PART A (20 Marks)

A. MCQ. Identify one letter of choice. Carry 1 mark each: - (10 m)

1. An operations manager has three general types of decisions that he/she must make. They are:
a. production decisions, management decisions and strategic decisions
b. operating decisions, management decisions and production decisions
c. strategic decisions, operating decisions and control decisions
d. production decisions, management decisions and control decisions

2. Deciding whether to develop a new product or not is an example of a(n) _______________

decision.
a. marketing
b. control
c. strategic
d. operating

3. The stage in a product’s life cycle where R & D is of the utmost importance is the _______
stage.
a. maturity
b. growth
c. introduction
d. None of the alternatives is correct.

4. Operations managers need long-range forecasts to:

a. assist them in developing next quarter’s production schedule
b. help them make strategic decisions about products, processes, and facilities
c. enable them to schedule weekly workforce requirements
d. develop work standards

5. Process planning and design uses which of the following sources of information:
a. product/service information
b. production system information
c. operations strategy
d. All of the alternatives are correct.

6. The amount of the production and distribution chain, from suppliers of components to the
delivery of finished products/services to customers that is brought under the ownership of a
company is known as:
a. horizontal integration
b. forward integration
c. vertical integration
d. backward integration

7. A form of production processing in which production departments are organized according to

the type of product/service being produced is:
a. process-focused
b. product-focused
c. customer-focused
d. None of the alternatives is correct.

8. The inventory policy that is generally used when producing a large quantity of highly
standardized products is:
a. product-focused
b. process-focused
c. produce-to-stock
d. produce-to-order

9. JIT is a system for:

a. enforced problem solving

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 b. increasing production capacity
c. reducing setup time
d. All of the alternatives are correct.

10. Fixed order period inventory systems:

a. have equal order quantities
b. are less subject to stock outs
c. usually require more safety stock than fixed order quantity systems
d. require perpetual inventory accounting

B. State True or False :- (10 m)

1. Deciding when new factories are needed or where they should be built are examples of
operating decisions.
2. Manufactured products are tangible goods while services are intangible.
3. Customer service and customer satisfaction are easy to measure in service organizations.
4. As products evolve through their life cycles, the batch size and volume remain the same.
5. Small businesses typically have a higher degree of vertical integration than large businesses.
6. Product-focused production is sometimes referred to as “continuous” production because
products/services tend to proceed through production without stopping.
7. Product-focused production has higher initial investment levels because the use of equipment is
specialized to a particular product.
8. Process-focused production typically has in-process inventories and is often referred to as
"stop-and-go" production.
9. Standard product designs are usually linked with produce-to-order finished-goods inventory
systems.
10. Product life cycles and process life cycles are independent.

PART B (80 Marks)

I. A local furniture store is examining its inventory policy and considering using an economic order
quantity (EOQ) approach for a popular table set that they have had difficulty keeping in stock.
They have the following information about the set: (20 m)
Annual demand = 5000 sets
Current order quantity = 75
Carrying cost = $2.00/unit/year
Order cost = $450
a. What is the current total annual stocking cost (TSC)?
b. What is the EOQ?
c. What is the total annual stocking cost at the EOQ?

The answer should brief and to the point.

(PAGE Limit- Each answer approximately 1- 1½ side of page only)

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II. Supply Chain Management is managing 3 flows successfully: Material,Fund & Information.
Discuss the same with respect to your organization (even if it is Service Organisation), and
comment if any improvements can be made therein. (20 m)

III.

a. The EOQ (Economic Order Qty.) formula and its components themselves give an idea:
b. How to manage INVENTORY? Explain - what to control, and what not to control in
Inventory Management? (20 m)
c. How is AGILE supply chain different from LEAN supply chain? Taking an industry example,
explain the exact difference. (10 m)

IV. Write Short/brief notes on below- (10 m)

Cycle time and Throughput. What is the relation in Little’s law? Explain the terms involved in
it.
OR

Service Process Matrix – Give examples of each type.

-X-X-

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