Refer to Table 1. Calculate:

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [1] (a)(i) Capacity utilisation = Current output / Maximum output × 100
2. [1] (a)(i) Current = 100/300 × 100 = 33.3%
3. [1] (a)(i) Most efficient = 260/300 × 100 = 86.7%
4. [3] (a)(i) Difference 53.4% or rounded 87% -33% = 54%
5. [3] (a)(i) % change 53.4/33.3 × 100 = 160.3%
6. [2] (a)(i) Other possible route: 160/300 × 100 = 53.3%. Note: Do not reward 160 on its own. No % then 2 marks
7. [1] (a)(ii) TC current = $3.20 × 100 = $320 000 per month
8. [1] (a)(ii) TC most efficient = $2.20 × 260 = $572 000
9. [2] (a)(ii) Change = $252 000 per month (000s and $ required)
10. [2] (a)(ii) % change = 78.75%
11. [1] (a)(ii) Total cost change between first six months and most efficient level = $1512 000
12. [1] (a)(ii) Deduct 1 mark for errors – no 000s and/or $. Answer of 252 or $252 or 252 000
13. [K] (b) ERP - The use of a single computer application to plan the purchase and use of resources in an organisation to improve the efficiency of operations or similar
14. [K] (b) Role of ERP in reducing unit cost
15. [K] (b) Link between ERP and lean production methods
16. [K] (b) Role of ERP in enabling higher sales and capacity utilisation
17. [K] (b) ERP is using dedicated software to integrate orders, materials, labour
18. [K] (b) Role of ERP in supply chain management leading to improved customer service and competitive advantage
19. [K] (b) ERP set up costs are high
20. [APP] (b) SU assemble and manufacture – complex requirements suited to ERP
21. [APP] (b) Delivery time important factor for customers
22. [APP] (b) Range of umbrella products makes for complex inventory decisions
23. [APP] (b) New factory is opportunity for new IT
24. [APP] (b) Reasonable use of Table 1 data
25. [AN] (b) Might enable quick decisions on marginally priced orders maintaining sales
26. [AN] (b) Reduces cost of ordering and holding inventory
27. [AN] (b) All departments can access same information improving communication issues
28. [AN] (b) Enables rapid response to change and customised pricing
29. [AN] (b) New factory and production methods ties in with new ERP opportunity
30. [AN] (b) ERP expensive therefore impact on profits
31. [AN] (b) Effectiveness relies on correct setting up and operation – training required
32. [AN] (b) Requires accurate reliable information from suppliers and customers
33. [EVAL] (b) Weighing up benefits and limitations (such as cost)
34. [EVAL] (b) Does not guarantee lower costs – the human factor might intervene
35. [EVAL] (b) Consideration of requirements for success, such as skills of operator or accuracy of information input.
36. [EVAL] (b) Is planned ERP a full complete system or a partial one?
37. [EVAL] (b) Consideration of relative importance of other factors