Reference no: EM133140866

Part - A

Question 1. In this question each student is required to conduct a market survey and provide the following analysis. Critically evaluate any two products (name of the product, specifications of the product, manufacturers details etc) of electronics goods or automobile goods and justify which brand product is the market leader in Oman and discuss what are the marketing strategies required to make a good decision to be a market leader. (Using your analysis with 400-500 words approx.).

Each student should visit the local marketplace places, select any product (electronic / automobile/ any other consumer products) available in the Oman market, study the product in detail and provide valid information.

Question 2. Break-even analysis helps a manager to clearly understand the nature of relevant costs and their importance in managerial decision making, resulting in that the manager can take more soundly decisions and is more confident about their eventual outcome'. Justify how it is relevant to any manufacturing industry, supporting your answer with an example. (Using your sentences with 400-500 words approx.)

NOTE:
Section - The evaluation will be done based on the technical information, language skills and clarity in the contents with subje ct knowledge are essential. Students are advised to proof read the entire report once completed before uploading it, and the report should be free from language errors and the similaruty shoul; not exceed 15% safe assign. CCE/NU Harvard reference sheet should be submitted along with the report.

Part - B

Question 3. ABC steel plant industry plans to manufacture a product. The product needs a special component. The industry has reviewed that the special component can be produced in the plant or bought in. An investment is required to start the production of the component for which two mutually exclusive projects A and B representing different production processes are available. The alternative option is to buy in from another company representing project C. The details of projects A and B are given in Table 3:

(i) Using the information from table 3 and Discount Cash Flow criteria, calculate Pay Back Period (PBP), Account Rate of Return (ARR), Net Present Value (NPV) and
Internal Rate Return (IRR) for project A & Project B if the industry plans to sale the unit cost of RO 350.
[Marking Rubrics: Back Period (PBP) for the project A & project B - 4 Marks, Account Rate of Return (ARR) for project A & project B - 4 Marks, Net Present Value (NPV) for the project A & project B - 8 Marks, and Internal Rate Return (IRR) for the project A & project B - 12 Marks.]
(ii) Using the annual cost data from table 3, determine which project incurs less cost if the industry considers producing 7, 500 units per year.
(iii) Using the table 3, determine the Break-Even quantity and margin of safety (units and value) If the company sells 8,000 units of new product per year at a price of RO 50 per unit.

Table 3

Description	Project-A	Project-B
Capital (RO)	366,170	469,550
Life (years)	15	15
Sales Quantity (units per year)	10,000	12,000
Salaries per year (RO)	45,000	50,000
Other fixed costs per year (RO)	40,000	85,000
Wages per year (RO)	70,000	80,000
Cost of materials per year (RO)	214,740	299,020
Other variable costs per year (RO)	35,000	40,000
Scrap value at the end of the year (RO)	31,200	43,090
Cost of capital (%)	13	13

Q4: M/S XYZ Company Manufactures Sports bikes and supplies them to the local market. A local sub-contracting manufacturer supplies the wheels to the M/S XYZ Company through a purchase contract. The sub-contracting company initially purchases aluminium billets as raw material and manufactures wheels by forming each billet into wheel rims. Both the rims (front and rear) are assembled with spokes, front and rear hubs. Front wheels comprise a front rim, 24 spokes and a front hub. Rear wheels comprise a rear rim, 24 spokes and a rear hub.

(i) Draw the Bill of Material (BOM) tree for the front and rear wheels.

(ii) Referring to table 4(i) and 4(ii), complete the Material Requirements Planning (MRP) and determine when to Purchase Orders placed for the spokes.

Table 4 (i)

Week	12	13	14	15	16	17
Demand for the bikes	80	70	90	120	100	85
Demand of Front Rim	50	-	40	30	-	125
The demand of Rear Rim	-	70	60	-	80	-

Part/Component Lead Time Stock on Hand Batch Size Safety Stock

Table 4 (ii)

Part/Component	Lead Time	Stock on Hand	Batch Size	Safety Stock
Bike	1	200	100	0
Front wheel	1	100	120	100
Rear wheel	1	80	150	125
Front Rim	2	60	150	100
Rear Rim	2	190	100	100
Front Hub	1	100	150	50
Rear Hub	1	140	100	50
Spokes	1	8200	3,000	1,100

Attachment:- Break-even analysis.rar