Description
Operations Management
Sep 2026 Examination
Q1 A multi-specialty private hospital experiences major fluctuations in patient volume throughout the year. During seasonal illness peaks, outpatient departments become overcrowded, diagnostic units face long waiting queues, and pharmacies encounter shortages of fast-moving medicines. In off-peak periods, several staff members and service facilities remain underutilized. To improve operational efficiency and service quality, the hospital administration plans to adopt aggregate operations planning for better coordination of staff, facilities, and medical supplies across different planning periods. Explain how aggregate operations planning can help the hospital manage fluctuating patient demand through effective resource allocation, service rate adjustments, and capacity planning. (10 Marks)
Ans 1.
Introduction
Seasonal illness peaks overcrowding hospitals and outpatient facilities, and off-peak times that are when facilities and staff remain idle. is an eminent demand fluctuation problem that aggregate operations plans are specifically designed to address. Aggregate planning matches capacity to the expected demand over a long period of time, usually three up to 18 months. It is done by changing the workforce size or service charges and allocation over planning time instead of responding to each surge or lull individually depending on the situation. At this hospital, using plans that are aggregated across services for outpatients including diagnostics, pharmacy and
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Q2 A healthy snack company is preparing to launch a packaged protein bar after receiving positive feedback from local market trials. The company currently depends on one low-cost ingredient supplier and one contract manufacturer located in different regions with uncertain logistics reliability. While the procurement team recommends adding more suppliers to reduce dependence and supply risk, the finance team is concerned about increased coordination costs and production delays. Critically evaluate the sourcing strategy and explain how the company should balance cost efficiency, supplier diversification, quality assurance, and supply risk while selecting suppliers and manufacturing partners for the product launch. (10 Marks)
Ans 2.
Introduction
Relying solely on one ingredient vendor and one contract manufacturer for a new protein bar launches increases the risk right at the time it is the most vulnerable to disruption. One logistical failure or issue can delay or halt the entire process after several months of research and test feedback. The demand from the procurement team to diversify and the finance team’s concern about cost coordination reflect valid however incomplete views, and an effective sourcing plan requires making sure that you balance cost efficiency with risk diminution, quality assurance and
Q3 (A) The Nakel production unit has adopted a revised process-type layout using systematic layout planning, yet bottlenecks, unnecessary movement of workers, and material handling delays continue to affect productivity. Management now seeks a more efficient plant layout strategy to reduce non-value-added movement and improve operational performance. Explain how an improved plant layout can enhance workflow efficiency, space utilization, and cost control under increasing production demands. (5 Marks)
Ans 3 (A).
Introduction
Unavoidable bottlenecks and sloppy worker moving around despite the revised process layout suggests that the systematic plan of layout addressing division placement but not the more fundamental efficiency issues in material handling and flow. A better plant layout plan should go beyond just rearranging departments, and instead focus on productivity continuity, workspace
Q3 (B) A manufacturing company producing industrial packaging plans to relocate from its urban facility due to rising costs and environmental restrictions. A semi-developed region offers government incentives, lower labor costs, and expansion opportunities, but concerns remain regarding transport access, infrastructure, and supplier support. Design a facility location strategy that would help the company achieve operational efficiency, sustainable growth, and long-term competitiveness. (5 Marks)
Ans 3 (B).
Introduction
Transferring from an urban area to a semi-developed zone provides this industrial manufacturer with real cost and expansion advantages But a good plan for location of the facility must consider government incentives against transport, infrastructure and supplier support gaps before making a decision, and ensure that this move will actually improve long-term productivity rather
