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Operation management - Assignment Example

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Qn 1: The best place to situate the warehouse is in location C which is located close to the 587 Great South Road in Papakura Auckland. With the increased load that is averaged in this area, there will be more business done and the supply will also be good given its proximity to the road, its proximity to a ready market and its accessibility from different avenues…
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It is situated close to the road but with a great accessibility that is leveled by a wider opening based on its position (Ruffa, 2008). There are two gates that allow for exit and entrance without inconveniencing the other. It is spacious and the loading areas are well marked out to avoid any delays or confusions during delivery or loading. The zoning schemes in this particular area are also conducive for the establishment of such a high-powered delivery and loading of the tires which imply that we can maximize the 5000 kg average load per day and become the best supplier in the area.

Qn 2: This is a Chevrolet car matrix 400 (also known as Chevrolet Nova) that was manufactured in 1964 after the major companies during this era began restructuring and changing their trends. This car was one of the best at the time with its features being unrivalled by other competitors. It was considered an executive car with four doors and a sedan style to complement its features. It has a front engine with rear-wheel drive. Its engine has a capacity 3179 cc with a 106 horsepower capacity. It has a three gear manual gear-box and a single barrel carburetor (Huntimer, 2009).

This can be contrasted with 2009 Tata Nano Car from India which can be said to be of a higher quality. The car, pictured below, has been in production since 2008 to the present with improvements being made on a daily basis to make sure it attracts as many buyers as possible outdoing other competitors in the market. It is classified as a city car with a four-door one-box body style. Its engine is a 2 cylinder SOHC petrol Bosch multipoint fuel injection with a 624 cc capacity. Its trunk is accessible only from the inside with one windscreen wiper compared to Chevrolet’s pair.

Its engine is in the rear compared to the Chevrolet’s which is at the front. It has a 38-metric horse power with two valves per cylinder overhead camshaft. It is similar to the Chevrolet in the fact that it has a rear wheel drive but differs in the fact that it has a 4-speed manual transmission. It is also more advanced in its options in the area of the engine compartment with the compressed air engine offering more avenues through which the user will save (Witzel, 2010). Further, the rear suspension has an independent coil spring that allows for safety all the time.

It is fuel efficient, making it a car that one can operate comfortably within the city. Its small body makes it easier to maneuver within the city center with the traffic jams being considered. Qn 3: To calculate EMV, given the probabilities, total cost is worked from both the fixed costs, quantities and variable cost. This approach would give the best approach to use. It is should therefore, be the approach that gives us the ­lowest total costs. Total cost = fixed costs + quantity x variable cost: Method probability Fixed cost($) quantity Variable cost($) Total cost($) Low tech 0.

2 45,000 200,000 0.55 45,000+(200,000*0.55)=155,000 Low tech 0.5 45,000 200,000 0.50 45,000+(200,000*0.50)=145,000 Low tech 0.3 45,000 200,000 0.45 45,000+(200,000*0.45)=135,000 Medium tech 0.7 65,000 200,000 0.45 65,000+(200,000*0.45)=155,000 Medium tech 0.2 65,000 200,000 0.40 65,000+(200,000*0.40)=145,000 Medium tech 0.1 65,000 200,000 0.35 65,000+(200,000*0.35)=135,000 High tech 0.9 75,000 200,000 0.40 75,000+(200,000*0.4

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