Open Book Exam - Desklib

OPEN BOOK EXAM

Contents
PART B...........................................................................................................................................3
Question 1....................................................................................................................................3
a) Define in relation with law of variability that rising variability always degrade the
performance of a delivery-based system. What are the sources of demand variability
applicable to Glebe farm and how they affect their related results?............................................3
b) Explain buffering mechanisms that are available for identified demand variabilities in Glebe
farm..............................................................................................................................................3
c) Examine which capacity option (chase demand, level capacity and demand management)
that could be and which cannot be an option in relation to reconcile capacity with demand
variation observed in Glebe farm................................................................................................4
d) What sort of factors must Glebe farm owner should consider while deciding the quantity of
flavours from 5-10.......................................................................................................................5
PART C: FINANCIAL MANAGEMENT......................................................................................6
Question 2....................................................................................................................................6
a) Calculate the following ratios for the years 2020 and 2021....................................................6
b) Comments should include whether each metric is improving or deteriorating versus prior
year and against the standard terms of business for the company if applicable. You should
identify the potential causes/implications of each change...........................................................7
C) You should give an overall opinion on the financial health of the company, based on your
analysis. Is there evidence that the company may not be a ‘going concern’?.............................9
D) Give advice to financial director whether financial statement is sufficient to apply for bank
loan and also describe the limitations of financial record analysis need to be considered:.........9

PART B
Question 1.
a) Define in relation with law of variability that rising variability always degrade the
performance of a delivery-based system. What are the sources of demand variability
applicable to Glebe farm and how they affect their related results?
Law of variability: It can be explained as a tool that helps to measure to what extent
demand would vary in associated business. It defines the difference between what one
expects to take place and what actually happens. There are many reasons that are
responsible for such variations and which contribute in degrading the functioning of a
system dealing in delivery as well. Sources of demand variability are described below:
 Complexity: In Glebe farm case It can be justified as a complicated function that
takes in account whether what is being planned or predicted would give exact
results that are expected and thus what would be related measure that would help
to achieve such goals in area of ice cream and milking factory.
 Uncertainty: It can be stated as a situation that is developed through force and
existence of external factors present in market and which would cause demand to
rise or fall unexpectedly. In Glebe farm area there are many local shops available
around that might attract consumer and thus is not necessary that the demand
would rise. In case of milking, it has to manage number of visitors and in case of
ice cream sales it has to increase number of flavours.
 Volatility: It can be explained as a alternation and rapid change observed in rise of
unpredictable demand taking place in business related environment. In relation
with Glebe farm it is observed that the demand is expected to rise for certain
flavours that must be met by the business for smooth working and carrying out of
operations and for milking tour it must manage related space required for
increasing visitors.
b) Explain buffering mechanisms that are available for identified demand variabilities in Glebe
farm.
The variation in buffering recorded in delivery systems takes place because of mixtures of
inventory, capacity and time. The buffering here states the unpredictable increment or decrement