Operations Management DEC 2025

Description

Operations Management

Dec 2025 Examination

 

 

Q1. A garment manufacturer is preparing for the upcoming financial year and anticipates significant fluctuations in demand due to seasonal trends and market uncertainties. The company must decide on the appropriate production rates, inventory levels, and workforce allocation to ensure continuous product flow and cost efficiency. The operations manager is expected to use aggregate operations planning techniques to translate business plans into actionable operational decisions. How should the operations manager apply aggregate operations planning methodologies to address the challenge of fluctuating demand and optimize resource allocation over the next financial year? (10 Marks)

Ans 1.

Introduction

In operations management, aggregate planning serves as a bridge between long-term strategic goals and short-term operational decisions. For a garment manufacturer facing seasonal demand fluctuations, it becomes crucial to maintain balance among production rate, inventory levels, and workforce size to ensure continuity and cost optimization. The objective of aggregate operations planning (AOP) is to develop a production plan that meets customer demand while minimizing costs related to labor, inventory holding, subcontracting, and backorders. By aligning production capabilities with market forecasts, the operations manager can achieve

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Q2. A fast-growing healthcare service provider is facing rising patient volumes and higher expectations for service quality. The management team must decide whether to invest in expanding facilities and hiring more staff (a long-term strategic move) or to optimize current resources through scheduling and process improvements (a short- term operational adjustment). The decision will impact financial commitments, service delivery, and the organization”s ability to respond to future changes in demand. Evaluate the decision-making process for capacity planning in a service organization that is experiencing rapid growth and increasing customer expectations. How should the organization weigh long-term strategic investments against short- term operational adjustments, and what criteria should be used to justify the chosen approach? (10 Marks)

Ans 2.

Introduction

In a rapidly expanding healthcare organization, capacity planning plays a crucial role in balancing resource utilization, patient satisfaction, and financial sustainability. The increasing patient volume and rising expectations for service quality necessitate a careful evaluation of whether to expand long-term capacity or optimize existing operations. Capacity planning in service

 

 

Q3(A).A manufacturing plant producing automotive components frequently faces unexpected disruptions, including equipment failures, late material deliveries, and last-minute order changes from customers. These issues often lead to missed deadlines and increased costs. The plant manager wants a systematic approach to manage these short-term operational challenges efficiently. Design a decision-making framework for short-term operational control that enables a manufacturing plant to effectively respond to real-time disruptions such as machine breakdowns, supply delays, and sudden changes in customer orders. How would your framework ensure minimal impact on delivery schedules and customer satisfaction? (5 Marks)

Ans 3a.

Introduction

In a dynamic manufacturing environment, operational disruptions such as machine breakdowns, delayed raw materials, and sudden order changes are inevitable. These events, if unmanaged, can lead to inefficiencies, production delays, and customer dissatisfaction. To counter these challenges, a structured short-term operational control framework is essential. Such a framework enables the plant manager to monitor, analyze, and respond to disruptions in real time. By integrating decision-making tools and proactive contingency measures, the organization can minimize downtime, ensure delivery reliability, and maintain cost-effectivenes

 

Q3(B). A company is experiencing frequent delays and shortages in material supply, leading to production stoppages and missed delivery deadlines. The current procurement process is fragmented, and communication with suppliers is inconsistent. The operations team is tasked with developing a new supplier integration strategy that streamlines inbound logistics, fosters collaboration, and ensures materials are available when needed for uninterrupted core operations. Design an innovative supplier integration strategy for a company seeking to improve inbound logistics and ensure timely material availability for its core operations. How would your strategy strengthen the linkages between the supplier layer, procurement, and core operations to enhance responsiveness and reduce operational disruptions? (5 Marks)

Ans 3b.

Introduction

For any manufacturing organization, the reliability of material supply is the backbone of operational stability. Frequent delays and shortages can halt production, inflate costs, and damage customer trust. The root of these issues often lies in fragmented procurement systems and weak supplier relationships. To address these challenges, an innovative supplier integration strategy is required—one that enhances collaboration, information transparency, and responsiveness. A well-designed integration model aligns suppliers with procurement and