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Please note: There are 25 questions out of which Q.No.21-25 are based on the
Case Study.
Subject Code: OM01
Subject Name: Assignment Start Date:
OPERATIONS 01/07/2020
SAVE ASSIGNMENT CLOSE
MANAGEMENT Assignment End Date:
Component name: TERM 10/07/2020
END

Question 1:- Operations management is

a) the management of an organization’s productive resources or its production system.
b) A production system takes inputs and converts them into outputs.
c) The conversion process is the predominant activity of a production system.
d) All of the above

Question 2:- Identify the transforming resource out of the given options.
a) Material
b) Information
c) Facilities
d) Customer

Question 3:- Inventory & Supply Chain Management is part of ______________________ decisions taken by
Operations Management.

a) Structural
b) Infrastructural
c) Organizational
d) All of the above

Question 4:- ______________________ is make a one-at-a-time product exactly to customer specifications.

a) Batch process
b) Project process /Job Shop
c) Line process
d) Continuous process

Question 5:- In Load distance model of facility location distance is said to be Euclidean distance when_____
a) distance between points A and B is the length of the hypotenuse of a right triangle.
b) the distance travelled in the x-direction is the absolute value of the difference in x-coordinates. Adding this
result to the absolute value of the difference in the y-coordinates gives.
c) Both
d) None of the above

Question 6:- ___________________is a type of layout in which machines are grouped. Groupings are determined
by the operations needed to perform work for a set of similar items, or part families that require similar processing. /
a) U-Shaped Production Line
b) Fixed Layout
c) Cellular manufacturing
d) Product Layout

Question 7:- Suppose you load work into the three work stations where station 1 takes 6 minutes, station 2 takes 7
minutes and station 3 takes 3 minutes. What is the cycle time of this line?

a) 5.33
b) 3
c) 6
d) 7

Question 8:- Theoretical minimum workstations in a assembly line is determined by______________.

a) available time/actual output
b) available time/desired output
c) total task time/cycle time
d) cycle time/total task time

Question 9:- one best way to measure capacity while dealing with multiple products is
a) Input Measure
b) Output Measure
c) either of A & B
d) Both A & B is required

Question 10:- In a bakery the design capacity is 30 custom cakes per day. Currently the bakery is producing 28
cakes per day. On the average this bakery can make 20 custom cakes per day What is the bakery’s capacity
utilization relative to both design and effective capacity?
a) design=140% effective=90%
b) design=120% effective=93%
c) design=140% effective=93%
d) design=120% effective=90%

Question 11:- Determining the overall quantity and timing of production for the immediate future is called
a) Material Requirements Planning
b) Inventory Planning
c) Supply Chain Planning
d) Aggregate Planning

Question 12:- __________provides time scheduling information specifying when each of the materials, parts, and
components should be ordered or produced
a) Material Requirements Planning
b) Inventory Planning
c) Supply Chain Planning
d) Aggregate Planning

Question 13:- In Sequencing Jobs through One Process the Time for a group of jobs to be completed is called
/
a) Flow Time
b) Makespan
c) Tardiness
d) Slack

Question 14:- What’s the goal of TQM?

a) Do the right things right the first time, every time

b) total client satisfaction
c) continuous improvements
d) All of the above

Question 15:- Control Chart For The Sample Mean is also called
a) X Chart
b) R Chart
c) p chart
d) c chart

Question 16:- Preventive Maintenance (PM) all of these EXCEPT

a) Regularly scheduled inspections are performed.
b) activities are reactive
c) activities are performed before equipment fails.
d) usually performed during idle periods

Question 17:- _______________________warehouse sorts or splits individual orders and arranges for local
delivery and no storage is performed.
a) Consolidation
b) Break bulk
c) Processing/Postponement
d) public

Question 18:- The primary objective of using a material handling system is to ensure that
a) moving the right material, to the right place, in the right time
b) moving right amount, in sequence, in the right condition
c) to minimize production cost
d) All of the above

Question 19:- Document that provides A Complete Product Description is called

a) MRP Report
b) Stock
c) Bill of Material
d) Purchase Order

Question 20:- Which of the following is not a Behaviour of EOQ Systems

a) As demand for the inventoried item occurs, the inventory level drops
b) The amount ordered each time is not fixed or constant
c) When the ordered quantity is received, the inventory level increases
/
d) When the inventory level drops to a critical point, the order point, the ordering process is
triggered

Case Study
The Oklahoma Crude Oil Refinery buys crude oil from the Red Rock oil field located in eastern New Mexico, western
Texas, and western Oklahoma. The refinery has been guaranteed through long-term supply contracts that its needs
for crude will be supplied from this field at $18.90 per barrel as long as the refinery accepts 5,000 barrels per day
during shipping periods. The refinery uses crude oil at a rate of 1,500 barrels per day and plans to purchase 450,000
barrels from the Red Rock field next year. If the carrying cost is 20 percent of acquisition cost per unit per year and
the ordering cost is $2,500 per order:

Question 21:- What is the EOQ model to be used in this case?

a) Basic EOQ
b) Production Quantity Model(EOQ for lot)
c) Single Period Model
d) Price Break Model

Question 22:- What is the EOQ for Red Rock crude?

a) 30,160.59 barrels
b) 28,160.59 barrels
c) 29,160.59 barrels
d) 27,160.59 barrels

Question 23:- What is the Total cost of the inventory at the EOQ?
a) Rs. 77,158.92 per year
b) Rs. 79,158.92 per year
c) Rs. 77,65092 per year
d) Rs. 77,358.92 per year

Question 24:- How many days of production are supported by each order of Red Rock crude?

a) 20.11 days
b) 18.44 days
c) 19.76 days
d) 19.44 days

Question 25:- How much storage capacity is needed for the crude?

a) 22,412.4 barrels
b) 20,412.4 barrels
c) 20,812.4 barrels
d) 19,412.4 barrels