2 Sep 2014

Smu mba operations management sample paper set two


2
2. Match the following
Match
Correct Answer
User answer
Feedback

General overhead and administrative cost
Sales marketing and other overhead costs excluding operating costs
Direct+indirect costs
incorrect
Direct cost
Raw material costs, direct labour costs
Rent, Salaries, staff welfare
incorrect
Fixed cost
Rent, Salaries, staff welfare
Raw material costs, direct labour costs
incorrect
Total operating cost
Direct+indirect costs
Sales marketing and other overhead costs excluding operating costs
incorrect

3. For a plant with a capacity of 100 units, fixed cost of 1000 Rs and a variable cost of 10 rs per unit, which of these options yield the lowest production cost per unit?
Correct
Producing 100 units
Feedback:
Right choice - Unit cost= Fixed cost/no of units+ variable cost per unit; by this the unit cost comes to 20 Rs which is the most optimal.
Producing 40 units
Adding another plant of the same capacity and producing a total of 150 units
Adding 2 more plants of the same capacity and producing a total of 200 units
OM0010-Unit-06-1Mark-Questions
1. Companies prefer to locate their __________ facilities in such countries to reduce delivery costs and also to be closer to the customers.
Wrong
Transporting
Feedback:
Not the right choice: Transport cannot be located in one place.
Service
Correct
Manufacturing
Planning

2. Identify the regional factor that does not affect Location Decision:
Market location
The location of Raw Materials
Wrong
Labour issues
Feedback:
Not the right choice: This is one of the factors that affect Location Decision.
Correct
Decide on the criteria to be used for evaluating different location alternatives.

3. The other important factor which has to be considered in Location Decision is __________.
Access and zoning or other restrictions
Correct
Site-Related Factors
Feedback:
Right choice - Site-Related Factors are one of the important factors to be considered in Location Decision.
Land
Transportation

4. Which of the following statements are false:
Wrong
1991 saw global companies entering the Indian market.
Feedback:
Not the right choice: This statement is true, in 1991 the Indian government eased the regulatory environment by relaxing tariffs and entry barriers.
A retail chain prioritises proximity to customers while choosing its location.
Cheaper manpower costs attracted developed nations to set up operations in developing nations.
Correct
A retail chain prioritises proximity to suppliers while choosing its location.
. Which of these is NOT a way to optimise fixed costs?
Employment of temporary labour force
Multiskilling of workmen
Wrong
Quick changeover time of machines
Feedback:
Not the right choice: This will result in optimisation of fixed costs.
Correct
Optimising raw materials

3. The price of a product is equal to:
Correct
Direct costs of production only.
Wrong
Direct cost of production+marketing costs.
Feedback:
Not the right choice: The cost of product includes the total operating cost( direct and indirect) plus the general overhead and administrative costs plus the desired profit.
Direct cost of production+indirect cost of production + general overhead and administrative charges + desired margin.
Total operation cost+profit.

4. Identify the correct statement:
Wrong
Economies of Scope is mass production of one type of product.
Feedback:
Not the right choice: Economies of scope achieve volume by producing a variety of products.
Economies of scope imply investment in alternative plant and machinery.
Higher quality implies lower cost.
Correct
More features a product has implies higher costs.
OM0010-Unit-05-4Mark-Questions
1. A company with large investments in technology, plant, and equipment with low running costs is an example of:


High fixed cost, high variable cost
Correct
High fixed cost, low variable cost
Wrong
Low fixed cost, low variable cost
Feedback:
Not the right choice: The correct option is high investment simply high fixed cost and low running cost.
Low fixed cost high variable cost
5. Which of these define product plant strategy?
Correct
Different plants produce different product lines
Wrong
Different plants run different processes.
Feedback:
Not the right choice: This is the definition of process plant strategy.
All product lines are completely produced in one plant.
Plants are designed to serve a particular geographic segment of the market.

6. ______________ are the different types of strategies used in production plants, marketing plants and processing plants.
Wrong
Process plant strategy
Feedback:
Not the right choice: The strategy focuses on different aspects of a process in different plants.
Market area plant strategy
Product plant strategy
Correct
Multi-Plant Strategies

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