BDM Assignment #2 Guidelines SUD-10 Consulting time for Drafts: Mon-Fri (1:30pm 3:30pm) From : 14/5/12 To: 2 working

ing days before deadline. Do not write task numbers Write your assignment as a report. Your assignment should include the following in order. Assignment Cover sheet TOC I. Introduction a. Introduce the company b. The business issues you will discuss in this report (Forecasting, Inventory control (Economic Order Quantity); MRP; Project management; Investment appraisal; MIS,etc) c. Tools you will use (e.g. Spreadsheet software (Excel) ) II. Scenario Analysis Write a Business Report (this task will answer 3d) MEMORANDUM (It should be 1 separate page) To : ? (see assignment cover sheet) From : you (Sign) Subject : Sales forecast for ----Date : Dear. Xxxxxxxxxxxx Write a short memo include a short note about this report: Tell him you will forecast sales.. Tell him how many methods you will use (2; Additive & Multiplicative) Tell him that you will analysis accuracy of forecast (forecast error) for each method End of memo.. The following is part of the report after memo. 2.1. Forecasting Techniques Write introduction 2.1.1. Additive method - 5-period moving average

- adjust seasonal variation (+) - Draw graph - Analysis (upward / downward trend? Seasonal or not? 2.1.2. Multiplicative method - 5-period moving average - adjust seasonal variation (*) - Draw graph - Analysis (upward / downward trend? Seasonal or not? 2.1.3. Accuracy of Forecasting methods - it is about forecast error - Find forecast error for Add:method and Mult:method - compare 2 errors - Analysis / Comparison of 2 methods (Which method is more accurate (smaller error); why?) 2.1.4. Recommendation. - Suggest the better method NOTE: (Copy from Excel Paste special..Excel Object in Word) (Now, You finished Report, task 3b and 3d) 2.1.5. Presentation (in Power Point) - No detail tables required in PPT Include ONLY: Original Data; Forecasted data; Graphs; Forecast errors (No adjustments needed) - Insert your slides in Appendix part of report (2 slides per page) (Now, you finish task 2.2. Management Information Systems Explain current problems in Company. Then suggest Information Systems to the company o TPS to ESS o Groupware ; e.g. Yahoo group o Suggest any other information system o For better information sharing from one Dept. to another dept; between top/middle/supervisory level) o For better communication o For better efficiency o For better operations o For saving the cost

3c)

2.3. Inventory Control 2.3.1. Economic Order Quantity (EOQ) Explain briefly about types of cost (Co; Cc; TC) Currently: 300 units / order. Is it the lowest inventory cost? To check and prove calculate the following: TC300 =? Find EOQ (Qopt) = ? Then, TCQopt = ? Compare TC300 and TCEOQ ; Which cost is lower? Recommend How much should Co order? Qopt or 300? Suggest Draw Graph which shows (Cc; Co; TC for Qopt) Analyse and Recommend your suggestion Order cycle time =? Then, Analyse 2.3.2. Discounted Economic Order Quantity If Company get discount, will TC be lower than TC Qopt? TCEOQ = ? TC200 = ?; TC201 = ?; TC400 = ?; TC401 = ?; Compare these all TCs. Which one is lowest cost? Draw a Graph (4 lines; 3 lines for each discounted price; 1 for combination) *** Analyse and Recommend your suggestion as below. Two options: o If Company Do not get discount How many units should we order for lowest TC? (answer from 2.3.1) o If Company get discount How many units should we order for lowest TC? (answer from 2.3.2) (Now, You finished task 4b and 4c) 2.4. Material Requirement Planning (MRP)

Write short Introduction for MRP; What is MRP? Why do we use it? Prepare MRP for sun lounger (Level 0); and all parts (Level 1, 2) Prepare a summary table, then, ANALYSE*** ** Use correct Excel Formulae; If your table is large Appendix; table is small main report

2.5. Project Management Plan

Write a short introduction Draw a network diagram; Show all paths Calculate Duration for all possible paths; e.g. A-D-E-F: 23 days Calculate all ES, EF, LS, LF, TOTAL duration Then, identify Critical Path; (MS Visio software) ANALYSE *** all paths Draw a Gantt Chart (in Appendix; if chart is large, use Landscape paper

III.

2.4. Investment Appraisal Write A short introduction o How many projects? 3 o What methods you will use to evaluate 3 projects 2.4.1. NPV method Calculate NPV for each project (Use manual and Excel formula) Then compare NPV Recommend the project with the best NPV; the higher NPV, the better E.g. NPV 1200 $ positive; Co. get return with more than xxx% rate of return 2.4.2. IRR method Calculate IRR for each project Then compare IRR for each; The higher IRR, the better for company Then recommend the best IRR to Company Conclusion Discuss briefly about all decision making methods (forecasting, MIS, EOQ, MRP, Project Management, Investment Appraisal, etc) How these issues are important for DFC company to make decisions How can DFC get benefits: o understand market demand (forecast); save cost (EOQ); increase efficiency / plan / ontime delivery (MIS, MRP, Project Mngt); choose the right project for better profitability (Investment appraisal, IRR, NPV)

References (new page) (Use Harvard Referencing System) Appendices Appeneix-1. Name of table/graph Appeneix-2. Name of table/graph Appeneix-3. Name of table/graph (new page)

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Deadlines: 21/5 MKT 18/5 MFRD 23/5 BDM Doosan Co. Duang Quat Industrial Estate Quang Ngai 29/5 Leave Lunch Factory Finish Me Edward : : : : : : : You have to come (date may change) DUE (morning) in QN; Suggest me a good restaurant: After Lunch (2:00) 4:30 Bus, Approval from Director food/ drink / Any other interesting place?