7/30/2019 Final - Solution for Ass 2 - GC 10
1/42
Key solution for assignment 2
UNIT 6: Business Decision Making
ASSIGNMENT NAME: Big C
INDIVIDUAL ASSIGNMENT 2 (A1)
7/30/2019 Final - Solution for Ass 2 - GC 10
2/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
3/42
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.
7/30/2019 Final - Solution for Ass 2 - GC 10
4/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
5/42
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. =>
7/30/2019 Final - Solution for Ass 2 - GC 10
6/42
7/30/2019 Final - Solution for Ass 2 - GC 10
7/42
to achieve D1 students must express their ability to draw conclusion from above data.
7/30/2019 Final - Solution for Ass 2 - GC 10
8/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
9/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
10/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
11/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
12/42
Total
0.024
0.8
65.4
6.541
0.12
-0.12
0
7/30/2019 Final - Solution for Ass 2 - GC 10
13/42
7/30/2019 Final - Solution for Ass 2 - GC 10
14/42
Friday Monday Tuesday Wednesda Thursday Friday Monday Tuesday Wednesda
68 86 56 63 49 69 86 58 64
7/30/2019 Final - Solution for Ass 2 - GC 10
15/42
Series1
5 per. Mov. Avg. (Series1)
7/30/2019 Final - Solution for Ass 2 - GC 10
16/42
7/30/2019 Final - Solution for Ass 2 - GC 10
17/42
Thursday Friday
52 69
7/30/2019 Final - Solution for Ass 2 - GC 10
18/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
19/42
: 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
7/30/2019 Final - Solution for Ass 2 - GC 10
20/42
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:
7/30/2019 Final - Solution for Ass 2 - GC 10
21/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
22/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
23/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
24/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
25/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
26/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
27/42
7/30/2019 Final - Solution for Ass 2 - GC 10
28/42
er is VND 3,000,000. The cost of holding stock is estimated as 25% (0.25). The annual demand for this p
7/30/2019 Final - Solution for Ass 2 - GC 10
29/42
7/30/2019 Final - Solution for Ass 2 - GC 10
30/42
roduct is 3,500 packages with the price of VND 3, 000, 000 per package. The minimum order quantity is
7/30/2019 Final - Solution for Ass 2 - GC 10
31/42
7/30/2019 Final - Solution for Ass 2 - GC 10
32/42
175 packages ( The sales over a four-week period has been as follows:
7/30/2019 Final - Solution for Ass 2 - GC 10
33/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
34/42
rk for this project
7/30/2019 Final - Solution for Ass 2 - GC 10
35/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
36/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
37/42
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:
7/30/2019 Final - Solution for Ass 2 - GC 10
38/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
39/42
7/30/2019 Final - Solution for Ass 2 - GC 10
40/42
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
7/30/2019 Final - Solution for Ass 2 - GC 10
41/42
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.
7/30/2019 Final - Solution for Ass 2 - GC 10
42/42
controlling effectively inventory level to minimise inventory costs & satisfy customers demand