QUESTION 1
An ice cream company has been trading successfully for over ten years, selling direct to retail shops. However, throughout that time the ice cream company has been unable to accurately predict orders. The ice cream company has adopted (at different times) a level capacity plan, a chase demand plan and demand management with varying degrees of success. The ice cream company believes that a ‘mixed plan’ would be more beneficial to manage capacity going forward. Discuss why the ice cream company would consider the use of a ‘mixed plan’. Explain what advantages this ’mixed plan’ could bring? Your discussion should include brief details of level capacity planning, chase demand planning and demand management.
QUESTION 2
a. Explain the term “bullwhip effect” and describe its impact on a typical serial supply chain.
b. Lee, Padmanabhan et al. (1997) identified 5 main causes of the bullwhip effect: demand forecasting; lead times; batch ordering; supply shortages; price variations. Explain the impact that these causes have on the supply chain. (Do not simply list the causes, but explain them.)
QUESTION 3
Analyse and compare the most common types of facility layout and provide examples.
QUESTION 4
Discuss the disadvantages of holding inventory (do not simply list them) and explain how a lean approach can overcome
these issues.

QUESTION 5
a. How does the role of the customer differ between a manufacture or supply operation and a service or transport operation?
b. Explain the Henderson Clark model of architectural knowledge.
c. You are planning on opening an upmarket dress shop. Your analysis of the service design of the business includes consideration of the concept, package and process. What
points might you consider in this analysis?
QUESTION 6
a. Discuss and explain Porter’s four generic strategies. Provide examples from real life.
b. Four perspectives that contribute to a strategy are top-down, bottom-up, operations resources and market requirement.
Discuss how they might apply to a hotel?