

25,000

Correcting shipping errors

15,000

Preventive equipment maintenances

4,000

Disposing of scrap

9,500

Final inspection

8,000

Employee training

5,000

Processing customer returns

9,000

Inspection incoming material

6,000

d)      If you were the operation manager of SamSuk, based on the findings from part c above, comment on the findings and give your suggestions for more effective quality cost management. (4 marks)

e)      In these days, the contemporary operations are relying more and more on advanced technology in order to maintain competitive in the market.

For each of the following service industries, describe one technology application/ system and the benefit of adopting such (1 mark each, Total 5 marks).

i) Fast Food

ii) Hospital

iii)     Airport/ Airlines

iv) Education

v) Warehousing


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