Design a numerical example in order to demonstrate to the Productions and Operations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using the numerical example you designed above.
a. ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager of
productions and operations has three possible locations to choose from. His assistant
recommends that he use break-even analysis location technique to help determine which
location is best based on costs.
I. Design a numerical example in order to demonstrate to the Productions and
Operations Manager how break-even analysis can be used in this case.
II. Demonstrate to the OM manager how to go about choosing the best location using the
numerical example you designed above.
b. The staff training centre of a telecommunications company provides training for its
regional employees every year. The capacity of the training centre was designed to train
1,800 employees per year. Due to the complexity of the programmes, the most
employees that centre can train per year is 1,400. In the past year, 1,350 employees were
MGMT2026 Production and Operations Management
trained. Calculate:-
i. The efficiency rate of the training centre.
ii. The utilisation rate of the centre.
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