INDIAN INSTITUTEOFMANAGEMENTKOZHIKODE

EXECUTIVE POST GRADUATE PROGRAMMES

Operations Management End Term Examination

Answer all the questions, all questions are of equal marks Total marks: 60
Maximum Time: 2.5 hours Open book examination (Only text book is allowed)
Marks will be given based on final answer only
You can assume any value for missing data through giving proper justifications

Following the attached case “ATHLETIC KNIT” answer question number 1 to 5

(Answer all the questions, all questions are of equal marks)

1. Why is Daniel so concerned about his inventory position? Why does he need inventory at
all? What is the best way to forecast the demand to manage inventory? [10 marks]

2. What policies would you put in place in the future to help minimize inventory without
jeopardizing Athletic Knit’s reputation? [10 marks]

3. What is stopping Daniel from building everything as it is ordered by the customer? [10
marks]

4. If we must build inventory, how do we determine the ideal batch size? Would the answer
differ for peak and off-season? [10 marks]

5. What is the alternative to building inventory and how much would this option cost
Athletic Knit? [10
marks]
 INDIAN INSTITUTEOFMANAGEMENTKOZHIKODE
EXECUTIVE POST GRADUATE PROGRAMMES

6. Select one of the best possible answers for the following multiple choice questions [10
marks]

i. An assembly line consists of four stations and has a cycle time of one minute. Idle
times (per cycle) for these stations are 10 seconds, 5 seconds, 2 seconds and 13
seconds. What is the balance delay?
a. 7.5%
b. 10%
c. 12.5%
d. 25%

ii. Group technology is often related to which one of the following?

a. cellular manufacturing
b. product layout
c. combination layouts
d. self-directed teams

iii. Which of these does not relate to designing process layouts?

a. minimizing transportation costs
b. minimizing distance traveled
c. focusing on closeness ratings
d. equalizing times of workstations
iv. Which type of operation would be most closely associated with division of labor?
a. job shop
b. batch
c. assembly
d. continuous
v. The type of layout that would be used to build a submarine is:
a. fixed-position
b. products
c. process
d. aquatic
vi. Which processing system would be the least efficient choice for producing a standard
pair of shoes?
 INDIAN INSTITUTEOFMANAGEMENTKOZHIKODE
EXECUTIVE POST GRADUATE PROGRAMMES

a. Assembly
b. Batch
c. Continuous
d. Job shop
vii. Which type of processing system would most likely be used to produce smartphones?
a. Assembly
b. Continuous
c. Job shop
d. Batch

viii. Product or service profiling links key product or service requirements to:
a. Market conditions.
b. Pricing strategies.
c. Process capabilities.
d. Schedule changes.
e. Order sizes.

ix. A malfunctioning cable television converter would most likely be repaired in this type
of layout:
a. fixed position
b. hybrid
c. product
d. process
x. A job has an 80 percent learning curve. If the first unit took 100 hours to complete, the time
for the fourth unit should be closest to which time?
a) 80
b) 70
c) 65
d) 55