Business Development: XYZ Company Assignment - Solutions and Analysis

This assignment solution addresses multiple-choice questions related to business development and operations management, focusing on topics such as waiting time calculation, the bullwhip effect, production strategies (pull systems), process types (mass production), inventory management (EOQ, safety stock), quality control (six sigma), and the impact of container ships on supply chains. The solutions provide the correct answers and concise explanations for each question, including calculations and justifications based on relevant business principles and concepts. The assignment covers topics like supply chain management, operations management, and business strategy, using real-world examples to illustrate the concepts. The document also includes references to academic sources to support the provided answers.

Question one
The answer is 10 minutes, roman (a). Since the time taken to handle one caller remains constant
but the number of call attendants is doubled, twice as many callers can be handed at a go,
resulting in a reduced waiting time by half.
Question two
The answer is (d). These ships carry more containers per trip, therefore, the bigger container
ships are likely to decrease. Since the end product which is the bigger container ships is
increased, the amount of cargo transported per trip increases thereby resulting in a decrease in
the number of large container shipper trip. This is consistent with the bullwhip effect as
illustrated (Christopher, 2019).
Question three
Option (d) is the correct answer. None of the above. Practically, Steinway is able to use a pull
system in most steps of its production process. The grand piano is the main product of Steinway
& Sons. On average, the firm takes two full years to assemble one compete for piano (Cummings
& Worley, 2013). Based on this fact, the firm could conveniently use the pull strategy in the
production of the pianos. They can only produce what is demanded in the market. The various
components used in producing a piano can only be replaced once they have fully been consumed.
Questions four
a) The process of making sushi in a bar is a mass process. This is because there is little or no
variability in the output. Almost all sushi output is similar. The process of manufacturing

sushi is not designed to suit any class of people. Instead, the procedure is universal and
cuts across bars and restaurants.
Question five
b) Yes, you can if you order large quantities each time you order. Since you are able to
estimate the average daily unit sales, the safety stock and the delivery lead time, it is
possible to calculate the reorder point. To cover for the future uncertainties, it is wise for
any business to make a slightly larger order that is projected.
Question six
Roman (b) is the answer. With proper training and application of quality assessment
strategies, the failure points in the ‘six-sigma’ eves are highly reduced. Such acts make
the process very effective and assure on the quality of the output.
Question seven
e) The shortage costs of a cartridge can’t be estimated without further information being
availed. In order to be in a position to estimate the shortage costs, there should be an
element of severe losses for the business or cancelation of an order. None of these two is
given as part of the question. With their unavailability, it might be impossible to estimate
the shortage costs.
Question eight
b) EOQ=10 The Economic order Quantity refers to the recommended quantity that a
company is expected to buy for its inventory if the cost of production, a specific rate
of demand and some other important variables are given. The main objective behind
this is cost cutting.
EOQ= ❑
√ 2∗D∗S
H =
❑
√ 2∗10∗5
1 =❑
√ 100
1 =10

Question nine
a). The coefficient of variation is the measure of dispersion in a given dataset. When data
is closer together and concentrated towards the mean, then the coefficient of variation is
minimal and the data has minimal or no outliers. The coefficient of variation is obtained
by dividing the standard deviation of a dataset by its mean value.
Question ten
a). Batching reduces the need to have more space in the bar. Batching allows for the customer to
make orders make payments within pre-agreed time periods. The payment is done online through
a system that is designed to be very secure and convenient. The agreement may be to make the
billing once a month, twice a month.
Question eleven
d). Neither the workload nor the time cycle for loan processing will be interfered with by the
changes. All the loan applications will still need to be processed and the time spent in processing
each loan application will not be affected. In fact, it will take more time to process the
applications due to the waiting time.
Question twelve
a) Andon. When andon is used in manufacturing, it makes the process readily visible to
plant managers and personnel. It also makes manufacturing easier to ensure processes are
being carried out in a manner that is productive and very efficient. It has the ability to
notify the management and workers should there be quality problems in the
manufacturing process (Corry, 2018).
Question thirteen
The correct answer is (a) with a value of 3 minutes.
Arrival (μ ¿ = 45 customers/hour. In one minute, the number of customers served equals
60
45 =1.3333 customers/minute
Service ( ʎ ¿=1 customer /minute

Expected waiting time = 1
μ−ʎ = 1
1.3333−1 =3 minutes
Question fourteen
Cpk=1.3 (b). Since the standard deviation is 0.5, the Upper limit equals 4.5.
Therefore Cpk = 6
4.5 =1.3
Question fifteen
Data with very small standard deviation has higher chances of being accurate. The correct
answer is (a). Reducing the standard deviation to 0.3 and maintaining the mean would make the
data evenly distributed. The limits will be;
Lower limit = 4 – 0.3 = 3.7 minutes
Upper limit = 4 + 0.3 = 4.3 minutes
Question sixteen
The bullwhip effect is expected more in options (b) and (c). This is because the items
being discussed are not perishable, therefore there would be a tendency by the retailers to
make orders above what the client has ordered. This is majorly driven by the desire to
keep some stock for future uncertainties. Although it a precautionary measure on the side
of retailers and wholesalers, it may lead to excess demand by the entities (Agrawal,
Sengupta, & Shanker, 2009).
Question seventeen
The correct answer is roman (a). The change would lead to an increased inventory list.
More printers would be manufactured. They all belong to the firm under discussion and

therefore they form part of their inventory. The increased production rate leads to more
items owned by the firm thereby adding onto the existing list of inventories.
Question eighteen
Yes, the change will automatically demand a more accurate sales forecast. The number of
printers produced in a month is expected to grow by at least four times the initial
quantity. Due to this fact, it is important to clearly define who the market will be for the
new items produced. If this is not we handed, the firm may suffer from extreme cases of
oversupply.
Question nineteen
The correct answer is (c). A business with more than one supplier is most likely to use
multiple business models. Every supplier has its own mode of during business. As a
result, anyone doing business with them fits into their mode to some extent for the
business transactions to be seamless.
Question twenty
The correct answer is (b). The frequency of orders received by the stations is the
difference. The major difference between push and pull systems is that for the pull
system, the main goal of the business is to attract customers towards the business and its
products while for the push strategy, businesses take the businesses to the customers
(Robertson, 2019).
Question twenty one
Outsourcing in production is less risky for the outsourcing company when the production
process requires some investment from the third party (a). When the third party has

invested into the process, high chances are that they will do the work to the best of their
ability since they risk losing their portion of investment if the job is not well done.
References
Agrawal, Sengupta, & Shanker. (2009). Impact of information sharing and lead time on bullwhip
effect and on-hand inventory. European Journal of Operational Research, 192(2), 576-
593.
Christopher, C. G. (2019). Globalization, China, and the "bullwhip effect. Retrieved from
https://www.supplychainquarterly.com/columns/scq201003monetarymatters/
Corry, P. (2018, September 12). Andon processes can help your team value fire prevention over
fire-fighting. Retrieved from https://medium.com/serious-scrum/andon-processes-can-
help-your-team-value-fire-prevention-over-fire-fighting-23fdeee504f5
Cummings, T. G., & Worley, C. G. (2013). Organization Development and Change. Cengage
Learning.
Robertson, T. (2019, March 1). Difference Between Push and Pull Marketing. Retrieved from
Chron: https://smallbusiness.chron.com/difference-between-push-pull-marketing-
31806.html