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AOM4801 ASSIGNMENT 3 2024

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AOM4801 ASSIGNMENT 3 2024

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DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY OF AOM4801. THIS FRAMEWORK
IS ONLY INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR
ASSIGNMENT, AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING,
THUS NO STUDENT IS ENCOURAGED TO COPY THIS DOCUMENT, NOR ITS SECTIONS
FOR SUBMISSION. WE BELIEVE THE FRAMEWORK WILL BE A GOOD STARTING POINT AS
IT WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE TUTORS WHO ARE
EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS SOURCES. ANY
SIMILARITY WITH ANY EXISTING THEORY OR DISCUSION BY OTHER AUTHORS IS
EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE
HENCE MODIFICATION OF THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT
BE PROHIBITED AS IT CONTRIBUTES TO EXPANSION OF KNOWEDGE. FOR ANY
FURTHER GUIDELINE ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE
IN GENERAL, CONTACT PASSMATE TUTORIALS

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,Table of Contents
QUESTION 3.1: CAPACITY MANAGEMENT ............................................................ 3

QUESTION 3.3: MANAGING INVENTORIES IN SUPPLY CHAINS .......................... 7

QUESTION 3.4: SUPPLY CHAIN MANAGEMENT AND LOGISTICS ........................ 9

QUESTION 3.5: RESOURCE MANAGEMENT ........................................................ 12

QUESTION 3.6: OPERATIONS SCHEDULING AND SEQUENCING...................... 15

References ............................................................................................................... 18

, QUESTION 3.1: CAPACITY MANAGEMENT

3.1.1 Refer to case study 1

“Capacity can be viewed in two ways, as the maximum rate of output per unit of
time, or as units of resource availability”. With reference to the relevant theory,
as well as aeroplane capacity at LIFT airlines, demonstrate your understanding
of the above statement. (3)

Capacity refers to the inherent ability of a manufacturing or service resource, such as
a workstation or equipment, to fulfil its intended function within a designated timeframe
(David, 2017). Operations managers are responsible for making informed decisions
regarding the optimal levels of capacity to effectively meet both current short-term and
future long-term demand. The maximum rate of output per unit time is determined by
the long-term objectives in operations, as firms strive to grow and expand in order to
meet the long-term demand (Collier & Evans, 2017). On the other hand, the allocation
of resources is based on the premise of short-term capacity planning, as it is necessary
to utilise the available resources in accordance with the patterns of demand. Capacity
management refers to the ability of a hospital operation to maintain a level of output
that allows for efficient service delivery. In other terms, it pertains to the measure and
efficiency with which the business can deliver, taking into account all factors in
accordance with David (2017).

3.1.2 Refer to case study 1.

“In developing a long-range capacity plan, an organisation must make an
economic trade-off between the cost of capacity and the opportunity cost of not
having adequate capacity”.

3.1.2.1 In context of LIFT airlines, demonstrate your understanding of this
statement. {4}

The argument put forth by Hossein and Ivanov (2019) is that capacity planning is a
crucial phenomenon that should be closely aligned with an organization's strategic
direction. This necessitates the identification of the products presently offered by the
organisation, as well as its growth or survival objectives through robust expansion
initiatives or diversification into potentially risky product lines. This approach also
considers the seasonal availability of products, effectively managing the trade-off

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