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DRIVE SPRING 2016
PROGRAM MBA
SEMESTER III
SUBJECT CODE & NAME OM 0010 - OPERATIONS MANAGEMENT
1 Write short notes on :
a. Origin of operations research
b. Levels of Strategies in an Organisation
c. Consumer Pricing Expectations Range
Answer: Origin of operations research
Operations research as a discipline originated in Britain during World War II. At that time, the
military forces were having very limited resources and they were forced to allocate those
scarce resources in an effective manner. To deal with this problem, the British military
management hired a number of scientists and asked them to perform research on military
operations. The scientists
2 Explain following Models of Operations Research
a. Iconic model
b. Analogue model
c. Symbolic model
d. Descriptive model
Answer: Iconic model: This model is an exact representation of a particular entity. It
includes various diagrams, graphs, and charts that aid a manager in the decision-making
process. This model can be full-scale, scaled-down or scaled-up in size, as discussed below:
A full-scale model
3. Case Study: Services Operations Management at XYZ Restaurant
XYZ restaurant has been performing satisfactorily over the last 30 years. It opened its
first outlet in the year 1980 in Pune, and since then it has grown to 1000 outlets in the
mid-east Asia. In the year 2000, XYZ restaurant enjoyed the maximum footfall in
almost all the nations it was present. By 2005, it added Italian and French food in its
menu to compete with the established international brands in this field. XYZ followed a
process of service operations management, which focuses on delivering excellent
services to the customers.

After some time, XYZ faced a problem of low quality of French and Italian food that
was not at par with other restaurants. The nations of mid-east Asia did not welcome the
change in the image of XYZ from local food chain restaurant to international
restaurant. The customers found lower quality of French and Italian foods in XYZ than
they used to get in other restaurants. The offering, delivery and image of XYZ could not
match the new services and customers avoided to visit XYZ for Italian and French
foods. The market of this restaurant was still favouring its local sense of cooking food.
XYZ soon reverted to the earlier service operations and policies of local belongingness
and thus recovered the lost customers.
Discussion questions:
1. What can be the reasons for the failure of XYZ restaurant in introducing French and
Italian foods?
2. What strategies could have helped XYZ restaurant while introducing new services?
1. What can be the reasons for the failure of XYZ restaurant in introducing French and Italian
foods? (Hint: The reasons can be failure of making planning activities, monitoring and
controlling activities and quality assurance activities)
2. What strategies could have helped XYZ restaurant while introducing new services? (Hint:
Following SERVQUAL and evaluating the performance of services)
Answer: 1. Service operations management can be defined as a process that focuses on
delivering excellent services to the customers. Other definitions are as follows:
Service operations management ensures that the attention is given to the correct
functional service delivery areas.
Service
4 Explain the following criterions that a decision maker may adopt under uncertain
conditions.
a. Maximax Criterion
b. Maximin Criterion
c. Minimax Regret Criterion
d. Realism Criterion
e. Insufficient Reason Criterion
Answer: Maximax Criterion: It is the criterion in which a decision maker selects the
alternative that provides the maximum payoff. This criterion is based on the assumption that
all available alternatives would provide the best possible outcome. Maximax criterion is a
strategy that
5. Solve the assignment problem shown in the following table:
1
2
3
4
A 10
12
19
11
B
5
10
7
8
C 12
14
13
11
D
8
15
11
9
Also determine the total assignment cost.
Optimal assignment total assignment cost

Answer: Conduct row and column operations as the assignment problem is balanced. The
row operations involve selecting an element having a minimum value in each row starting
from row A and subtracting that element from all other elements in that row. After
6 There are four jobs, namely D, E, F, and G, which need to be sequenced on two
machines, namely machine 1 and machine 2. The processing time of the jobs D, E, F,
and G on machine 1 are 2, 6, 4, and 8, respectively. However, on machine 2, the
processing time of D, E, F, and G is 3, 5, 7, and 4, respectively. Determine the job
sequencing for this problem and Total flow time for four jobs.
Optimum Sequence
Total flow time
Answer: The steps involved in solving the preceding sequencing problem are as follows:
1. Prepare a table that contains the processing time of the four jobs on the two machines,
as shown in Table
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