Operations Management Questions Latest Operations Management MC@Q Objective Que: CER ABR he lial Start Complete Exam Preparation aC a a eee ra Glens Practice fox} Mock Tests osc) Cree ee Jownload App xtc) Question 1: View this Question Online > is the process of selection of path, which each part of the product will follow. 1. Routing 2. Scheduling 3. Follow-up 4. Dispatching Answer (Detailed Solution Below) Option 1 : Routing ~coaching India’s Super Teachers for all govt. exams Under One Roof cd Sea ad Operations Management Question 1 Detailed Solution The correct answer is Routing, © Key Points Routing in Production Proce: A Detailed Look Routing is the process of determining the path that each component of a preductiill take through the production process. It's like mapping out the joumey of a part frofl'raw material to finished product, specifying: + Sequence of operations: Which processes willbe petforied on the part, and in what order. rkstations: Where each operation will take place(eg., specific machines, assembly lines). ods: How each operation will begasried out (e’g., cutting, welding, painting) Here's a breakdown of the key elements invalwee in routing: 1. Bill of Materials (BOM) The BOM lists all the components and materials required to make the product. It serves as the foundation for routing, as it identifies the individual parts that need to be routed. 2. Proc Flow Diagram (PFD): The PFD visu production process. It pro depicts the sequence of operations and the flow of materials through the jes @ clear understanding of the overall routing path 3. Routing Documentation: This document details the specific instructions for each step of the routing process, including + Operation descriptions + Work center assignments + Setup times + Processing times + Quality control pointsTeer cnc) Sela Mu CM CMe li cel) RCC eo ical] Pon ol oe) Mock Tests Ds cielnry resieuccig xtc Download App Question 2: View this Question Online > Which of the following is not an objective of operation management ? 1 — prodtict quality 2. To reduce cost of production 3. Material cost control 4. Trading and equity Answer (Detailed Solution Below) Option 4: Trading and equity Operations Management Question 2 Detailed Solution The correct answer is Trading And Equity. oO Key Points Out of the provided options, trading and equity is not an objective of operation management. Here's why: operation management, Impf@ying quality ensures customer satisfaction and brand reputation, reducing cost uuction enhances company profitability, and controlling material costs contributes to efficient resource utilization. + Trading and equity fall under the realm of financial management. which focuses on strategic financial decisions like investments, capital structure, and financial risk management. While operation management and financial management may have interconnected goals, such as achieving overall cost efficiency, their core objectives and responsibilities are distinct. + Improve quality, reduce A Ses and material cost control are all core objectives ofTherefore, trading and equity is the option that deviates from the primary goals of operation management eRe neon erin) Start Complete Exam Preparation Ree coer ® Rees oe Mock Tests Des Chee Question Bank a exer Download App Question 3: View this Question Online > The objective of the transportation problem is to: A. Maximise profit B, Minimise proift C. Neither Maximise profit nor Minimis® profit D. Maximising loses Choose the correctiansweér from the options given below: ~: 2. B and D 3. AandB 4. A. BandD 5. None of the above Answer (Detailed Solution Below) Option 1: Aand C Operations Management Question 3 DeThe correct answer is Aand C. © Key Points Transportation Problem: + The objective of the transportation problem is.not directly related to maximizing or minimizing profit. + Instead, the objective of the Hammsportation problem is to minimize the total cost or maximize the total efficiency of transportifidhgcods from a set of sources to a set of destinations. + The transportation problem is a classic optimization problem in operations research that deals with finding the most efficient way to transport goods from a set of sources (such as factories or warehouses) to a set of destinations (such as customers or distribution centers). + The objective of the transportation problem is to minimize the total cost or maximize the total efficiency of transportation. + In the transportation problem, various factors come into play, such as the supply available at each source, the demand requirements at each destination, and the cost or efficiency associated with transporting goods between different source-destination pairs. + The goal is to determine how much quantity to transport from each source to each destination while minimizing the total cost or maximizing the overall efficiency. Hence, the correct answer is A and C. roo India's #1 Learning Platform Ren oat Start Complete Exam Preparation yen Mock Tests aaa Ces old Q we ter Download App Question 4: View this Question Online > Which of the following methods of facility location is based on minimizing the total transportation cost? 1. Centroid method 2. Break-even analysis 3. Transportation méthod! aired gravity modelAnswer (Detailed Solution Below) Option 3 : Transportation method Operations Management Question 4 Detailed Solution The correct answel © key Points + The transportation method is a linear programming model that can be used to minimize the total transportation cost for a network of facilities and customers. The model works by finding the least-cost flow of goods from the facilities to the customers, subject to the facilities’ capacity constraints and the customers’ demands. + The centroid method, break-even analysis, and modified gravity model are all used for facility location problems but do not specifically minimize the total transportation cost, + The centroid method is a simple heuristic that finds the location of a facility that minimizes thE weighted average distance to a set of customers. : + Break-even analysis is used to compare the costs and benefits of different facility logation, Transportation method. options. + The modified gravity model is a more sophisticated model that takes into account the spatial distribution of customers and the cost of transportation. mv Method Objective eo Pros Transportation inetd Minimize total transportation cost - Accurate Minimize weighted average distance to Centroid method customers - Simple to use Compare costs and benefits of different Break-even analysis : options - Easy to understand Modified gravit a ~ More accurate than centroic ae eee Minimize total cost model method Se Cre CRC Um cestaPeay ose Mock Tests ei Col ea Prt c 2) Download App Question 5: View this Question Online > Comprehension: Operations management is a crucial aspect of business management that focuses on the effective planning, organizing, and controlling of the processes involved in producing goods and services. It plays vital role in achieving operational e ing resources, and delivering high- quality products and services to customers. ij One key area of operations management is capacity planning. Capacity planning involves determining the amount of resources, such as labor, equipment, and facilities, needed to meet the demand for a company's products or services. By carefully analyzing demand patterns and market trends, operations managers can enstire that the company has the right level of capacity to meet, customer requirements while avoiding overcapacity or underutilization. Another important aspect of operations management is quality management. Quality management focuses on ensuring that products and services meet or exceed customer expectations. This involves implementing quality control processes, such as statistical process control and quality assurance techniques, to monitor and improve the quality of products and services throughout the production TOCESS. | \y chain management is also a critical component of operations management. Supply chai -‘manegement involves managing the flow of materials, information, and finances across the entire supply chain, from sourcing raw materials to delivering the final product to customers. Operations managers work closely with suppliers, distributors, and logistics providers to optimize the supply chain and ensure timely delivery of goods and services. Furthermore, operations managers are responsible for inventory management. Inventory management involves maintaining an appropriate level of inventory to meet customer demand while minimizing carrying costs snd the risk of stockouts. Operations managers use various inventory control techniques, such as economic order quantity and just-in-time systems, to optimize inventory levels and balance the costs associated with carrying inventory. Overall, operations management is crucial for organizations to achieve efficiency, productivity, and customer satisfaction. It involves strategic decision-making, process optimization, and effective utilization of resources to drive operational excellence and ensure the smooth functioning of the organization's operations. By adopting best practices in operations menagement, companies can gain a competitive advantage, improve profitability, and deliver value to their customers. What is the purpose of inventory management in operations management? 1. Optimizing inventory levels 2. Eliminating stockouts3. Minimizing customers demands 4, Maximizing stock cosyts Answer (Detailed Solution Below) Option 1 : Optimizing inventory levels a Operations Management Question 6 Detailed Solution The correct answer is Optimizing inventory levels. © Key Points According to the passage, " Operations management is a crucial aspect of business management that focuses on the effective planning, organizing, and controlling of the processes involved in producing goods and services. It plays a vital role in achieving operational efficiency, optimizing resources, and delivering high-quality products and services to customers.” Inventory management is a critical aspect of operations management that involves overseeing the procurement, storage, tracking, and control of materials, components, and finished goods within an organization. It aims to ensure that the right inventory is available at the right time, in the right quantity, and at the right location to meet customer demand while minimizing costs and optimizing operational efficiency. Top Operations Management MCQ Objective Questions Tee amen Tiel) Start Complete Exam Preparation CeO aR Rec rey Pio re bic) rere oes Download App ‘Question 6 View this Question Online > In Operations management of an organization, the activities that assure the actual performance in accordance with planned performance are called:1, Planning activities 2. AMR sci 3. Controlling activities 4. Organizing activities Answer (Detailed Solution Below) Option 3 : Controlling activities Operations Management Question 6 Detailed Solution Explanation: Controlling activities: + These are a organization. + These activities assure the actual performance in accordance with planned performance is cont ectivities. ies of the organization which goes on according to the planning of the Planning activities: + These are the activities that are performed before starting the project. * Well planned activities lead to achieving the goals of the organization. Behaviour activities: + These activities are related to the behaviour of the employ of the organization a ro Se aL Rec isco Renae cen Start Complete Exam Preparationed ser rere ‘Question 7 ‘ View this Question Online > The first and foremost important feature for a project to be successful is: hould have a legal support 2. It should have adequate financing 3. It should have a market 4. It should benefit society Answer (Detailed Solution Below) Option 3: Itshould have a market Operations Management Question 7 Detailed Solution The correct answer is It should have a market. © Key Points + The concept “market” refers to the total of all demand for a particular good or servit which results from the total of all customers, i.e. actual and potential customers. _ + Market segmentation is an important concept of market, which describes as a technique for breaking up a big market into smaller groups of customers, where each segment shares e common trait. + A market is made up ofall the possible buyers who have similar needa wants and who might be willing and able to engage in an exchange to meet those needs or wants. + Itis very important to keep in mind that individuals and businesses do not purchase goods purely for selfish/ own reasons, >> + Goods are purchased/ bought because they provide benefits to their owners or address some problems, A. + Market structure describes how mers and sellers interact with each other, how businesses in the same industry compete with each other and how a market's unique characteristics influence the forces of supply and demand, + Some highlighted points with regard to Importance of Market: « Enmbonnient Generation° Gives Incentive to Manufacturers > Advancement of Economy etc. + So, the first and foremost important feature for a project to be successful is the presence of suitable market. Hence, the correct answer is It Should have a market. India’s #1 Learning Platform Start Complete Exam Preparation Reo cotta lee eced ee Doerr Cresieat og Download App PYotte Question 8 View this Question Online > ‘Customers arrive at a reception counter at an average interval rate of 10 minutes and the receptionist takes an average of 6 minutes for one customer. The average queue length is 1. 9/10 2. 9/10 3. 11/10 407/10 Answer (Detailed Solution Below) Option 2: 9/10 Operations Management Question 8 Detailed Solution The correct answer is 9/10© Key Points + Average Interval rate is 10 minutes, i.e. 1 customer in 10 minutes. + In 60 minutes = 60/ 10, i.e. 6 customers in an hour = Here, 6 becomes Lambda (A) + Service rate is 6 minutes, i.e. 6 minutes for 1 customer. = Service rate in 60 minutes = 60/ 6 i.e. 10 customers (Mu) + Formula for calculating average queue length is: x 7 B® + Here ) is lambda (Arrival Rate) and Mu become (Service rate ) * By putting this formula, we get: - 6? / 10 (10 - 6) @ 36/10 (4) . 36/40 . 0.9 ie. 9/10 = We can also write the above given formula a5: ° Lambda2/ Mu _ Hence, the correct answer is 9/ 10. ©; Additional information + We can also calculate Utilization factor with the help of lambda and Mu. + Formula to calculate Utilization factor is + Lambda / Mu + 6/10 2 0.6 + Waiting Time is the difference between Average arrival time and Spending time. oW,= 1/Mu-A,ie.W; = 1/(10-6 India’s #1 Learning Platform Cee Poot Start Complete Exam Preparation eau red De Cesare Cd ee a toDownload App Question 9 Gant View this Quastion Online > In Queuing Theory, statistical pattemn by which customers arrive over a period of time, follows = A. distribution 2. Normal distribution 3. Poisson distribution 4. Long-normal distribution Answer (Detailed Solution Below) Option 3: Poisson distribution Operations Management Question 9 Detailed Solution >» © Key Points ; . Queuing Theory: + The complete system of waiting in line is examined by queuing theory in operations research, encompassing elements like customer arrival rate, server, count, customer count, waiting room capacity, average service completion time, and queuing discipline. + Queuing discipline refers to the guidelines of the queue, such as whether it follows a first-in, first-out, prioritized, or ser\ ndom-order system. > Important Points ~ + In Queuing Theory, ststistical pattern by which customers arrive over 3 period of time follows Poisson distribution + The number of customer arrivals in a specific time period is expressed as follows P(X) = Xe where X=The total number of arrivals during the period A =the mean number of customer arrivals per unit of the time period. Thus, in Queuing Theory, statistical pattern by which customers arrive over a period of time, follows Poisson distributionSen ee Rec iar cerita SETA MM CUM ele l el) a te I (te eI Co) iid Download App ‘Question 10 View this Question Online > Atransportation problem with m origins and n destinations becomesia trans-shipment problem with 4. (m+n) sources and (m+ n) destinations 2. (m+n-1) sources and equal number of destinations 3. (m-n) sources and (m-n) destinations 4. (m+n+2) soliross and (m+n-2) destinations ~ ‘Answer (Detailed Solution Below) Option 1 : (m+n) sources and (m= n) destinations Operations Management Question 10 Detailed Solution The correct answer is (m + n) sources and (m + n) destinations. © Key Points + In case of transportation problems, the amount to be sent fram each origin, the amount to be received at each destination, and the cost per unit shipped from any origin to any destination are specified and transshipment is not considered. + Thus each point acts as a shipper only or as a receiver only. We may extend this problem to permit transshipment with the additional feature that shipments may go via any sequence of, points rather than being restricted to direct connections from one origin to one of the destinations. + Suppose that, we have m origins and n destinations. Since in a transshipment problem, any origin or destination can ship to any other origin or destination it would be;convenient toMeee ence Oa eg CCR ap Ne aE ee TTT TN NT a NTR NNT SES erer sae rr re a oan from m+1tom+n. So, A transportation problem with m origins and n destinations becomes a trans-shipment problem with (m+n) sources and (m+ n) destinations. EB ei, . Transportation problems: ¥ + A transportation problem refers to 2 class of linear programming problems that involves the selection of the most economical shipping routes for the transfer of a uniform commodity from a number of sources to a number of destinations. + In case of an unbalanced transportation problem, the total availability is not equal the to total demand, thus some of the source and/or destination constraints are satisfied as inequalities Trans-shipment problems: + In the transshipment problem, all the sources and destinations can function in any direction. + Usually, in the absence of the transshipment, the transportation cost goes higher. Hence transshipment is also very useful for the transportation cost. + Both the transportation problem and the transshipment problem are also quite widely used for planning bulk distribution. Hence, the correct answer is (m+n) sources and (m+ n) destinations. Pana nic Cee ca ete Start Complete Exam Preparation Cpu Practice enw cs Posie reenact Download App Question 11 “), “Si view this Question Online > The following statements relate to decision tree analysis. Choose the correct code for the statements being correct or incorrect. Statement I: A decision tree contains the probabilities of outcomes and the conditional monetary values attached to those outcomes. State I: In adedision tree, ‘nodes’ at the left represent actions that occur before nodes that fall f the right. 1, Both the statements | and Il are correct. Se Ea Es ses se Ak3. Statement Il is correct, but | is incorrect. 4. Statement | is correct, but Il is incorrect. Answer (Detailed Solution Below) Option 1: Both the statements | and Il are correct. Operations Management Question 11 Detailed Solution The correct answer is (1) Both the statementseandilhare correct. © Key Points + A decision tree is = &.. is frequently employed as an efficient technique of decision making. And it helps to clearly set out the problem and examine the potential repercussions of a decision, » Important Points + There are three distinct categories of nodes (chance, decision, end nodes). + Nodes at the left of a decision tree signify activities that take place before nodes that fall farther to the right. a ag Eee er peru) Start Complete Exam Preparation CCC a Son ) ally tive ae acne ites Leet a Gore Download AppQuestion 12 View this Question Online > Arrange the oper: 160 planning and control in correct sequence : @ ae “aE low up (iv) Scheduling Choose the correct answer from the code given below: 1. Gi), Gv), Gi), 2. @, Gu), Gi, Git) 3. Gv), @, (i, Gi) 4. @, Gv), il, Gi, Answer (Detailod Solution Below) Option 2: (i), (iv) (id ( Operations Management Question 12 Detailed Solution cO ° ot’ @ Key Points No? 4 Stages of Production Planning and “ko (i) Routing: identifying the produc cess from raw materials to completed goods is the first step in production planning. We chi cols, supplies, materials, and working order at this point The correct answer is (2) (i), (iv), (i (ii) Scheduling: Determining a schedule for operations is the second stage of production planning. The most effective timetable can be made using 2 variety of techniques. (iii) Dispatching: As production is started, the third step of production control begins. Thet is, materials and work orders are released and at the time the scheduling plan is put into action. (iv) Follow up: Here, you can compare the predicted run hours and quantities with the actual valuesi siuriaheteethemihaeeitahicaitliaichiiahaeiel_siireieaeriateiairieniabiainels inal Hence, Routing > Scheduling > Dispatching > Followup . This is the arrangement of the operations in production planning and control in correct sequence. ieee anu Bee! Start Complete Exam Preparation Re oa ues ee Poe Cres ieet og Jownload App Question 13 View this Question Online > Identify the correct combination of properties of point estimates form the options given below: (a) Efficiency (b) Consistency (Adequacy (d) Unbiasednéss Choos option: 1. @(b) and) 2. (6), (€) and (d) 3. (@), (and (d) 4. (@), (b) and (d) Answer (Detailed Solution Below) Option 4 : (2), (b) and (d)Operations Management Question 13 Detailed Solution The correct answer is (A), (B) and (D) only. > Important Points Properties of point ne 1) Efficiency: It is a quick method 0 testing the two unbiased estimators for a parameter so as to. which of the two is better. 2) Consistency: It defines the intimacy of the point estimator to the real value of the parameter as it(point estimator) gets large. 3) Unbiasedness: unbiasedness in point estimator is when the expected value of the point estimator is equal to the population parameter Hence, the correct answer is (A), (B) and (D) only ol eae inc Start Complete Exam Preparation RCo contr ica Eran (im) Pesce cipsree Resco researc’ Exotic Download App ‘Question 14 ‘View this Question Online > The situation of simultaneous satisfaction of row minima and column minima rule is termed as 1, Unboundedness 2. Infeasibility 3. Degeneracy 4, Post-optimality analysis Answer (Detailed Solution Below) OptionOperations Management Question 14 Detailed Solution The correct answer is Degeneracy. - important Points Row Minima and Column Minima Rule: + Row minima method involves choosing the lowest element in the row and deducting it from all the elements. + Column minima method involves;choosing the)lowest element and deducting it from all the other elements in the column « Degeneracy refers 10 thes/tuation of simultaneous satisfaction of row minima and column minima rule, ‘ * It can occur at two stages: '< initial solution and during the testing of the optimal solution. Y 6 Additional Information If the basic feasible solution of a transportation problem with m origins and n destinations has fewer than m +n ~1 positive x; (occupied cells), the problem is said to be a degenerate transportation problem, Hence, the correct answer is Degeneracy. & & eRe a eu pare) Sela mete) ni) ed ye L CBDR cocoa PLOT ies Teac (oreeea cu Poot DOr tise Download App Question 15 View this Question Online > Match List I with List II List | List ule of determining arkouian’ the order in which A pers 1. members of the jueue are selected to egin service he time of nextfaiting time in ee B. \ g Il. juninfiuenced by when| stem ie the last arrival ccurred he queueing is in escy asta ter operating for C Ill. some time with a condition fixed utilisation factor jess than one lapsed time that an individual customer D. Queue discipline | Iv. bpends in queue, efore sel luring see Choose the correct mtn Gvenbeow: -1LB “IV Kee... 3. AI, B-IV,C- II, D-1 4. A-II,B-1V,C-1,D-1 ‘Answer (Detailed Solution Below) Option 3: A- 1, B-IV,C-Ill, D-1 Operations Management Question 15 Detailed Solution Queuing theory is the study of queues and the random processes that characterize them. It deals with making mathematical sense of real-life scenarios. For example, a mob of people queuing up at a bank or the tasks queuing up on your computer's back end. Key Points List! List II * It means that evolution of the Markov process in the future depends only on the present state and does not depend on past history. + The Markov processMarkovian property Bae ee seen: the past if the present state is given. Hence, the Markov process is called the process with memoryless property. In this The time of next arrival is completely uninfluenced by when the last arrival occurred iting time in system Elapsed time that an individual customer spends in queue, both before service and during service steady state condition The steady state of a queuing system is the state where the probability of the number of customers in the systemis independent of time t. The queueing is in after operating for some time with a fixed utilization factor less than one |Queve discipline It represents the way the queue is organized (rules of inserting and removing customers to/from the queue). There are these ways: 1) FIFO (First In First Out) also called FCFS (First Come First, Serve) - orderly queue 2) LIFO (Last In First Out) also called LCFS (Last Come FirstDEVE) ~ STACK, + In short, itis the Rule of determining the order in which members of the queue are selected to begin service Therefore the correct answer is A-II, B -IV, C -Ill, D =I.