TECHNOLOGY AND OPERATIONS MANAGEMENT Midterm Exam Section A-Application Question

Question

TECHNOLOGY AND OPERATIONS MANAGEMENT Midterm Exam Section A-Application Questions 1. The current position of a company is given. If the operations cost is reduced by 20%, how will it affect the overall contribution? Fill the table below. CURRENT REDUCE COSTS 20% $100,000 Sales Cost of goods 80,000 Gross margin 20,000 Finance costs 6,000 Subtotal Taxes at 25% 3,500 Contribution 10,500 14,000 Section B Case Study Based Questions 2. Case Study-Ryan Air Ryanair is today Europe's largest LCA. What does LCA stand for? Ryan Air has devised an operations strategy which is in line with its market position. T/F a. b. c. Turnaround time for Ryan Air at airports is kept to a d. Does the airline offer any supplement in case of delay or cancellation of e. f. g. flight? Ryan Air used the main airports to save fees. T/F Which company's business strategy did Ryan Air try to copy? Should any company directly copy another company's strategy? If No, what should be done? 3. Case study-Flextronics a. What does Flextronics provide to companies like Dell and Nokia? b. Why should Flextronics try to reduce the cost of manufacturing for its clients? C. How does Flextronics manages its clients requirements? d. Where are the sites of Flextronics? e. Why did Flextronics chose the locations?

Explanation / Answer

1.

Current New Sales 100000 100000 COGS 80000 64000 Gross Margin 20000 36000 Finance costs 6000 6000 Sub total 14000 30000 Tax 3500 7500 Contribution 10500 22500

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