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Eighth Semester B.E. Degree Examination, Dec.2017/J~~~018
),,' ,1 Operations Management :)~~;;?

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Time: 3 hrs. /I
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Max. Mar s: 1
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~, /' , ote: Answer FIVEfull questions, selecting'
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at least TWO questions from each Jf/}rt, '>
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1 a. Explain briefly witli ~ ~Jh~matic model the functionr>;,;Vl~JjInbusiness organization and
operation management/;~,: \ ~.' v? (O~Marks)
b. Defme operation managcirlle,nt. Explain the classification of production systems. (06 Marks)

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c. Defme productivity, List th,~ various factors affeoting<groductivity. Mention how it can be
improved. \) \' ~J./ (06 Marks)
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2 a. What is decision making? Explain- the frame work for decision making. (06 Marks)
b.

c.
Explain.
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Briefly explain the characteristics ~o~ operation- decision. What is Break even analysis?
(08 Marks)
Jindal steels Ltd. is planning to start a new factory for manufacturing steel utensils. It is
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considering three location options namely Bengaluru, Shimoga and Bellary. The fixed cost
at these locations have been estimated at ~ 8.15, million, ~ 7.377 million and 7.903 million
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respectively. The variable costs at the three locations are estimated at ~ 5QOper unit, ~ 580
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per unit and ~ 490 per unit respectiv~y: The factorywill have an annual production capacity
of ~0000 u~its and in the initial,y,ear it will opera~e~ J~%
efficiency. Find the best location
option, which has the lowe~tJ0~al
, cost of production. /-;:;;'J
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3 a. What is forecasting? Li~(t1~'~ieps involved in forecast~IP~ess. (04 Marks)
b. Explain the moving aver~g~:a'nd simple exponential smoo lii:hgi1t;tethodsof forecasting.
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(08 Marks)
c. The Table below giyes a' sales record of a firm. Determine\be;rs~ression line for the firm
and find the forecast"o 'sales in the month of Januar for next ~aF~ (08 Marks)
Jan Feb M?r Am Ma Jun Jul Au Se Oct Nov/D'
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90 III 99 89 87 84 104 102 95 114 103 -:-113'"

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4 a. Distinguish' be /veen design capacity and system capacity. ',::'~ (04 Marks)
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b. Explain-the various factors that influence the location of plants.

c. What is- facility layout? What factors determines the type of layout used in"'¥j9'i'ganization?
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d. Sketch and explain any two types of layouts. ~(05 Marks)
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C 5 a. Briefly explain the following with the help of a flow chart:
~o (i) Aggregate planning. (ii) Master scheduling (08 Marks)
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b. A cOglpany produces mini computers that have a seasoned demand patte~s. The available
production capacity during regular time and overtime, as well as cost data are shown in the
table be
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Period Available capacity units Demand

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RT OT SC Forecast
units
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, 'l':';> 2 50 15 1000 50~~
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3 60 18 1000 70
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4 65 20 1000 / \ 80
Initial inventory = 20 ../\\ " I

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Final inventory = 25 '" -A.
Total cost/unit (Regular ime) = ~ 100/-
Overtime cost/unit = ~ 125 '/,-

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Sub contract cost/unit = ~ l'SOi-
Carrying cost unit/period = ~ 2 ,.-;> "
Using transportation. (12 Marks)

6 a.
b.
c.
What you mean by inventory? Wha ~11;eth type of inventory?
Define ABC analysis, EOQ and ordering cycle.
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Calculate the economics lot size with uniform date of demand and instantaneous
(04 Marks)
(06 Marks)
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replacement. Give total costs and tota annual costs. (06 Marks)
d. An industry estimates that it will 'sell 12000 units of its product for the next year. The
ordering cost is ~ 100 per order and the carrying cost per unit per year is 20% of the
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purchase price per unit. The purcha price per unit is ~ 50.
Find (i) EOQ (ii) umber of orders per year (iii) Time between successive orders.
(04 Marks)
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7 a. Define MRP and with a Qlq{,~diagram, explain the various inputs to an MRP system.
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b. What is ERP? Write th b nefit and limitations ofMRP. (OS Marks)

c. A work centre oper)ltes 6 'days a week on a two shifts per day biil (8 hours per shift). It has
four machines with/the same capacity. If the machines are utilized 75% of the time at a
system efficienc<YQf90%, what is the rated output in standard hours per week? (OS Marks)
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8 a. Why has p ~~has1ng and supply chain management assumed to be importance in today's
organizations? (08 Marks)
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b. Briefly 'SPlain the following:

(i) ( endor development
(ii) , E-procurement.
(iii) j Concept of tenders.
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,~.JiV) Make or buy decision. (OS Iarks)

c. fDefme vendor rating. Explain the steps involved in the vendor rating. (04 Marks)
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