TERM END EXAMINATION: DESCRIPTIVE ANSWER SCRIPT

*Candidate to mandatorily fill all columns in this block with correct details
Seat No. 118529 Batch 2020-22
Semester THIRD Programme MBA – IB (SCM) - 0241
Specialization SUPPLY CHAIN Exam date 17/11/2021
(if any) MANAGEMENT
Exam Paper MANAGEMENT OF OPERATIONS

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 *** START TYPING YOUR ANSWERS FROM THIS PAGE ONWARDS ***
Answer 1 (A):
Given layout Data:

A B C D E F G H I
 
Dept. A - A U X A X I A X
Dept. B   - A U A X E E U
Dept. C     - A A U I X A
Dept. D       - A U O E X
Dept. E         - A A I O
Dept. F           - E U E
Dept. G             - I A
Dept. H               - U
Dept. I                 -

And the rating of the layout

Closeness rating Meaning of Rating Rating Score

A Absolutely Necessary 16
E Essential 8
I Important 4
o Ordinarily Important 2
U Unimportant 0
X Undesirable -16

Given Layout without planning:

A B C D E
F G H I  -

STEP 1: Convert the given table into rating

  A B C D E F G H I
Dept. A   16 0 -16 16 -16 4 16 -16
Dept. B   - 16 0 16 -16 8 8 0
Dept. C   - - 16 16 0 4 -16 16
Dept. D   - - - 16 0 2 8 -16
Dept. E   - - - - 16 16 4 2
Dept. F   - - - - - 8 0 8
Dept. G   - - - - - - 4 16
Dept. H   - - - - - - - -
Dept. I   - - - - - - - -

Step 2 : Convert the layout with flow matrix

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   A B C D E F G H I
Dept. A   1 2 3 4 1 2 3 4
Dept. B     1 2 3 2 1 2 3
Dept. C       1 2 3 2 1 2
Dept. D         1 4 3 2 1
Dept. E           5 4 3 2
Dept. F             1 2 3
Dept. G               1 2
Dept. H                 1
Dept. I                  

STEP 3: Multiply the Rating with Flow, to get the cumulative score of the Layout
  A B C D E F G H I
Dept. A - 16 0 -48 64 -16 8 48 -64
Dept. B - - 16 0 48 -32 8 16 0
Dept. C - - - 16 32 0 8 -16 32
Dept. D - - - - 16 0 6 16 -16
Dept. E - - - - - 80 64 12 4
Dept. F - - - - - - 8 0 24
Dept. G - - - - - - - 4 32
Dept. H - - - - - - - - -
Dept. I - - - - - - - - -

Cumulative score= 386

As we can see, E has the maximum number of absolutely essential gaps surrounding it. After
changing the layout according to the rating and preferences:
I F C D H
 - G E B A
STEP 4 :Flow Matrix
  A B C D E F G H I
Dept. A   1 3 2 2 4 3 1 5
Dept. B     2 1 1 3 2 2 4
Dept. C       1 1 1 2 2 2
Dept. D         2 2 3 1 3
Dept. E           2 1 3 3
Dept. F             1 3 1
Dept. G               4 2
Dept. H                 4

STEP 6: Modified Rating and Flow Matrix

  A B C D E F G H I

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 Dept. A - 16 0 -32 32 -64 12 16 -80
Dept. B - - 32 0 16 -48 16 16 0
Dept. C - - - 16 16 0 8 -32 32
Dept. D - - - - 32 0 6 8 -48
Dept. E - - - - - 32 16 12 6
Dept. F - - - - - - 8 0 8
Dept. G - - - - - - - 16 32
Dept. H - - - - - - - - -
Dept. I - - - - - - - - -
According to the updated layout, we have a modified rating score of 100, which results in a more
optimum score for the layout.
The Modified Layout is
I F C D H
 - G E B A

Answer 1 (B):
Given:
Price of the Yarn/ Cost per unit (C)= Rs. 240/Kg
Ordering cost (S) = Rs. 500/order
Inventory Carrying cost (Cc) = 20% of the price
Demand (D)= 1010 Kg

( 2 ×Co × D )
EOQ=√ ( )
Cc

EOQ=√ ((2 ×500 ×1010)/0.2 ×240)

EOQ= Sqrt(1010000/48)
EOQ= 145.057 Kg
EOQ= 146 Kg
The EOQ is 146 Kg

Answer 2 (A):

Job 1 2 3 4 5

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 Machine A 8 10 6 7 11
Machine B 5 10 2 3 4
Machine C 4 9 8 6 5

Sol:
Suppose, Machine G = Machine A + Machine B
Machine H = Machine B + Machine C

Job 1 2 3 4 5
Machine G 13 20 8 10 15
Machine H 9 19 10 9 9

Optimal job sequence,

Job 3 2 5 1 4
G H

So, optimal job sequence is, 3,2,5,1 and 4

Job A B C
In Out In Out In Out
3 0 6 6 8* 8 16*
2 6 16 16 26* 26 35
5 16 27 27 31* 35 40
1 27 35 35 40* 40 44*
4 35 42 42 45 45 51

As a result, the total time required to complete all jobs is 51 hours.

Answer 2 (B):
Heading Week Number

1  2  3  4 5 6

Gross   100  200  150  100 200 200

Requirements 

Scheduled   0 0 120  100 150 0

Receipts 

On Hand  75 75 0 0 0 0 0

Allocated   25 25 0 0 0 0 0
Inventory 

Nett   50  200  30  0 50 200

Requirements 

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 50 200 30 0 50 200
Planned Order Receipts

Planned Order Release 50 200 30 0 50 200

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