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Assignment #2 – 20% This assignment relates to the following Course Learning Requirements: CLR3: Review the pros and cons of outsourcing as a means to ensure deliverables are met. CLR4: Analyze strategies to provide the capacity levels to ensure future demand is met in the most effective manner. Recognize the elements of waiting lines and ways to manage customer expectations. CLR5: Apply principles of quality management to support materials/operations management functions. Analyze quality decisions in regards to sustainability and globalization. CLR6: Perform different ways to forecast and learn to establish a demand planning system for both budgeting and inventory planning requirements. CLR7: Inventory planning and control throughout the integrated system. This requires students to understand the concepts and planning purchasing in relation to inventory turnover, understand the need for required resources and managing cashflow to ensure payment to suppliers. Objective of this Assignment: This assignment requires students to apply the concepts from Lessons 8 – 11 in order to solve business related scenarios. Instructions: Complete all questions below and submit your assignment through Blackboard. Q1: Lesson 8 [CLR 4] (10 marks) A second hand textbook store owner wants to increase sales to students by inserting a new disk into texts for courses that require students use additional resources on the disk. This will enable students that purchase the used text to have access to the software license that is normally used up by the original text owner. The store owner has a cost for the disk but is unsure of how long it will take to insert the new disk since this process will be manual and labourious. He decides to conduct some time studies. The books are in boxes, 20 books per box. He observes the worker he has hired to record the times it takes him to replace a box of books. The owner records the time for 10 boxes of books. Since he realizes the…

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