Candidate No.

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S. K. PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES

PRODUCTION AND OPERATIONS MANAGEMENT (CC 206)
MID TERM EXAMINATION
MBA I Semester II Marks: 60
Time: 9.30 to 11.30 Date: 07/04/2018
Instructions:
1. This paper has FIVE questions.
2. Your answer should be precise and to the point.
3. Give examples and make diagrams wherever necessary.
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Question 1 Answer the following: [12]

A. Briefly explain the four process strategies.
B. Explain the various lot sizing techniques used in MRP.

OR

B. Explain the sourcing strategies in supply chain management.

Question 2 Answer the following: [12]

A. What are the various challenges in operations management?
B. How does an OM strategy change during a product’s lifecycle?

OR

A. Explain any three tools of TQM with suitable examples.

B. Compute the productivity per machine hour with the following data. Also draw your
interpretation.
Month No. of machines Working hours Units Produced
January 400 220 99,000
February 550 180 1,00,000
March 580 220 1,25,000

Question 3 Answer the following: [12]

A. Explain the various documents that are required for production in a manufacturing
firm.
B. List and explain the factors, other than globalization, that affect the location decision.
OR

A. What are the ten determinants of service quality?

B. Explain the role of ERP in operations management.
Question 4 Answer the following: [12]
 A. ABC Cleaners is considering four possible sites for its new operation. They expect to
clean 10,000 garments. The table below provides details of costing for the four sites.
Location Fixed cost Variable cost
A 35000 5
B 17000 25
C 10000 40
D 25000 20
Help ABC Cleaners decide of the most suitable site using crossover chart method.

OR

A. The TGB Bakery chain must decide whether it is less costly (higher profit) to make its
own bread in-house or to buy the breads from an outside vendor. The cost to make the
bread in-house requires a fixed monthly investment of Rs. 11,000 and a variable cost of
Rs. 10 per packet (12 dozen bread). The cost to order bread from a vendor is Rs. 22 per
packet. The demand for bread at the chain has been surveyed monthly over the past two
years and been found to follow the given distribution:

Demand (packet / month) Probability

800 0.3
900 0.5
1000 0.2

Formulate this Make vs. Buy decision as a decision tree and help TGB Bakery take a
decision.

Question 5 Answer the following: [12]

Obtain the initial solution for the following transportation problem using LCM.
Optimize the same to get the lowest transportation cost.

A B C Supply
1 6 8 10 150
2 7 11 11 175
3 4 5 12 275
Demand 200 100 300