Description

Operations Management

Apr 2026 Examination

 

Q1. An apparel retailer operating through both physical stores and online platforms is facing frequent stock-outs of fast-moving fashion items. Customer dissatisfaction has increased due to delays in restocking, particularly during promotional periods and sudden fashion trend changes. The situation is further complicated by volatile demand patterns, short product life cycles, and inconsistent supplier lead times. These challenges make it difficult for the supply chain team to align inventory availability with actual market demand.

In this context, how can inventory management concepts derived from aggregate operations planning be applied to address these challenges, reduce lead times, and improve responsiveness to customers in a fast-changing retail environment? (10 Marks)

Ans 1.

Introduction

In the modern apparel retail industry, managing inventory has become increasingly complex due to rapid fashion cycles, unpredictable consumer preferences, and the integration of online and offline sales channels. Stock-outs of fast-moving items not only reduce immediate sales but also damage customer trust and brand loyalty. Aggregate operations planning, which traditionally focuses on balancing supply and demand over medium-term horizons, offers valuable principles that can be adapted to inventory management in dynamic retail environments. By aligning production capacity, procurement decisions, and inventory policies with demand patterns, retailers can improve responsiveness and minimize disruptions. For the

 

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Q2. A fashion startup has developed a limited-edition outerwear collection and initially planned to work with a small set of print-on-demand suppliers to control costs and reduce operational complexity. However, the firm is now facing several challenges, including sharp increases in raw material prices, unreliable supplier performance, and uncertainty in production continuity. While the sourcing team proposes supplier diversification and trade-show-based partnerships to mitigate risk, the marketing team is concerned that sourcing from multiple suppliers may lead to inconsistent product quality and damage brand credibility.

In this situation, evaluate the sourcing strategies available to the startup. How should supplier selection and diversification decisions be guided to ensure cost efficiency without compromising product quality and long-term brand equity? (10 Marks)

Ans 2.

Introduction

For a fashion startup launching a limited-edition outerwear collection, sourcing decisions play a decisive role in shaping cost structure, product quality, and brand perception. Initially relying on a small group of print-on-demand suppliers may have offered simplicity and control, but rising raw material prices, inconsistent supplier reliability, and production uncertainty now expose operational risks. At the same time, expanding the supplier base introduces concerns about maintaining uniform quality and brand consistency. The startup therefore faces a strategic dilemma: whether to continue with a concentrated sourcing approach or diversify suppliers to reduce risk. Evaluating sourcing strategies through the lens of cost efficiency,

 

 

Q3(A) A public sector bank branch is experiencing long customer waiting times during peak hours. Customers frequently move between enquiry desks, cash counters, and service desks, leading to congestion and confusion. The current layout does not clearly separate quick transactions from time-consuming services, resulting in inefficient customer flow and employee overload.

Which type of plant (service) layout should the bank adopt to reduce customer waiting time, and why would this layout help in avoiding delays?  (5 Marks)

Ans 3a.

Introduction

Long waiting times in a bank branch usually come from two connected issues: unclear customer flow and a layout that treats every request as if it needs the same time and effort. When customers keep moving between enquiry desks, cash counters, and service desks, congestion builds up and employees spend energy managing queues instead of serving. To reduce delays in peak hours, the branch needs a layout that guides customers naturally, separates quick work from slow work, and keeps movement simple and predictable.

Concept and Application

A practical solution is to redesign the branch around a flow-based service layout that behaves

 

Q3(B) A leading retail chain is planning to enter a dense urban market marked by intense competition, high real estate costs, limited parking space, and congested traffic conditions. Although the area offers high customer density and strong demand potential, challenges related to site accessibility, last-mile logistics, and operating costs threaten overall profitability. The leadership team is therefore exploring location options.

Think through this situation, identify any 3 location decision criteria you would choose and justify briefly how you see that addressing the question situation challenge? (5 Marks)

Ans 3b.

Introduction

Entering a dense urban market can look attractive because footfall potential is high, but profitability becomes fragile when rent is expensive, parking is limited, and traffic slows both customers and deliveries. In such locations, a retail chain cannot depend on traditional “big space, easy access” logic. The location decision must directly address accessibility, last-mile efficiency, and cost sustainability. Choosing the right site criteria helps the firm protect