BBS003
UNIVERSITY OF BOLTON
BOLTON BUSINESS SCHOOL
BUSINESS MANAGEMENT
SEMESTER 1 EXAMINATIONS 2014/2015
OPERATIONS MANAGEMENT
MODULE NO: BAM5003
Date: Tuesday 20th January 2015
Time: 2:00pm to 4:00pm
INSTRUCTIONS TO CANDIDATES:
There are four questions on this
paper.
Section 1 is compulsory.
Section 2 - answer any TWO
Questions in Section 1 are worth
40% and questions in Section 2
are worth 30% each.
Silent non-programmable
calculators may be used
A clean English/French or
English/German translation
dictionary may be used.
Page 2 of 2
University of Bolton
Bolton Business School
BA (Hons) Business Management
Semester 1 Examination 2014/2015
Operations Management
Module No. BAM5003
SECTION 1
This questions is COMPULSORY
1. A lawnmower manufacturer making a wide range of mowers to suit customer
specifications is considering changing its layout from product to process.
Discuss the implications of this proposal.
(40marks)
SECTION 2
Answer any TWO of the following:
2. Evaluate the advantages and disadvantages of using RFID technology in a
retail environment.
(30marks)
3. A greetings card business has a demand of 2000 items per annum. Stock
ordering costs are fixed at £100 irrespective of the scale of replenishment. It
costs £2.50 to hold one item in stock for one year. Calculate the economic
order quantity (EOQ) for the business (show your calculation). Then explain
the assumptions the company are making and examine the limitations of
using the EOQ method to manage their inventory.
(30marks)
4. Using the four V’s of operations (Volume, Variety, Variation and Visibility),
compare and contrast operations at a theme park with those at a doctors
surgery.
(30marks)
END OF QUESTIONS
Useful formula:
EOQ =
Where:
= Holding cost per unit
D = annual demand
= Ordering cost per order