Production Management (MGTC3210)

Higher Institute of Commerce and Management (HICM)

Semester: Second Semester

Level: 300

Year: 2016

Answers (200 )
REPUBLIC OF CAMEROON REPUBLIQUE DU CAMEROUN
Peace-Work-Fatherland Paix-Travail-Patrie
THE UNIVERSITY OF BAMENDA UNIVERSITE DE BAMENDA
HIGHER INSTITUTE OF COMMERCE INSTITUT SUPERIEUR DE
AND MANAGEMENT COMMERCE ET DE MANAGEMENT
Academic year: 2015- 2016 Level: 200 Course code: MGSc 210
2nd Semester Examination Date: 14th July 2016 Time allowed: 03 hrs
COURSE TITLE: PRODUCTION MANAGEMENT
Case 1: A pharmaceutical company located in Cameroon decided to develop a new drug for the
treatment of scabies. In order to facilitate its access to certain raw materials and avoid
management problems, the top management of this company decided to create a factory in the
Mentchum division (North-West Region). The manager must choose among the following
localities: Wum, Furu-Awa and Fungom. These three potential locations have the cost structures
shown in the table below.
Cost Wum . Furu-Awa
Fungom
Fixed Costs 150,000 CFAF 50,000 CFAF 200,000 CFAF
Variable Costs 30 CFAF 50 CFAF 25 CFAF
a.
The implementation of this decision, involves the acquisition of new materials. What are the
successive steps of the procurement process? (04mks)
b.
List the general factors that could eventually influence the location of this new facility. (05mks)
c.
Establish the relationship between the characteristics of this new drug and the factors to analyze in
connection with the development and design of this drug. (08mks)
d.
Represent graphically the different alternatives. (X-axis (Quantity produced in tons) and Y-axis
(Cost in CFAF)) (07mks)
e.
If this company has a demand of 13,000 units of the new medicine drug. Select which location is
to be selected and also identify the volume ranges where each location is suited? (06mks)
Case 2: Consider, in the table below, the weekly production data of a manufacturing company based in
different localities of Cameroun: Yoko, Salapoumbe, Blangoua and Fiko. Assume 40 hour-weeks and an
hourly wage of 80 CFAF. Overhead is 5.5 times weekly labour cost. Material cost as 750 CFAF per ton
a. Compute the composite productivity measures for each localities during the consider week. (12mks)
b. What do the productivity figures suggest? (03mks)
Case 3: The objective of capacity management is to match the level of operations to the level of demand.
In general, the design capacity is greater than or equal to the system capacity and system capacity is
greater than or equal to actual capacity. The design capacity for engine repair in a company is 120 trucks
per day. The effective capacity is 80 engines per day and the actual output is 64 engines per day.
a. Give two (02) examples (cases), in which the design capacity is less than the system capacity (04
mks)
b. Compute the utilization and efficiency of the operation. If the efficiency for next month is
expected to be 80%, what is the expected output? (06mks)
Case 4: The pay-off table below shows the profit (present value in million CFA Francs), a manufacturing
firm might expect in Vina Division (Adamaoua Region Cameroon) for three alternative investments
respectively located at (Mbelel, Martap, and Mbe), under different growth levels. The National Institute
Localities Output(tons) Materials( tons) Workers
Yoko 30,110 760 7
Salapoumbe 33,520 770 8
Blangoua 32,530 785 7
Fiko
34,450
780
9
of Statistic has assigned probabilities of 0.25, 0.30 and 0.45 to the possible growth levels T,, T
2
and T
3
,
respectively.
Options( Altenatives)
State of the nature
(Growth rate)
Find the preferred factory alternative using criteria of:
a. Maximax, b.Maximin c. Laplace
d. Maximum probability e. Minimax regret f. EMV (15 mks)
Mbelel Martap Mbe
T,=5.5%
18
37
13
T
2
= 6.0%
26
52
42
T
3
-5.8%
46
63
78