Question 1: Answer the following questions.
i. Analyse and identify the production and order lead times, inventory cost, switchover costs for different products, bottlenecks arising out of product testing and wastage at Synthite? (05 Marks)
ii. Examine, what operational problems/challenges Synthite faces? Investigate the root causes of these challenges with respect to inventory management. As an internal inventory or operations manager, what solutions do you propose to Synthite? (10 Marks)
iii. What do you think must be the appropriate level to carry safety stock? How frequently should one review inventory, periodically or perpetually? What actions must be taken to improve product availability while reducing safety stock?
(7.5 Marks)
Question 3: Pak Elektron Limited (PEL) has been a prominent manufacturer of consumer home appliances, power transformers, and switch gears for power companies in Pakistan. From 2007, the company had started the process of changing the information systems of the company. These systems had become outdated as Microsoft withdrew its support of Visual FoxPro, the platform on which all systems had been developed. The company decided that a Tier 1 ERP (enterprise resource planning) system with strength in manufacturing modules would be suitable. How might the ERP-induced integration of information systems lead to a strengthening of PEL’s competitive position? Identify the advantages it obtained after installing ERP as well highlight the challenges it faced during its execution.
