MGMT 2026 – Production Operations Management – Problem Sheet Assignment , Semester 1 - Acad Yr 2010/ 2011

The University of the West Indies

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MGMT 2026 – Problem Sheet Assignment

This Assignment is comprised of three (3) Questions – All must be

attempted.

Note:
Although this assignment is being currently assessed out of 75 marks it would be
prorated to contribute a maximum of 15 % towards your final course marks.

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MGMT 2026 – Production Operations Management – Problem Sheet Assignment , Semester 1 - Acad Yr 2010/ 2011

Question 1
(a) The Yoli clothing Group owns factories in three towns (W, Y, and Z) which
distribute to three Yoli retail dress shops in three other cities (in A, B, and
C). The table below summarizes factory availabilities, projected store
demands, and unit shipping costs.

To Dress Shop

From Factory
A B C
Factory Availability

W $4 $3 $3 35

Y $6 $7 $6 50

Z $8 $2 $5 50

Store
Demand 30 65 40 135

( i ) Derive an initial solution using:

( a ) Minimum cell cost method, [5 marks]
( b ) Vogel’s approximation method (VAM) [5 marks]

(ii) Draw a well annotated source-destination chart to illustrate this

LP problem [5 marks]

(iii) Using systematic nomenclature for the variables, write out an LP

formulation for the problem in preparation for applying a
computer software like ‘solver’ [10 marks]

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MGMT 2026 – Production Operations Management – Problem Sheet Assignment , Semester 1 - Acad Yr 2010/ 2011

Question 2
Tailwind, Inc., produces high-quality but expensive training shoes for
runners. The Tailwind shoe, which sells for $110, contains both gas-
and liquid - filled compartments to provide more stability and better
protection against knee, foot, and back injuries. Manufacturing the
shoes requires 10 separate tasks. These tasks must be grouped into
workstations in order to set up an assembly line. There are 400
minutes available for manufacturing the shoe in the plant each day.
Daily demand is 60. The information for the tasks is as follows:

TASK PERFORMANCE TIME TASK MUST FOLLOW

(MINUTES) TASK LISTED BELOW

A 1 -
B 3 A
C 2 B
D 4 B
E 1 C, D
F 3 A
G 2 F
H 5 G
I 1 E, H
J 3 I

(i) Draw a precedence diagram to illustrate the task relationships

[ 5 marks]
(ii) Compute the cycle time associated with the daily demand
[2 marks]
(iii) What is the theoretical number of work stations ? [3 marks]
(iv) Balance the line using the longest operating time rule
[10 marks]
(v) What is the efficiency of the line balance ?
[3 marks]
(vi) What is the idle time percentage ? [2 marks]

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MGMT 2026 – Production Operations Management – Problem Sheet Assignment , Semester 1 - Acad Yr 2010/ 2011

Question 3
(a) UWee Apartments is a 300-unit complex located near the University that
attracts mainly student tenants. The Manager suspects that the number of
units leased during each semester is impacted by the number of students
enrolled at the university. The university enrollment and number of
apartment units leased during the past eight semesters is as follows:

Semester University Number of

Enrollment Units
(thousands) Leased
1 7.2 291
2 6.3 228
3 6.7 252
4 7.0 265
5 6.9 270
6 6.4 240
7 7.1 288
8 6.7 246

Required:
(i) You are required to assist the Manager in forecasting the
number of apartment units that will be leased next semester
if the expected student enrollment is 6,600,
by using:
a. the tabular form of regression analysis followed by a
straight line graph after finding the intercept and the
slope [15 marks]

b. Compare the result obtained above by plotting an excel

graph and then an excel-derived trend line extrapolated.
[10 marks]

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