MANAGEMENT-RELATED QUESTIONS AND ANSWERS

         MANAGEMENT-RELATED QUESTIONS AND ANSWERS

 Q:The mean demand of surgical units is 300 units per month the monthly standard deviation is 20 units find the minimum and maximum demand for 90% service level

sol:To find the minimum and maximum demand for a 90% service level, we can use the formula for the lower and upper control limits for a control chart, which are given by:

Lower Control Limit (LCL) = Mean - (3 x Standard Deviation)

Upper Control Limit (UCL) = Mean + (3 x Standard Deviation)

Given that the mean demand is 300 units per month and the standard deviation is 20 units per month, we can plug these values into the formulas to find the LCL and UCL:

LCL = 300 - (3 x 20) = 240 units

UCL = 300 + (3 x 20) = 360 units

So, the minimum demand for a 90% service level is 240 units per month and the maximum demand for a 90% service level is 360 units per month.

Q: "Company ABC is planning to expand business operations in other countries for this the company has planned for adopting a strategy that would enable it in making centralized business decisions which of the following strategies should the company use for this purpose”

 a)Global 

b)multi-domestic 

c)International

 d)transnational

Sol: The company, ABC, should use a global strategy in order to make centralized business decisions while expanding business operations in other countries. This strategy allows the company to make centralized decisions while maintaining a consistent approach across all international markets.

Q: which of the following the given options is not it tool used in the total quality management 

a)cause and effect model          b) check sheet

sol:The "cause and effect model" is a tool used in Total Quality Management.

Q:"THE concept of continuous improvement is mainly related to with following criteria 

a) flexibility  b)cost  c)quality  d) all of the above

Sol: The concept of continuous improvement is mainly related to all of the above criteria: a) flexibility, b) cost, c) quality.

Flexibility refers to the ability of a process, system, or product to adapt to changing conditions or customer needs. Continuous improvement aims to increase flexibility by identifying and implementing changes that make processes, systems, or products more adaptable.

Cost refers to the resources, such as time and money, required to produce a product or service. Continuous improvement aims to reduce costs by identifying and implementing changes that make processes, systems, or products more efficient.

Quality refers to the degree to which a product or service meets or exceeds customer expectations. Continuous improvement aims to increase quality by identifying and implementing changes that improve the performance or reliability of products or services.

Q: which of the following is not a reason for bullwhip effect

 a) communication issues

 b)labor issues

c)quality issues 

d) all of the above factors can cause a bullwhip effect"

Sol: Labor issues is not a reason for bullwhip effect.

The bullwhip effect refers to the phenomenon where small variations in demand at the retail level can lead to large fluctuations in demand at the wholesaler, distributor, and manufacturer levels. This can be caused by a number of factors, including:

• Communication issues: Poor communication or lack of information sharing between different levels of the supply chain can lead to misunderstandings about demand, causing the bullwhip effect.

• Quality issues: If suppliers are uncertain about the quality of their products, they may overproduce or hold back inventory to cover for potential quality issues, which can lead to the bullwhip effect.

• All of the above factors can cause a bullwhip effect.

Labor issues can cause a problem with the production but it's not the main reason of bullwhip effect.

Q: "all American boot manufacturers manufacture boots of varying styles for girls and boys in leather and non-leather varieties. these boots are available as flat boots, ankle length boots. determent ,how many kinds of boots are being produced by the company a) 3 b) 6 c)12 d) 12

Sol: The number of kinds of boots that are being produced by the company is 12.

According to the statement given, the American boot manufacturers are producing boots for both girls and boys, in both leather and non-leather varieties, and in both flat and ankle-length styles.

Here's how the number of different types of boots breaks down:

• 2 types of boots (leather and non-leather)

• 2 types of boots (for girls and for boys)

• 2 types of boots (flat and ankle length)

When you multiply 2 x 2 x 2, the total number of different types of boots is 12.

So, the answer is d) 12.

Q: span of control refers to the total number of employees controlled by a manager span of control can be wide or narrow depending upon the needs of an organization which of the following is a characteristic of a wider span of control 

a) tall organization involve wide span of control 

b) effective control of manager over the group

 c) requires less number of managers 

d) none of the above

Sol : A characteristic of a wider span of control is d) none of the above.

Span of control refers to the total number of employees controlled by a manager. A wide span of control means that a manager is responsible for overseeing a larger number of employees, while a narrow span of control means that a manager is responsible for overseeing a smaller number of employees.

• Tall organizations often involve a narrow span of control, as there are many layers of management, each with a smaller number of subordinates.

• Effective control of manager over the group can be maintained in both wide and narrow span of control, it depends on the manager's ability to manage his team effectively.

• Requires less number of managers is also a characteristic of a wide span of control, as fewer managers are needed to oversee a larger number of employees.

It's important to note that the needs of the organization will determine the span of control. Some organization prefer to have a wide span of control to be more cost effective, while others prefer a narrow span of control for effective control and management.

Q:the competitiveness of the market would be reduced under the following circumstances a) when the bargaining power of buyers is high b) when the bargaining power of suppliers for high c) when there is the availability of a large number of substitutes for a product d) when the market has high entry barriers

sol:The competitiveness of the market would be reduced under the following circumstances:

a) when the bargaining power of buyers is high: When buyers have a lot of options to choose from and can easily switch to another supplier, they can negotiate better prices and terms from sellers, which can decrease the competitiveness of the market.

b) when the bargaining power of suppliers is high: When suppliers have a lot of options to choose from and can easily switch to another buyer, they can negotiate better prices and terms from buyers, which can decrease the competitiveness of the market.

c) when there is the availability of a large number of substitutes for a product: When there are many substitutes available, it becomes difficult for firms to differentiate their products and charge premium prices, leading to increased competition and reduced competitiveness of the market.

d) when the market has high entry barriers: High entry barriers make it difficult for new firms to enter the market, reducing the competition and competitiveness of the market.

All of the above-mentioned circumstances can decrease the competitiveness of the market by making it harder for firms to differentiate themselves, charge premium prices, and make profits.

Q: the launch of Nintendo Wii against Sony PlayStation and Microsoft Xbox is an example of

 a) Blue Ocean Strategy

 b) red awesome strategy

 c)radical improvement

 d)incremental improvement

Sol: The launch of Nintendo Wii against Sony PlayStation and Microsoft Xbox is an example of a) Blue Ocean Strategy.

Blue Ocean Strategy is a business strategy that aims to create new market spaces and make the competition irrelevant by creating new, untapped market spaces. The Nintendo Wii was positioned as a new type of gaming console that used motion-sensing technology and was targeted at a different market segment than the Sony PlayStation and Microsoft Xbox. This allowed Nintendo to create a new market space that was not directly competitive with these established players and led to a significant increase in market share for the company.

On the other hand, red ocean strategy is focused on competing in the existing market space with the established players, and trying to beat the competition by differentiating on the basis of price, quality, and features.

Radical improvement is a strategy that focuses on introducing new products or services that are significantly better than existing ones.

Incremental improvement is a strategy that focuses on making small, gradual changes to existing products or services in order to improve them.

Q: "when will the number of months and Ottoman lost with annual demand 4000 ordering cost dollar 50 order and inventory holding cost is Dollar 5 per unit per year 0.84 month 0.5 month 0.98 month 0.99 month"

sol:The number of months of Ottoman lost with an annual demand of 4000, ordering cost of $50, order and inventory holding cost of $5 per unit per year, can be calculated using the Economic Order Quantity (EOQ) formula.

EOQ = sqrt(2DS/H)

Where:

D = Annual demand (4000)

S = Ordering cost ($50)

H = Holding cost ($5 per unit per year)

EOQ = sqrt(2(4000)(50)/5) = sqrt(400,000) = 200

The time between orders (in months) can be calculated using the formula:

Lead time + Cycle time = Time between orders

Cycle time = EOQ / (Demand per year / 365 days per year)

Lead time = Time for supplier to deliver the order

Cycle time = 200 / (4000/365) = 0.84 months

Therefore, the time between orders is the sum of the lead time and the cycle time.

If the lead time is 0.5 month and the cycle time is 0.84 month, the time between orders is:

0.5 month + 0.84 month = 0.98 month

This means that the Ottoman is lost for 0.98 month.

Please note that, this answer depends on the information provided, and there could be variations on the results if any of the parameters change.

Q:a company produces car components but because of high demand the management feels it won't be able to produce all the demand in the house which of the following I will not benefit if the company outsources a certain part of its production operations a)Outsourcing does not help to enhance the company's expertise in core areas b)company fails to implement offensive strategies c)innovation get halted for the company d)the company able to concentrate on core resources on the capability

Sol: The statement that is not true if the company outsources a certain part of its production operations is:

a) Outsourcing does not help to enhance the company's expertise in core areas.

When a company outsources a certain part of its production operations, it can benefit in the following ways:

• By outsourcing certain non-core activities, the company can focus on its core competencies and enhance its expertise in those areas.

• Outsourcing can allow the company to implement offensive strategies such as expanding into new markets or launching new products.

• Outsourcing can free up resources and allow the company to invest in innovation and research and development.

• Outsourcing can help the company to concentrate on its core resources, such as production and marketing.

Outsourcing can have benefits for a company but it's important for the management to evaluate the risks and challenges of outsourcing and to have a good plan in place to ensure that the outsourcing arrangements are working as intended.

Q: the concept of matrix organizational structure has become very popular in recent days what is the prime benefit of this structure a)that helps in reducing confusions and conflicts b) a single manager helps in error-handling control over employees c)helps in Greater equalization of resources d)all of the above or benefits of matrix organizational structure

Sol: The prime benefit of the matrix organizational structure is d) all of the above or benefits of matrix organizational structure.

Matrix organizational structure is a type of organizational structure that combines elements of functional and project-based structures. It is designed to increase flexibility and responsiveness while also improving coordination and communication across different departments and teams.

The benefits of matrix organizational structure include:

• Reducing confusion and conflicts: By aligning employees with both functional and project-based teams, matrix organizational structure can help to reduce confusion and conflicts that can arise when employees report to multiple managers.

• Error-handling control over employees: With a single manager responsible for overseeing the work of employees in both functional and project-based teams, matrix organizational structure can help to improve error-handling control over employees.

• Greater equalization of resources: By pooling resources from different functional teams and assigning them to specific projects, matrix organizational structure can help to improve the equalization of resources and ensure that resources are used in the most effective way.

All of the above-mentioned benefits can help organizations to increase their efficiency, flexibility and responsiveness.