Assignment 2 - Tasks (1)

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Thompson Rivers University *

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3320

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Management

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Feb 20, 2024

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Page 1 of 3 Assignment 2 Supply Chain Management – SCMN 3320 Instructions: Due: Sunday 18 th Feb (11:59pm) – Submission through Moodle Only one group member should submit the assignment. The assignment should be submitted as one PDF File . The work should be typed, not handwritten. Maintain 3 decimal places in your answers unless otherwise stated. [The assignment can be completed in a group of maximum three members.] Student 1) Name: ____________________________________________. ID: ____________________________________________ Student 2) Name: ____________________________________________. ID: ____________________________________________ Student 3) Name: ____________________________________________. ID: ____________________________________________ Task 1 : Watch the video on the following link and, in no more than 150 words (in total), discuss: What is vertical integration? How has vertical integration helped BYD to compete with Tesla? Why achieving a higher level of vertical integration can be challenging for Tesla? https://www.youtube.com/watch?v=Ttu55nEtC6o [3 marks] Task 2 : An electronics manufacturer is seeking opportunities to reduce costs in its production process. The manufacturer is considering the induction of robots to automate the mobile screen installation process, which can reduce labour, material, and energy costs. The procurement and installation cost of robots will be $550,000 and the robots will have a useful life of only 2 years (as the technology is likely to change). It is estimated that one fulltime technician will be required to maintain and program the robots on a continuous basis. The technician will cost approximately $75,000 per year. With the robots functional, the manufacturer can free up 3 fulltime employees currently installing screens. These 3 employees are paid $60,000 per year each. There is also a material handler currently working on the screen installation process. The material handler is paid $45,000 per year and will be required even after the robots are functional. Currently the screen sealant cost per screen installation is $0.5 and the energy cost per screen installation is $0.03. With robots, these two costs will reduce by half. How many mobile phones should be produced and sold by the manufacturer over the next two years to justify the investment in robots. (Show calculations.) [Note: The problem requires an evaluation of two capacity options: Production with robots v/s without.] [4 marks]

Page 2 of 3 Task 3: A car manufacturer has identified the following as the most important customer requirements for a car door: Easy to close (7), easy to open (7), stays open on a hill (7), prevents road noise in cabin (7), does not leak in rain (10), and does not rust (8). (Values in brackets represent customer importance scores.) o ‘Easy to close’ has a strong relationship with ‘ Door weight ’ o ‘Easy to open’ has a strong relationship with ‘ Force required to open the door ’ o ‘Stays open on a hill’ has a strong relationship with ‘ Door stop resistance ’ o ‘Prevents road noise in cabin’ has a strong relationship with ‘ Thickness of insulation ’, a medium relationship with ‘ Paint thicknesses ’, and a strong relationship with ‘ Gap between door and body ’. o ‘Does not leak in rain’ has a strong relationship with ‘ Thickness of insulation ’, a medium relationship with ‘ Paint thickness ’, and a medium relationship with ‘ Gap between door and body ’ o ‘Does not rust’ has a medium relationship with ‘ Paint thickness ’, and a weak relationship with ‘G ap between door and body ’. Complete the following relationship matrix to determine the importance scores for the technical requirements. Use the relationship strength scores provided at the bottom of the table. Which technical requirement is the most important? [3 Marks] Customer requirements (importance) Technical requirements Door weight Door stop resistance Force required to open the door Thickness of insulation Paint thickness Gap between door and body Easy to close (7) easy to open (7) stays open on a hill (7) prevents road noise (7) does not leak (10) does not rust (8) Technical Requirements Importance Target Values < 10 kg > 30 Newtons < 20 Newtons > 2 cm 35 – 50 microns < 1cm Strong ⊙ 10 Medium ◯ 5 Weak ▽ 2

Page 3 of 3 Task 4: Sask Trailers assembles different types of small camping trailers demanded between January and June of each year. The demand generally peaks in April and May. Next year’s a ggregate demand forecast beyond the regular capacity is given in the following table: Month Jan Feb Mar Apr May Jun Forecasted Demand above regular capacity 495 570 735 1050 1,170 660 The company can hire temporary workers to meet the above requirements. Each temporary worker can produce 15 units per month. Hiring/training cost is approx. $1,000 per temp worker. Inventory holding cost per camping trailer per month is $50, charged to average inventory level during a month. Before January, there are no camping trailers on hand. 270 extra units are desired in inventory at the end of June. Any shortage during a period is backordered at a cost of $150 per camping trailer per month. Find the monthly and total costs of Plan A (Chase) and Plan B (Adjusted Chase). [10 Marks] Plan A – Chase: Note: Ending inventory of 270 units is desired in June, hence, in June, the output is 270 units more than the demand. Plan B – Adjusted Chase: ------- [Submit your assignments as PDF. Word files (.docx) do not allow feedback on the submission.]

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