SIKKIM MANIPAL UNIVERSITY - DDE

Master of Business Administration – MBA Semester III

MBA205 – Operation Research- 4 Credits
(Book Id – B2068)
Model Question Paper
Duration: 3 hours Total marks: 70

Section A
Multiple Choice Questions (MCQ)
[Please answer ALL the following questions, each question carries TWO marks] (2*10=20 marks)
1. i) True or False:
I. Operations Research is the art of giving bad answers to problems which otherwise have
worse answers.
II. Operations research is the sophisticated name given to a multi-disciplinary problem
oriented approach to the top management problems. It involves the application of non-
scientific methods in situations where executives require description, prediction and
comparison for the purpose of making decisions.
a. I- False, II- True
b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
ii) True or False:
I. A corporate-level strategy helps in achieving objectives by analysing all business
opportunities available to an organisation.
II. A corporate-level strategy is futuristic, innovative and pervasive in nature, and includes
major decisions, such as mergers, takeovers, liquidations and diversification.
a. I- False, II- True
b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
iii) True or False:
I. Forecasting involves analysis of past only
II. Forecasting uses scientific and mathematical techniques.

a. I- False, II- True

b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
iv) True or False:
I. According to Kotler “A service is any act or performance that one party can offer to
another that is essentially intangible and does not result in ownership of anything. Its
production may or may not be linked to a physical product.”
II. Intangibility refers to the receptive characteristic of products.
a. I- False, II- True
b. I- False, II- False
 c. I- True, II- False
d. I- True, II- True
v) True or False:
I. In transportation problem A feasible solution to the m-origin and n-destination problem is
said to be basic if the number of positive allocations are m+n-1.
II. Assignment problem is a special type of transportation problem in which a number of jobs
are assigned to a number of persons in such a way that the total transportation cost is
minimised.
a. I- False, II- True
b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
vi) Fill in the blanks:
I. Purchasing benefits arise by purchasing goods in _______quantities.

II. The total time taken for in-house production or for the procurement of a good from an
external source is called ___________.

a. I- Larger II- Procurement time

b. I- Normal, II- Replenishment lead time
c. I- Small, II- Procurement time
d. I- Larger, II- Replenishment lead time

vii) Fill in the blanks:

I. The general Poisson model combines both, arrivals and departures, based on the
assumption that inter-arrival time and service distribution time follow ___________
distribution.
II. While dealing with a queue, the number of people arriving or leaving the queue is not
fixed. This means that the rate of arrival or departure, or the number of people jumping the
queue is a ________ process.
a. I- normal, II- specific
b. I- exponential, II- random
c. I- exponential, II- random
d. I- binomial, II- specific

viii) Fill in the blanks:

I. The basis of quality lies in the _______________of the product and the perception of
service.
II. __________________is the degree to which the manufactured product or delivered service
meets the parameters that have been incorporated in the design.

a. I- specification II- Conformance to design

b. I- performance, II- Quality of design
c. I- specification, II- Quality of design
d. I- performance II- Conformance to design

ix) Fill in the blanks:

I. _________________is a method by which a comprehensive supply chain model can be

analysed, considering both strategic and operational elements.
 II. SCM applications fall into two main categories – planning applications and
__________applications.

a. I- Simulation method II- execution

b. I- Simulation method, II- functional
c. I- Rough cut methods, II- execution
d. I- Network design methods, II- functional

x) Fill in the blanks:

I. Value Engineering (VE) or value analysis is a methodology by which we try to

___________ the cost and improve the revenue of a product or an operation.
II. Special purpose machines, and robots are built to produce highly _________components at
reduced costs.

a. I- minimise II- specific

b. I- maximise, II- accurate
c. I- minimise, II- accurate
d. I- balance, II- specific

Section B
SHORT ANWER QUESTIONS (5 Marks each)
(Please answer any FOUR questions)
(4*5=20 Marks)

2. Differentiate between Service Operations Management and Product Operations Management?

3. What is service blueprint? Explain its components.
4. Explain Various Objectives of inventory management.
5. Elaborate pure birth model of Queuing Problems.
6. Explain the tasks to be done at end of a project.
7. Explain the operational and strategic classification of SCM decision making.
Section C

ESSAY-TYPE QUESTIONS (10 Marks each)

(Please answer any THREE questions)
(10*3=30 Marks)

8. Explain the framework of Operation Research.

9. What are the various Stages in Strategy Formulation?
10. Explain the concept of Positioning of services. Point out various strategies for service
positioning.
11. An organisation has three production centres P1, P2 and P3 that supply products to four
warehouses W1, W2, W3 and W4. The monthly production capacities of the three production
centres are 160, 150 and 190 units, respectively. The monthly demand of warehouses is 80,
90, 110 and 160 units, respectively. The transportation cost per unit (in rupees) is shown in
following Table

Warehouses W1 W2 W3 W4
Production centres
P1 10 12 8 15
P2 12 14 18 9
P3 15 12 20 16

How many units should an organisation supply to warehouses so that the total transportation
cost is minimised? Calculate Total Transportation Cost