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Questions on Operations Management

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Questions on Operations Management
MKT B370
Operations Management
SPECIMEN EXAMINATION PAPER
Important Note:
This specimen examination paper serves solely as an illustration of the types of questions which may be contained in the examination. Students should not construe these questions as the actual examination questions nor part of the actual examination paper. In addition, this specimen examination paper does not purport to represent the complete scope or coverage of the course and the distribution of the topics to be examined.

© The Open University of Hong Kong

SECTION A

〔Answer ALL THREE(3) questions〕

Question 1

(50 marks)

Read the article of “Bruegger’s Bagel Bakery”.
Bruegger’s Bagel Bakery
Bruegger’s Bagel Bakery makes and sells a variety of bagels, including plain, onion, poppy seed, and cinnamon raisins, as well as assorted flavours of cream cheese. Bagels are the major source of revenue for the company.
The bagel business is a 3 billion dollar industry. Bagels are very popular with consumers. Not only are the relatively low in fat, they are filling, and they taste good! Investors like the bagel industry because it can be highly profitable: it only costs about $0.10 to make a bagel, and they can be sold for $0.50 each or more. Although some bagel companies have done poorly in the recent years, due mainly to poor management, Bruegger’s business is booming; it is number on nationally with over
450 shops that sell bagels, coffee, and bagel sandwiches for takeout or on-premise consumption.
Many stores in the Bruegger’s chain generate an average of $800,000 in sales annually.
Production of bagels is done in batches, according to flavour, with each flavour being produced on a daily basis. Production of bagels at Bruegger’s begins at a processing plat, where the basic ingredients of flour, water, yeast, and flavourings are combined in a special mixing machine. After the dough has been thoroughly mixed, it is transferred to another machine that shapes the

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