PGDM Mid Term Examination – December 2021

Term II – PGDM 2021-23

Course Title: Operations Management

Faculty: Dr. Anand Sasikumar
Duration: 1 hour Max. Marks: 25 marks
Instructions to Candidates:
A) Students are permitted to use Laptops and calculators in the exam
B) Students are required to upload the files in the Moodle only.
C) Students are expected to draw the diagrams pertaining to line balancing problems in the
excel files.
CLO’s
1. To impart the basic knowledge about the key concepts in operations management.
 To learn and apply different operations management tools and techniques in decision
making.
3. To understand the scope of inventory control, production scheduling and quality control in
manufacturing.

Q.1 A firm uses an exponential smoothening method with a smoothening constant α= 0.2 to forecast
demand. The forecast for the first week of January was 400 units whereas the actual demand turned out
to be 450 units.
a) Forecast the demand for the second week of January (1.5marks)
b) Assume that the actual demand during the second week of January turned out to be 460 units. Forecast
the demand up to February third week, assuming the subsequent demands as 465, 434, 420,498 and 462
units (3.5 marks). 5 marks CLOs-1,2

Q2 A group company has plants in six different locations, whose co-ordinates in kilometers are
(100,200), (200,200), (200,500), (300,500), (400,300) and (500,100). The company wants to locate a
centralized raw material warehouse from which the quantity of materials to the plants 1,2,3,4,5,6 in tones
are 1000,1200,800 and 900 respectively. Find the optimal location for the warehouse. If the cost of
transporting the goods is Rs 500 per ton, what is the cost implication of locating warehouse at the optimal
location. 5 marks CLOs-1,2
Q3 A company makes a product in three plants with capacities 100,200 and 150 units. There are four
distribution centres to which the product has to be transported. The first centre requires 80 units, the
second, third and fourth require 90,60 and 80 units. The cost of transportation among plants and centres
are shown in table below. Compute the minimum transportation cost. Company has felt there is
underutilized production capacity and have decided transport products a fifth distribution centre with a
requirement of 150.The cost of the plants to the respective distribution centre is 5,6,7 units. What is the
implication of the cost in this scenario.
5 4 6 7
8 6 5 7
7 6 8 9

5 marks CLOs-1,2

PGDM Question Paper

Q.4 A fast-food restaurant that operates in Connaught Place, New Delhi, specializes in offering food
during peak hours. The restaurant operates only for two hours in the morning and promises faster
turnaround for customer orders. The restaurant needs to design the workstations at the front end of the
kitchen to assemble all the customer orders. The back end of the kitchen provides the required food items.
A study of the tasks, their dependencies and times take on an average to assemble reveals the information
shown in the table below.

Task
Task Description Time(Seconds) Predecessor
A Set up the serve tray 20 None
B Arrange plates,cups,tissues 20 A
C Place the main item in the plate 35 B
D Fill in the side dishes 35 B
E Place a filled in water cup 20 D
Arrange cutlery items in the
F plate 20 C,E
G Verify the order 15 F
H Prepare a bill for the order 35 G
a) If during a typical peak hour operation, the restaurant is able to take 144 orders, what is the
maximum permissible cycle time for the assembly work stations? 2.5 Marks
b) If the restaurant desires to set a target of the above cycle time, what is the minimum number of
workstations. Can it support current process? If not, how many workstations are actually
required? 5 Marks
c) Compute the efficiency and balance delay for the final design? 2.5 Marks
10 marks CLO-2

PGDM Question Paper