QUANTITATIVE METHODS FOR BUSINESS DECISION
- Demonstrate an understanding of quantitative methods, tools, techniques and models necessary for business analysis
- Apply quantitative methods/models for solving business problems
- Interpret the results of quantitative analysis through software for effective business decision making
First, just solve all problems given bellow
|Section A ( IKEA )|| Question 1
|Inventory chapter 6|
|Section B ( Woods, Inc. is a toy manufacture )||A part
|Linear programming chapter 7|
|Section C ( The Sharjah Municipality )||A part
|Project management chapter 12|
Section-A ( 10 Marks) (LO1)
The world’s largest home furnishing retailer has 355 stores in 29 countries. It ranks Number 40 on Forbes’ esteemed World’s Most Valuable Brands list and took in $39.3 Billion in sales in 2017. IKEA has certainly come a long way in its 65 years of business since its 1943 founding in Sweden. What are the best-kept secrets behind IKEA’s supply chain management processes?
This organization impresses not just its consumers with affordable, high-quality furniture, but also competitors and companies around the world – especially with its unique supply chain and inventory management techniques.
- Demonstrate the unique inventory management techniques adopted by IKEA. (5 marks)
- Compare IKEA with another best practiced Inventory Management techniques adopted by any other Business entity (5 marks)
Section –B ( 20 Marks) (LO2)
Linear programming deals with optimization problems that can be modelled with a linear objective function subject to a set of linear constraints. The objective of these problems is either to minimize resources for a fixed level of performance, or to maximize performance at a fixed level of resources. Among all the mathematical optimization techniques, linear programming is perhaps the most used and best understood by the business and industrial community.
(a ) The linear programming interactivity has the following problem:
Woods, Inc. is a toy manufacturer. Currently it manufactures wooden dolls and wooden trains. The current number of carpentry hours available per day at Woods, Inc. is 100 hours. Dolls usually take about 1 hour of carpentry whilst trains take about 2 hours. The time it takes to paint these toys is similar, i.e. 1 hour each, but there are only 80 painting hours available per day. Wooden trains are not the biggest seller and hence Woods, Inc. tries to keep the manufacturing of wooden trains to be 40 or less per day. Currently, dolls sell for £1 whilst the wooden trains sell for £2. Let the number of trains be and the number of wooden toys be.
- Given these constraints how can Woods, Inc. maximize profit? ( 5 marks)
- Identify the feasible reason applying the constraints and present the physical reason graphically. ( 5 marks)
(b) Compare with any company of your choice and apply the quantitative methods of Linear Programming in solving Business Problems.
You are required to do the followings:
- Objective functions with profit maximization/cost minimization with set of linear constraints. ( 5 marks)
- Identify the feasible reason. (5 marks)
Section –C ( 10 Marks) (LO3)
CPM (Critical Path Method) scheduling is used and accepted on many major projects to plan and coordinate work. CPM works most successfully when the entire organization, from the owner and the general contractor to the subcontractors and suppliers, are involved in the input of information. CPM scheduling is the development and use of a comprehensive work plan that graphically represents the construction logic of the project.
(a) Sharjah Foundry, UAE has long been trying to avoid the expense of installing air pollution control equipment. The Sharjah Municipality (Baldia) has recently given the foundry 16 weeks to install a complex air filter system on its main smokestack. Sharjah Foundry was warned that it will be forced to close unless the device is installed in the allotted period.They want to make sure that installation of the filtering system progresses smoothly and on time.
Activities and immediate predecessors for Ajman Foundry is given in table below.
|Activity Description||Immediate Predecesor Activity Time|
|A||Build internal components||—||3|
|B||Modify roof and floor||—||4|
|C||Construct collection stack||A||3|
|D||Pour concrete and install frame||B||5|
|E||Build high-temperature burner||C||5|
|F||Install control system||C||4|
|G||Install air pollution device||D, E||6|
|H||Inspect and test||F, G||3|
- Draw the Sharjah Foundary’s network with Expected Activity Times (with Earliest Start and Earliest Finish time).(8 marks)
- Find the critical path. (2 marks)
(b) Compare with company of your choice and apply the quantitative methods of CPM/PERT in solving
Business Problems in construction sector, or any other sector of your choice.
- Draw the network with Expected Activity Times (with Earliest Start and Earliest Finish time) (8 marks)
- Find the critical path and critical activities ( 2 marks)