De La Salle University
Taft Avenue, Manila
Operations Management Plan for
Mayren Loading Station
Presented to the Faculty of the
Decision Sciences and Innovation Department RVR - College of Business
In partial fulfillment of the requirements in
OPERATIONS AND TECHNOLOGICAL MANAGEMENT (DSIOPMA)
Submitted by (Group 5):
Braza, Joyce Gwyneth T.
Ninobla, Ayisha Mae G.
De Vera, Jairus Timothy G.
Pasaoa, Keziah Jemimah S.
Diaz, Romeo Jezreel V.
Soliven, Fatima Cheska D.
Submitted to:
Mr. JAYME C. IGNACIO
Class Instructor
3rd Term, SY 2022-2023
July 13, 2023
Introduction / Background of the Company
A. Brief Company History
B. Address and Branches
C. Line of Business and Product Lines
Problem Definition
Development of Model and Data Gathering
Data Gathering
Problem Models
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Introduction / Background of the Company
A. Brief Company History
Mayren Loading Station, established in 2000, is a mobile phone shop in San
Pablo City, Laguna. The owner initially started as a sales agent, buying and selling SIM
cards. At that time, the markup on SIM cards was high, with a selling price of 1,000 and
a cost of 100. Initially, the owner sold to various outlets in Southern Tagalog, where
many placed volume orders and sold them for 800, resulting in a profit of 200 per piece.
Recognizing the potential of this high markup, the owner decided to open their own
store, offering a wide range of network e-load accessories and cellphones. Additionally,
the business expanded to become a distributor of load wallets in Laguna, strategically
located in San Pablo City and Los Baños. This early access to these areas allowed the
business to survive and thrive due to its established client base.
B. Address and Branches
1. Main Branch - Jose Rizal Avenue, San Pablo City, Laguna
2. 2nd Branch - Jose Rizal Avenue, San Pablo City, Laguna
3. Century Branch - M. Basa Street, Barangay IV-C, San Pablo City, Laguna
4. Mall Branch - San Pablo City Shopping Mall, San Pablo City, Laguna
5. Los Baños Branch - Barangay Batong Malake, Los Baños, Laguna
C. Line of Business and Product Lines
Mayren Loading Station is a telecommunications company which provides
various products and services. The said products are listed below:
Load Cards
Type
Sim Cards
Price
Type
Price
Globe 100
100
GOMO Sim
399
Globe 300
290
Smart Rocket Sim
749
Globe 500
490
Globe Retailers
70
Smart 100
100
Smart Retailer Sim
250
Smart 300
290
DITO Sim
50
Smart 500
490
TNT Mega Tri-cut Sim
40
TM 50
50
Smart Upgrade Sim
15
TM 100
100
Smart and Broadband
50
TM 300
295
TM Sim
45
Operations Management Plan for “Mayren Loading Station”
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TNT 100
100
TNT 300
295
Globe Sim LTE Tri-Cut
50
Operations Management Plan for “Mayren Loading Station”
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Problem Definition
An interview with the owner of the company was conducted to identify key issues
related to the operations of Mayren Loading Station. One of which was mentioned
include the decline in sales due to the COVID-19 pandemic crisis that continues to
prevail throughout December 2019 until recently.
Mayren Loading Station caters all items of Network E-Load and became the
distributor of load wallet in Laguna as well as in strategic locations in San Pablo and Los
Baños. The business became leading in San Pablo City, Laguna where its service
includes cellphone repairs, all kinds of load cell cards, cell and computer accessories,
gaming cards, sim cards, and Wi-Fi.
However, at the height of the health crisis, almost all individuals residing in San
Pablo City and Los Baños, Laguna, as well as the individuals of its neighboring cities,
were mandated to stay at home in compliance with the country’s lockdown measures for
a lengthy period. Given the circumstances, the company currently experiences a decline
in sales. With this decline, their costs exceed their revenues and a continuous loss may
force them to reduce personnel. The sales of the company declined due to these
circumstances.
Another problem that the company faces is the decision whether to cut its
employees because their salaries cost more than the company’s profits or to increase
the prices of their products. If the company cuts its staff, it would need to lessen the
operation hours that would likely reduce its profits more because of loss of customers.
Meanwhile, the same circumstance will happen if the company decides to increase the
prices of its products due to being less competitive. With all these said, this study will
revolve on providing a solution to the said problems with the use of the topics learned in
the course for Operations and Technological Management.
Operations Management Plan for “Mayren Loading Station”
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Development of Model and Data Gathering
The problems encountered by the business are discussed here with the aim of
finding optimal solutions based on the topics covered in the course Operations and
Technological Management (DSIOPMA). To ensure a systematic presentation of the
data, each problem is enumerated individually along with its corresponding related
problems.
Data Gathering
The paper uses the data provided by the owner. Relating to this, a member of the
group has a personal connection with the owner. With this, data are certified to be
accurate to the best of the owner's and the group’s abilities.
Problem Models
A. A-B-C Designations
Due to a decline in sales, the company studies the proper designation of its items
to determine the percentage each item takes up in its monthly sales. Moreover, this type
of counting and designation will help prevent thefts.
A-B-C Designation Table will be used as a model.
B. Minimizing Inventory Costs
Due to the decline in sales, the business owner is facing a difficult decision
whether to cut staff or raise prices because the employee salary costs have exceeded
the monthly profit. Cutting staff would mean that the business would have to reduce its
hours of operation, likely leading to a loss of customers. On the other hand, raising
prices would mean the industry would be less competitive, which could also lead to
losing customers. Thus, the business owner needs to find a way to reduce his costs
without compromising the competitive status of the business; therefore, the decision
was to outsource revenue from a different owner company to sustain personnel
salaries. However, the decision is not a good one because it is a short-term solution that
needs to address the underlying problems of the business.
𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑜𝑠𝑡𝑠 = 𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑟𝑟𝑦𝑖𝑛𝑔 𝐶𝑜𝑠𝑡𝑠 + 𝐴𝑛𝑛𝑢𝑎𝑙 𝑂𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡𝑠
𝑄
𝐷
𝑇𝐶 = 2 𝐻 + 𝑄 𝑆
The solution to this problem aims to lower inventory costs so that the company
would be able to sustain personnel salaries.
Operations Management Plan for “Mayren Loading Station”
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C. Break-even point
The decline in sales imposes a threat of personnel retrenchment; with this, a
profit of 300,000 per month should be realized. The yield needed to be realized is based
on monthly salaries. How much of the product should be sold to reach the said profit?
Model:
𝑄𝐵𝐸𝑃 = 𝐹𝐶/(𝑅 − 𝑣)
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