Giant Gyms is a fitness chain where clients pay a monthly subscription for full access to gym facilities. The company typically experiences a huge spike in new memberships in January due to New Year’s fitness resolutions. However, to reduce this seasonal surge, Giant Gyms introduces a pricing structure that makes it cheaper to sign up in November, which is typically its slowest month.

What is this strategy called?

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XYZ Ltd is a manufacturing organisation that buys raw materials from ABC Ltd, including rare materials such as rubies and gold. XYZ Ltd accepts all orders from ABC Ltd as the materials are rare, making the relationship one-sided.

Which type of network best describes this relationship?

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Which of the following principles considers the volume of work undertaken by a given resource within an organisation?

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Which of the following are benefits of optimising the supply chain? Select ALL that apply.

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Of the following, which are examples of disintermediation? Select ALL that apply.

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Which of the following capacity planning strategies is the least conservative?

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In a bottom-up process for planning and control, who would make the strategic plan?

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The operations department of ABC Ltd has recently launched a new product. The product is manufactured within a large factory and then sent to retailers for sale. The department has a system

in place which details the components required for the product and the quantities required to fulfil customer demand. The system works online and links to other areas of the business including HR and finance.

So far, several large orders have been placed for the product from different retailers. The Chief Operations Officer (COO) has decided to programme the completion of the orders based on when the orders were placed. The benefit of this strategy is that it will give each customer a similar lead time. Thus far no buffer stock has been created as products are only created when orders are received.

Three teams are required to make the product and the product flows from team one to team two to team three, each team adding a component to the product. Unfortunately, team two are short staffed and are completing their work at a slower rate than the other two teams. This is a huge consideration for the COO as it will impact upon the capacity of the organisation.

The retailers have all signed contracts with ABC Ltd and the COO is extremely happy that they are long term contracts. Contract 1 is with retailer X and the price is set for three years. Contract 2 is with retailer Y and is a five year contract where the price will be reviewed annually in line with CPI. Contract 3 has a variable pricing mechanism based on the volume of products ordered.

What pricing mechanism is being used with supplier Y?

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Zelda is the Head Consultant at Pirate Architects Ltd, which provides services to clients in the construction industry. She has a team of 20 consultants and is considering how many projects each team member should handle.

In terms of capacity loading, which factors should Zelda consider when assigning projects? Select ALL that apply.

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When would an organisation use a VRIO analysis?

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