final - solution for ass 2 - gc 10

7/30/2019 Final - Solution for Ass 2 - GC 10

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Key solution for assignment 2

UNIT 6: Business Decision Making

ASSIGNMENT NAME: Big C

INDIVIDUAL ASSIGNMENT 2 (A1)


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Task 1 (outcome 3b)

Week Mon

(units)

Tues Weds Thurs

1 84 51 57 482 81 55 60 46

3 84 56 62 50

4 86 56 63 49

Week Day Data

Week 1 Mon 84

Tue 51

Wed 57

Thu 48

Fri 63Week 2 Mon 81

Tue 55

Wed 60

Thu 46

Fri 65

Week 3 Mon 84

Tue 56

Wed 62

Thu 50

Fri 68

Week 4 Mon 86

Tue 56

Wed 63

Thu 49Fri 69

Five day total Five day average trend

Week Day Data (unit)

Week 1 Mon 84

Tue 51

Wed 57 303 60.6

Thu 48 300 60

Fri 63 304 60.8

Week 2 Mon 81 307 61.4

Tue 55 305 61

Wed 60 307 61.4

Thu 46 310 62

Fri 65 311 62.2

0

10

20

30

40

50

60

70

80

90100

M

on

T

ue

W

ed

T

hu

Fri

Week 1

Unit


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Week 3 Mon 84 313 62.6

Tue 56 317 63.4

Wed 62 320 64

Thu 50 322 64.4

Fri 68 322 64.4

Week 4 Mon 86 323 64.6

Tue 56 322 64.4

Wed 63 323 64.6

Thu 49

Fri 69

b/

Week M T W T

1 -3.6 -12

2 19.6 -6 -1.4 -16

3 21.4 -7.4 -2 -14.4

4 21.4 -8.4 -1.6

62.4 -21.8 -8.6 -42.4

Average adj. 20.80 -7.27 -2.15 -14.13

Adj. aver. 20.80 -7.27 -2.15 -14.13

Week 5 predictions

c/

y=6.46 + (3*0.27)

Wed (W1) 60.6

Wed (W4) 64.6

Spread 4

Ave. 0.267

Week 5 Trend

M 65.400

Tue 65.427

Wed 65.454

Thu 65.481

Fri 65.508

Draw valid conclusion to support for business decision makingStudents have to draw valid conclusion from above results, eg. Trend, seasonal => eg.


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Fri

6365

68

69

Seasonal variation (unit)

-3.6

-12

2.2

19.6

-6

-1.4

-16

2.8

M

on

T

ue

W

ed

T

hu

Fri

M

on

T

ue

W

ed

T

hu

Fri

M

on

T

ue

W

ed

T

hu

Fri

Week 2 Week 3 Week 4

Time

Time series of sales

Series1


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21.4

-7.4

-2

-14.4

3.6

21.4

-8.4

-1.6

F

2.2

2.8

3.6

8.6

2.87 0.12 0.12

-0.12 -0.12

2.75

Seasona; Forecasting

20.80 86.200

-7.27 58.160

-2.15 63.304

-14.13 51.348

2.75 68.255

onday => highest demand = > inventory must be available, Thursday: lowest demand => solution?, etc. =>


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to achieve D1 students must express their ability to draw conclusion from above data.


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Task 1 (outcome 3b)

week Monday Tuesday Wednesday Thursday Friday

1 84 51 57 48 63

2 81 55 60 46 65

3 84 56 62 50 68

4 86 56 63 49 69

Moving average and additive model

Monday 84

Tuesday 51

Wednesday 57 303 60.6 -3.6

Thursday 48 300 60 -12

Friday 63 304 60.8 2.2

Monday 81 307 61.4 19.6

Tuesday 55 305 61 -6Wednesday 60 307 61.4 -1.4

Thursday 46 310 62 -16

Friday 65 311 62.2 2.8

Monday 84 313 62.6 21.4

Tuesday 56 317 63.4 -7.4

Wednesday 62 320 64 -2

Thursday 50 322 64.4 -14.4

Friday 68 322 64.4 3.6

Trend

(MT/5)

Seasonal variation

(Actual-Trend)

Question 1

Actual

Moving total of five

days' output

(A1+A2+A3+A4+A5)

week 1

week 2

week 3

84

5157

48

63

81

55 60

46

65

84

5662

50

0

10

20

30

40

5060

70

80

90

100

Graph of sales of detergent products


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Monday 86 323 64.6 21.4

Tuesday 56 322 64.4 -8.4

Wednesday 63 323 64.6 -1.6

Thursday 49

Friday 69

Monday Tuesday Wednesday Thursday Friday

week 1 -3.6 -12 2.2

week 2 19.6 -6 -1.4 -16 2.8

week 3 21.4 -7.4 -2 -14.4 3.6

week 4 21.4 -8.4 -1.6

Average 20.80 -7.27 -2.15 -14.13 2.87

Monday Tuesday Wednesday Thursday Friday

The trend rose daily rise 0.267

Monday 65.400 20.8 86.200 86

Tuesday 65.667 -7.27 58.397 58

Wednesday 65.933 -2.15 63.783 64

Thursday 66.200 -14.13 52.070 52

Friday 66.467 2.87 69.337 69

Roundedprediction

4.00

Week 5 prediction

Day TrendSeasonalvariation Prediction

-0.024

Final estimate of

average daily

variation

20.776 -7.294 -2.174 -14.154 2.846

Adjustment to

reduce total

variation to 0

-0.024 -0.024 -0.024 -0.024

20.8

week 4

Estimated

average daily

variation

-7.27 -2.15 -14.13 2.87

30

40

50

60

70

80

90

100


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Business Decisionforcast week 5

seasonal: bien dong ntn

Moving average: dien ta xu huong (trend) short-term (MA 5 days)--> xu huong ntn

0

10


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Monday Tuesday Wednesda Thursday Friday Monday Tuesday Wednesda Thursday

81 55 60 46 65 84 56 62 50

68

86

56

63

49

69

Series1


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Total

0.024

0.8

65.4

6.541

0.12

-0.12

0


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Friday Monday Tuesday Wednesda Thursday Friday Monday Tuesday Wednesda

68 86 56 63 49 69 86 58 64


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Series1

5 per. Mov. Avg. (Series1)


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Thursday Friday

52 69


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Task 2 (outcome 4a)

Students should point out some information processing tools appropriate to management level

Review existing management information systems within Big C and suggest appropriate impr

(outcome 4a, M1 & M2 consideration)

Students should explain what is MIS? And provide list of some MIS (examples should be add

ESS, DSS, OAS, TPS, etc. as well as relevant management levels (strategic, tatical and operati

Student has to review existing management information systems within Big C based on searc

Student is required to suggest appropriate improved information processing tools for operation


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: spreadsheet, email, internet, database, etc.

ved information processing tools for operational, tactical and strategic levels of Big C

ed, i.e OAS: email, Microsoft word,.) such as

onal) (M1 & M2)

ed information and field trip information

al, tactical and strategic levels of Big C


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Task 3 (outcome 4b)

Review and evaluate the existing inventory control systems in Big C. Use examples in answering the que

Based on theory (M1, M2)

Demand reorder timing = FIXED ORDER POINT

Perpetual inventory

Periodic Review System

Review & evaluate the existing inventory control systems in Big C. Use examples in answering the ques

line of products: 5 (soft, hard, FMCG, fresh, home)

ways of storage, location, ordering, outstock, how to solve damaged or out of date goods, goods as gift -inventory of electronics, fresh products (An Lac whs)?

DHL warehouse?

evaluate inventory methods of Big C: good or not, why?

BIG C Supermarket various categories of products such as food, fresh food, frozen

BIG C should base on the characteractics of these products to choose which relevant met

Student must draw valid conclusions related to real inventory of Big C & suggest suitable inventory met

ABC analysis

Pareto

Students have to use field trip information to answer this question, for example:


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stion. (outcome 4b, M1, M2 & D1 consideration)

ion.

ot consider as inventory,

food; electronic products, cosmetic, etc.

ods of inventory

ods for each line of products => D 1


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Task 4 (outcome 4c)

Prepare a spreadsheet to enable material requirements planning and calculate economic order

4.1.

Prepare a spreadsheet to calculate economic order quantities, explain what it is and how to red4.2.

Prepare a spreadsheet to enable material requirements planning

4.1.

Prepare a spreadsheet to calculate economic order quantities, explain what it is and how to red

You are now responsible for sales of detergent products, and is desperately seeking ways to im

Min order quantity 175.00 Order quantity orders ordering cost av stock

Quantity inc 25.00 175 20.6 61,714,285.7 87.5

D Sales 3,600.00 200 18.0 54,000,000.0 100

P Order cost 3,000,000.00 225 16.0 48,000,000.0 112.5

Store cost 375,000.00 250 14.4 43,200,000.0 125

C Holding 0.25 275 13.1 39,272,727.3 137.5

300 12.0 36,000,000.0 150

V Package Price 1,500,000.00 325 11.1 33,230,769.2 162.5

350 10.3 30,857,142.9 175

375 9.6 28,800,000.0 187.5

5,400,000,000.00

EOQ2 57,600.00

EOQ 240.00 nhung phai lam tron 250 vi cu 25 packages thanh 1 thu

Neu 3600

1.List detail information of components provided by each supplier

2. List detail information of components used for each product

3. List detail information of components on order

4. List detail information of components on free stock


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explain what it is EOQ, meaning of EOQ for Big C and how to reduce costs of ordering, costs of stock h

students have to express formulae to calculate EOQ without spreadsheet; explain meaning of each ter

students have to provide spreadsheet (not only identify EOQ by formalae) => D2

students have to explain how to reduce costs of ordering, costs of stock holding => D1

4.2.

Prepare a spreadsheet to enable material requirements planning

part numb product quantity in stock re-order le free stock re-order qu

A001 A 1 371 160 211 400

A002 B 5 33 40 100A003 A 5 206 60 146 150

A004 D 3 176 90 86 225

A005 E 9 172 120 52 300

A006 C 7 328 150 178 375

A007 C 2 13 10 3 25

A008 C 6 253 60 193 150

A009 E 9 284 90 194 225

A010 B 3 435 100 335 250

A011 B 2 295 110 185 275

A012 A 3 40 190 475

A013 A 7 23 120 300

A014 C 4 296 110 186 275A015 D 7 432 40 392 100

A016 D 4 416 100 316 250

A017 A 3 463 150 313 375

A018 A 1 371 160 211 400

A019 B 5 33 40 100

A020 A 5 206 60 146 150

A021 D 3 176 90 86 225

Students have to provide original spreadsheet and provide 4 spreadsheet based on 4 requirements abo

4. List detail information of components on free stock

1.List detail information of components provided by each supplier

2. List detail information of components used for each product3. List detail information of components on order


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uantities. You have to use spreadsheet facilities to do this task (this spreadsheet has to be include

ce costs of ordering, costs of stock holding

ce costs of ordering, costs of stock holding

prove profitability. Your attention has been drawn to themes of reducing costs of ordering, costs

store cost total

32,812,500.0 94,526,785.71

37,500,000.0 91,500,000.00

42,187,500.0 90,187,500.00

46,875,000.0 90,075,000.00

51,562,500.0 90,835,227.27

56,250,000.0 92,250,000.00

60,937,500.0 94,168,269.23

65,625,000.0 96,482,142.86

70,312,500.0 99,112,500.00

ng to


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olding (M3, D1 & D2 consideration)

s in spreadsheet above, meaning of EOQ => M3

on order suppliers

SP50

100 SP36SP88

SP36

SP50

SP84

SP27

SP36

SP88

SP20

SP36

475 SP36

300 SP27

SP50SP84

SP41

SP88

SP50

SP36

SP88

SP36

ve


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d in your assignment and soft copy. (outcome 4c; M3, D1 & D2 consideration)

f stock holding and improving efficiency. Basic calculations show that the average cost of placing an ord


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er is VND 3,000,000. The cost of holding stock is estimated as 25% (0.25). The annual demand for this p


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roduct is 3,500 packages with the price of VND 3, 000, 000 per package. The minimum order quantity is


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175 packages ( The sales over a four-week period has been as follows:


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Task 5 (outcome 4d)

1. Prepare a project plan for an activity and determine the critical path coi page 33

The manager would like you to establish

1.1.How to draw the network diagram.

1.2.What are the paths through the network?

1.3.What is the critical path, and what is its duration?

Draw the network diagram students have to explain steps to draw netwo

Students have to draw the network diagram and then identify:

Earliest event time, latest event time

Paths

Critical path & duration


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rk for this project


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Task 6 (outcome 4e)

Use financial tools - discounted cash flow and internal rates of return (IRR function) - to evaluate t

Cash flow () Discount factor 9% PV ()

Year 0 (4500) 1.00 -4500.00

Year 1 2000.00 0.92 1834.86

Year 2 2700.00 0.84 2272.54

Year 3 5900.00 0.77 4555.88

Year 4 2600.00 0.71 1841.91

Year 5 2700.00 0.65 1754.817760.00

The discount factor in this case is 9%. Is this a worthwhile project? Why?

Students have to evaluate the financial viability of this investment: NPV > 0 => cash inflow > cash outflo

The manager wants you to calculate the Internal Rate of Return for the organisations other newProject costing - 2300

Cost 2300.00

Returns: Year 1 900.00

Year 2 1400.00

Year 3 1050.00

3350.00

Profit 1050.00

Try to findI by using

formula

2 *

(profit)/(3*cost

) 0.30

I 2

I 1

Then calculate IRR by formalae


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Try i1 0.30 30%

Cash flow Discount factor 30% PV

Year 0 -2300.00 1.00 -2300.00

Year 1 900.00 0.77 692.31

Year 2 1400.00 0.59 828.40Year 3 1050.00 0.46 477.92

-301.37

I 1 I 2 NPV 1 NPV 2

0.30 0.15 -301.37 231.60

IRR

-0.35

try i1 0.15 15%

Cash flow Discount factor 15% PV

Year 0 -2300.00 1.00 -2300.00

Year 1 900.00 0.87 782.61

Year 2 1400.00 0.76 1058.60

Year 3 1050.00 0.66 690.39

231.60

IRR 0.215182754 21.50%

0.065182754

Ca ban coi page 387 de lam theo nhe


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e financial viability of proposed investments (outcome 4e, D1 consideration)

Year 0 (4500)

Year 1 2000

Year 2 2700

Year 3 5900

Year 4 2600

Year 5 2700

=> profit, feasibility. If students' evaluation is so heavy, really worthy => D1

roject:


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Task 7 (3c)

Prepare a business presentation using suitable software and techniques to disseminate information

Students are asked to present their report using suitable software and techniques to disseminate informati

Each student prepares a file in PPT with 10 - 12 slides to:present their assignment results

add this PPT into their assignment

criteria of PPT to be awarded outcome 3 c & M3: outline, clear content, brief information, figure + pictures + tables


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D1 & D3 Consideration

D1 Consideration

EVALUATE your work which parts are effective? What are the limitations in your work? What were

D3 Consideration

In your opinion, whether inventory control systems in Big C are suitable and effective, giving reasons for

M, D criteria awarded only when all sub criteria (M1, M2, M3, D1, D2, D3) required in each above task

each sub criteria awarded when more than 50% subcriteria achieved (i.e: M1 (task 1, task 2, task 3, task

1. Produce an assignment planner, and hand it in within one week of hand out (D2 consideratio

Partial assignment has to be submitted to Tutor based on time schedule as evidence to con

Your action plan with time schedule and activities should be discussed with tutor as more detail as possiassignment planner has to be included in you final assignment version as evidence to consider D2 criteria


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the deviations from your original plan, and how did you correct these?

your judgement.Propose recommendations based on this field to support CEO in decision making for

chieved

=> task 1, task 2 achieved M1 => M1 overall achieved)

)

ider D2 criteria.

le. Any changes of plan should be reported to tutor. This.


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controlling effectively inventory level to minimise inventory costs & satisfy customers demand

final - solution for ass 2 - gc 10

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