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Instruction to candidates

  1. This question paper consists of TWO (2) Sections.
  2. Answer ALL questions from Section A and answer any FOUR (4) questions from Section B.
  3. For MCQ, answer in the OMR form provided. For MEQ, answer in the answer booklet.
  4. Do not bring any material into the examination room unless permission is given by the invigilator.
  5. No scripts or answer sheets are to be taken out of the Examination Hall.

Do not open this question paper until instructed.

Part A : Answer All questions.                                                                                             

1. A strategy which aims to produce a perfect product which will suit everybody is called:

 a. Marketing orientation.

 b. Production orientation.

c. Product orientation.

d. Perfection orientation.

e. Promotion orientation

2. Someone who has responsibility for marketing decisions concerning a group of products is:

a. A marketing manager

b. A brand manager.

c. A sales manager.

d. A product manager.

e. A sales man

3. In transportation model analysis the stepping-stone method is used to

a.       obtain an initial optimum solution

b.      obtain an initial feasible solution

c.       evaluate empty cells for potential solution improvements

d.      evaluate empty cells for possible degeneracy

e.      balance supply and demand

4. A transportation problem has a feasible solution when

a.       all of the improvement indexes are positive

b.      the number of filled cells is one less than the number of rows plus the number of columns

c.       all the squares are used

d.      the solution yields the lowest possible cost

e.      all demand and supply constraints are satisfied

5. When the number of shipments in a feasible solution is less than the number of rows plus the number of columns minus one

a.       the solution is optimal

b.      there is degeneracy, and an artificial allocation must be created

c.       a dummy source must be created

d.      a dummy destination must be created

e.      the closed path has a triangular shape

6. The total cost of the optimal solution to a transportation problem

a.       is calculated by multiplying the total supply (including any dummy values) by the average cost of the cells

b.      cannot be calculated from the information given

c.       can be calculated from the original non-optimal cost, by adding the savings made at each improvement

d.      is found by multiplying the amounts in each cell by the cost for that cell for each row and then subtract the products of the amounts in each cell times the cost of each cell for the columns

e.      can be calculated based only on the entries in the filled cells of the solution

7. The stepping-stone method

a.       is an alternative to using the northwest corner rules

b.      often involves tracing closed paths with a triangular shape

c.       is used to evaluate the cost effectiveness of shipping goods via transportation routes not currently in the solution

d.      is used to identify the relevant costs in a transportation problem

e.      helps determine whether a solution is feasible or not

8. In a minimization problem, a negative improvement index in a cell indicates that the

a.       solution is optimal

b.      total cost will increase if units are reallocated to that cell

c.       total cost will decrease if units are reallocated to that cell

d.      current iteration is worse than the previous one

e.      problem has no feasible solution

9. Inputs come from and outputs are transferred to the ______ of a system.

 a. Environment

 b. Sub-system

 c. Comparator

 d. Effector

e. product

10. Two systems are described as ______ if a change in the outputs of one causes a substantial change in the state of the other.

a) Highly decoupled

b) Highly coupled

c) Black boxes

d) Sub-systems

e) effecter system

11. Which of the following would not generally be a motive for a firm to hold inventories? To

a.       take advantage of quantity discounts

b.      minimize holding costs

c.       reduce stock out risks

d.      decouple production from distribution

e.      meet anticipated demand

12. Which of the following statements about ABC analysis is false?

a.       ABC analysis is based on the presumption that controlling the few most important items produces the vast majority of inventory savings.

b.      In ABC analysis, “A” Items are tightly controlled, have accurate records, and receive regular review by major decision makers.

c.       ABC analysis is based on the presumption that all items must be tightly controlled to produce important cost savings.

d.      In ABC analysis, “C” Items have minimal records, periodic review, and simple controls

e.      None of the above statements are true.

13. ABC analysis divides on-hand inventory into three classes, generally based upon

a.       unit price

b.      the number of units on hand

c.       annual demand

d.      annual dollar volume

e.      item quality

14. Among the advantages of cycle counting is that it

a.       makes the annual physical inventory more acceptable to management

b.      allows more rapid identification of errors and consequent remedial action than is possible with annual physical inventory

c.       does not require the detailed inventory records necessary when annual physical inventory is used

d.      does not require highly trained people

e.      does not need to be performed for less expensive items

15. The two most basic inventory questions answered by the typical inventory model are

a.       timing and cost of orders

b.      quantity and cost of orders

c.       timing and quantity of orders

d.      order quantity and service level

e.      ordering cost and carrying cost

16. Which of the following statements about the basic EOQ model is true?

a.       If the ordering cost were to double, the EOQ would rise.

b.      If annual demand were to double, the EOQ would increase.

c.       If the carrying cost were to increase, the EOQ would fall.

d.      If annual demand were to double, the number of orders per year would decrease.

e.      All of the above statements are true.

17. An inventory decision rule states that “when the inventory level goes down to 14 gearboxes,   100          gearboxes will be ordered.” Which of the following statements is true?

a.       100 is the reorder point, and 14 is the order quantity.

b.      The number 100 is a function of demand during lead time.

c.       14 is the safety stock, and 100 is the reorder point.

d.      14 is the reorder point, and 100 is the order quantity.

e.      None of the above.

18. The Production Order Quantity model

a.       relaxes the assumption of known and constant demand

b.      uses Ordering Cost, not Setup Cost, in its formula

c.       assumes instantaneous delivery

d.      results in larger average inventory than an equivalent EOQ model

e.      is appropriate when units are sold/used as they are produced

19. Which of the following statements regarding the Production Order Quantity model is true?

a.       It applies only to items produced in the firm’s own production departments.

b.      It relaxes the assumption that the demand rate is constant.

c.       It minimizes the total production costs.

d.      It relaxes the assumption that all the order quantity is received at one time.

e.      It minimizes inventory.

Part B (Answer 4 question)

60 marks

  1. (a) Explain in detail about the corporate strategies and functional strategies with illustration.

(6 marks)

 (b) Briefly explain the primary inputs, outputs and conversion subsystems.

(9 marks)

  •  Discuss about the overview of CRP and ERP.

(15 marks)

3. (a) What are the methods to measure and improve productivity? Explain in detail.

  • arks)
  • (a) Discuss about international buying and import purchasing procedures in terms of need, procedures and problems.

(15 marks)

  • Explain the functions of project planning, scheduling and control.

(15 marks)

  • What are the different types of production and operation system?  Give practical examples.

(15 marks)


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