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Section-A

problem1) Why it is significant to know stage of product life cycle in which the equipment is, in the context of maintenance?

problem2) Why do firms engage themselves in the operations strategy exercise?

problem3) Describe (a) the relationship between production rate and cycle time and (b) their interpretation in synchronous production.  What does it mean for workstations in a process to be balanced?

problem4) describe principles of the Toyota production system and how it is a departure from traditional production systems.

Section-B

Hydro-Electric Company (HEC) has three sources of power.  Small amount of hydroelectric power is generated by damming wild and scenic rivers; second source of power comes from burning coal, with emissions which create acid rain and contribute to global warming; third source of power comes from nuclear fission.  HEC’s coal-fired plants use obsolete pollution-control technology, and the investment of several hundred million dollars will be required to update it.  Environmentalists urge HEC to promote conservation and purchase power from suppliers which use the cleanest fuels and technology.

Though, HEC is already suffering from declining sales, that have resulted in billions of dollars invested in idle equipment.  Its large customers are taking advantage of laws that permit them to buy power from low-cost suppliers.  HEC should cover fixed costs of idle capacity by raising rates charged to its remaining customers or face defaulting on bonds (bankruptcy).  Increased rates motivate even more customers to seek low-cost suppliers, start of a death spiral for HEC.  To prevent extra rate increases, HEC implements the cost-cutting program and puts its plans to update pollution controls on hold.

describe the ethical, environmental, and political issues and trade-offs associated with HEC’s strategy.

Operation Research, Management Studies

  • Category:- Operation Research
  • Reference No.:- M93385

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