Mid Term Exam - OM - 2021

Indian Institute of Management Rohtak
PGP-Section A, B, C, D
Course-Operations Management-I (Term I)
Mid Term Exam
Duration: 2 Hours Total Marks: 30
___________________________________________________________________________
All the questions are compulsory.
Question1: On a weekday, a mess at IIM Rohtak prepares and serves meal to 400 students
using eight workers. On weekend, six workers are enough to maintain the same labor
productivity.
a) Find the labor productivity on weekday? (1 Marks)
b) How many students do not eat in mess on weekend? (1 Marks)
Question2: The mess manager at IIM Rohtak has forecasted the number of meals the mess has
to serve to the PGP participants in first four months of year 2022. Following table shows the
relevant information for successful planning and execution of activities. Assume workers are
available 8 hours per day at hourly wages of Rs.100, overhead is 1.5 times of labor cost.
Material cost is Rs.50 per pound. (4 Marks)
(a) Compute the cost of serving one meal to the participants in the respective months.
(b) If one worker can prepare 50 meals per day then calculate the labor utilization in respective
months.
Month Meals Workers Material(lbs)
January 30,000 6 450
February 33,600 7 470
March 32,200 7 460
April 35,400 8 480
Question 3: The mess manager at IIM Rohtak collected the data of number of meals served in
year 2021 (shown in the following table).
Month Meals Served
Jan 29000
Feb 28000
March 25000
April 30000
May 28000
June 32000
July 30000
Forecast the number of meals required to be served in August using the following approaches:
a. The Naïve approach by plotting the monthly data (1 Marks)
b. A three-month moving average (1 Marks)
c. A weighted average using 0.60 for recent period, 0.30 for 2 recent and 0.10 for 3rd
nd
recent period (1 Marks)

d. Exponential Smoothing with a smoothing constant equal to 0.20, assuming a January
forecast of 27000. (1 Marks)
e. Find which method is appropriate for this data (2 Marks)
Question 4: In order to prepare a meal at the mess, following task are required to be performed.
Task Task Time Immediate
(seconds) Predecessor
A 45 -
B 11 A
C 9 B
D 50 -
E 26 D
F 11 E
G 12 C
H 10 C
I 9 F,G,H
J 10 I
193
a) Develop the precedence diagram. (2 Marks)

b) Determine the minimum cycle time and then calculate the cycle time for a desired
output of 500 meals in a eight hour day. Why might a manger use a cycle time 50
seconds. (1 Marks)
c) Determine the minimum number of workstation for output of 500 meals per day.
(1 Marks)
d) Find the balanced assembly line that minimizes the number of workstations, subject to
cycle time 50 second and precedence constraints. (2 Marks)
e) Calculate the percentage idle time for the line (1 Marks)
Question 5: Layout decisions affect a wide range of facilities, supermarket, office, department
stores, and warehouses, to malls, parking lots and garages, and kitchens. Layout is also
important in the design of some products such as the interior of automobiles and the
arrangement of components inside computers and other electronics devices. Select three
different items from the list, or other similar items and explain for each what the five key
consideration for layout design? (5 Marks)
Question 6: The Owner of Genuine Subs, Inc. hopes to expand the present operations by
adding one new outlet. She has studies three locations. Each would have the same labor
material cost (food, serving containers, napkins, etc) of $1.76 per sandwich. Sandwich sells for
$8 each in all locations. Rent and equipment cost would be $5000 per month for location A,
$5,500 per month for location B, and $5,800 per month for location C.
a) Determine the volume necessary at each location to realize a monthly profit of $10,000.
(2 Marks)
b) If expected sales at A,B and C are 21000 per month, 22000 per month and 23000 per
month, respectively, which location would yields the greatest profit? (2 Marks)
Question 7: A company that handles hazardous waste to minimize the shipping cost for
shipments to a disposal center from five receiving stations it operates. Given the locations of
the receiving stations and the volumes to be shipped daily, determine the location of the
disposal center. (2 Marks)
Location of Volume Ton
Processing per day
Station (x,y)
(10, 5) 26
(4, 1) 9
(4, 7) 25
(2, 6) 30
(8, 7) 40

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Indian Institute of Management Rohtak

recent period (1 Marks)

a) Develop the precedence diagram. (2 Marks)

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