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OPERATIONS MANAGEMENT
CASE-1 (16 Marks)
Bloomsday
Outfitters produces T-shirts for road races. They need to acquire some new
stamping machines to produce 30,000 good T-shirts per month. Their plant
operates 200 hours per month, but the new machines will be used for T-shirts
only 60 percent of the time and the output usually includes 5 percent that are
"seconds" and unusable. The stamping operation takes 1 minute per
T-shirt, and the stamping machines are expected to have 90 percent efficiency
considering adjustments, changeover of patterns, and unavoidable downtime. How
many stamping machines are required?
CASE-2
(16 Marks)
In
the table given below the Distribution Manager is expected to service these DCs
as per the demands placed. If the actual sales after completing week one is as
follows, what would be the quantities that would need amendment as far as
Distribution Manager is concerned to service for week two and onwards?
After
week one the actual sales to Forecasted sales for week one ratio is as under:
Mumbai did 80 % of forecast , Lucknow did 75 % of forecast Kolkata did 60 % of
week one forecast Chennai did 125 % of forecast and Delhi did 150 % of week one
forecast
CASE-3
(16 Marks)
After
working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier
company and did very well in the first four years. He was now looking for
expansion of his business and decided to venture into Road transportation
business between Chennai and Mumbai and Mumbai and Delhi as he felt that he
could do well on this line. However before taking a final decision he hires
your Management Consultant firm formed by yourself. He has requested you to
work out the Price to quote
his
clients for these two routes considering the costs involved. He expects to earn
a minimum profit of Rs 1000 per day per truck after meeting all expenses. Your
analysis of market conditions tell you the following:
Vehicle
cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers
monthly Salary Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs
200 per day. Driver allowance is Rs 125 per day and attendant gets Rs 75.
Diesel cost per liter is Rs 25 and the vehicle gives an average mileage of 4 km
to a liter. The Financial institutions offer loans at 10 % interest pa, which
Ramjee has been negotiating. It has been observed that on an average the
vehicle covers 400 km per day. The
distance
between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver
gets rest day in Mumbai only for one day after they return from any trip.
CASE-4
(16 Marks)
A
company is operating in two unrelated businesses. The first one is making
common salt, which is sold in one-kilogram consumer packs. The second business
is making readymade garments. The owner of the businesses has decided to
implement Materials Requirement Planning (MRP) in one of the two businesses,
which is likely to give him greater benefit. Assuming that the current turnover
and profits of both the units are comparable, compare the relative benefits and
limitations of Materials
Requirement
Planning (MRP) for these two businesses.
CASE-5
(16 Marks)
A
Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now he wishes to
manufacture the plugs in his own factory. The estimated cost for the
manufacture of spark plugs is around Rs.50,000=00 and the variable cost comes
to Rs.5 per spark plug. The Production Manager advises the Manufacturer that
the factory should go for manufacturing instead of procuring them from the open
market. List out reasons for the decision of the Production Manager backed up
by the necessary data.
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