Assignment-3

Question 1 Describe clearly the function of Routing, Scheduling and Dispatching.

Question 2 List and Classify the Dispatching Rules
Question 3 Write Short notes on
(i) Dispatching of Move Card
(ii) Dispatching of Work card
(iii) Dispatching of Inventory Card
(iv) Expediting
Question 4 What are control charts? Explain in Detail.
Question 5 Define the Following Terminologies
(i) Attribute Data
(ii) Mean
(iii) Median
(iv) Normal Distribution
(v) Standard deviation
(vi) Variable Data
(vii) Variance
 Assignment-4
Question 1 The Network Diagram of a Project is Given in Figure 1 Below. The activity times
in days are Shown on the arcs
Determine
(i) Critical Path and Critical Path time
(ii) Total float and Free Float of Activity
(iii) If due to unavoidable reasons activity (1-3) takes 6 days instead of 4, Find the
change in the Critical Path.

3
5 6
1
2

Figure 1
Question 2 Table 1 Gives the different activities associated with a project and their durations.
Draw the network diagram and determine the critical path. Also Determine the Critical Path
Time.
Table 1

Activity Event Duration (Day)

Beginning(i)
A 1
B 2
C 1
D 1
E 4
F 1
G 5
H 1
I 3
J 6
Ending(j)
2 47
3 43
3 80
4 33
7 33
5 21
8 37
8 50
6 22
9 22
 K 9 11 86
L 8 10 22
M 10 11 22
N 11 12 21
O 12 13 63
P 7 11 150

Question 3 Table 2 gives the different activities associated with a project consisting of 12 tasks
(A,B ….,L)in which the following precedence relationships must hold (X ∠Y means X must
be completed before Y can Start) :
A ∠C; A ∠B; B ∠D; B ∠G; B ∠K; C ∠D; C ∠G; D ∠E; E ∠F; F ∠H; F ∠I; F ∠L; G ∠I; G ∠L;
H ∠J; I ∠J and K ∠L
Table 2

Task A B C D E F G H I J K L
Time
30 7 10 14 10 7 21 7 12 15 30 15
(Days)

Determine the network Diagram and determine the critical path. Also Determine the critical
path time.
Question 4 A small plant layout job consists of 10 steps. Their precedence relationships and
activity times are identified as follows:
Step Predecessor Time (Hours)
A None 9
B None 13
C None 16
D A 18
E B 19
F B 8
G C,F 11
H D,G 9
I E,H 26
J C,F 35
Draw the network and complete the forward and backward passes. What activities make up
the critical path? Which activity has the most slack?
Question 5 A Building Project consists of 10 Activities. Their Estimated duration is given
below:
Activity Duration
1-2 5
2-3 2
2-4 6
3-5 4
3-6 4
 4-5 2
4-7 3
5-8 7
6-8 8
7-8 2
Draw the network and compute (i) event times (ii) activity time (iii) Total Float and determine
the (iv)Critical Path
Question 6 In a PERT analysis, The Critical Path of a project is of 120 day with a variance of
16 (𝑑𝑎𝑦𝑠)2 Determine the 95% confidence limits of the project completion Time.
Question 7 What is the standard deviation of the project completion time along the critical
path, if the standard deviations of the corresponding activities are S1, S2 and S3?
Question 8 With reference to critical path method define the following terms with a brief
description of each of them:
(i) Critical Path
(ii) Project Graph
(iii) Early Start and early Finish times
Question 9 What is the distribution followed by the activity durations of a PERT network?
Mention its mean and Standard deviation.
Question 10 How do slacks in PERT and Float in CPM decide on selection of critical path ?
Question 11 Draw the PERT network for the activities whose three times estimates are given
in the table
Activity Predecessor Activity Optimistic Time Pessimistic Time Most Likely Time
A - 1 5 3
B - 2 4 3
C - 3 5 4
D A 2 10 9
E C 4 6 5
F B,D,E 5 13 6
G A 2 6 4
H G,F 0 6 3
From the three time estimates obtain the expected times of all the activities and slacks of all
the events. Also find the critical path.

Question 12 What is a Critical Path? Why is critical path of such importance in large project
scheduling and control?
Question 13 A typical activity i-j in a CPM network has activity duration (𝑡𝑖𝑗 ) of 2.5 time units.
The earlier expected time (𝑇𝐸𝑖 ) and latest allowable occurrence time (𝑇𝐿𝑖 ) of event I are
𝑗 𝑗
computed as 8 and 11 units respectively. The corresponding time of event j, i.e. 𝑇𝐸 and 𝑇𝐿 are
respectively 13.5 and 13.5 units. Find the three floats of the activity i-j.
Question 14 A Project consist of 7 jobs. Job A and F can be started and completed
independently. Jobs B and C can start only after job A has been completed. Jobs D,E and G
can start only after jobs B, (C and D) and (E and F) are completed, respectively. Time estimates
of all the jobs are given in the following table:
Time Estimates (Days)
Job
Optimistic Pessimistic Most Likely
A 3 7 5
B 7 11 9
C 4 18 14
D 4 12 8
E 4 8 6
F 5 19 12
G 2 6 4
Draw the network and determine the critical path, and its expected duration (𝑇𝑒 ). What is the
probability of completing the project in 𝑇𝑒 days? Also, Determine the total and free slacks of
all the jobs.
Question 15 Consider a project with following precedence requirements and estimated times:
Activity Time in weeks Immediate Predecessor
A 3 -
B 5 -
C 7 -
D 3 C
E 7 A,B
F 3 E,D
G 2 D
H 2 F,G
Draw CPM network and Find the critical Path.
Question 16 Consider the following Schedule of Activities and related information for
construction of a new International Airport.
Expected Time
Activity Expected Cost Rupees × 104
Months Variance
1-2 4 1 5
2-3 2 1 3
3-6 3 1 4
2-4 6 2 9
1-5 2 1 2
5-6 5 1 12
4-6 9 5 20
5-7 7 8 7
7-8 10 16 14
6-8 1 1 4
Assume the cost and tie required for one activity are not dependent upon the cost and time of
any other activity and variations are expected to follow a normal distribution. Find:
(i) The Critical Path
 (ii) The expected cost of construction of the airport
(iii) The expected time required to build the airport; and
(iv) The standard deviation of the expected time.
Question 17 A Plant Start up of Activities are based on the following sequences:
Immediate Normal Time Normal Possible Crash Crashed
Activity
Predecessor (weeks) Cost (Rs) Time (Weeks) Cost
A - 4 1000 2 1500
B - 8 800 2 1400
C - 2 400 1 600
D A 3 800 2 1200
E A 5 800 3 1400
F C 5 600 1 1000
G H, D 6 1200 2 1600
(i) Draw the network for this project and label the activities and dummies
(ii) Identify the critical path.
(iii) What is the normal project completion time and cost?
(iv) How much it will cost to crash the project completion by 2 weeks; by 3 weeks?
(Assume, crashing cost is proportional to time).
(v) What is cost over-run and time over-run, and which is worse?
Question 18 A project is composed of eleven activities. The time estimates are given below

Activity 𝑡𝑜 𝑡𝑝 𝑡𝑚
1-2 7 17 9
1-3 10 60 20
1-4 5 15 10
2-5 50 110 65
2-6 30 50 40
3-6 50 90 55
3-7 1 9 5
4-7 40 68 48
5-8 5 15 10
6-8 20 52 27
7-8 30 50 40
(i) Draw the network Diagram.
(ii) Calculate the slack time for each node.
(iii) Determine the critical Path.
Question 19 Following Data refers to the gas pipe project:
Duration (Weeks)
Activity Predecessor
Optimistic time, a Most likely time, m Pessimistic time, b
A - 3 5 8
B - 6 7 9
C A 4 5 9
D B 3 5 8
E A 4 6 9
F C, D 5 8 11
 G C, D, E 3 6 9
H F 1 2 9
(i) Construct Project Network
(ii) Find the expected Duration and Variance of each activity
(iii) Find Critical Path and expected project completion time.
(iv) What is the probability of completing the project on or before 30 weeks?
Question 20 A Project consist of six activities. The Precedence relationship of activities and
the three time estimates of completion of activities in days are tabulated below:
Estimate time of Completion (Days)
Sr No. Activity Immediate Precedent Activity
Optimistic Pessimistic Most Likely
1 A - 0.5 1.5 1.00
2 B A 1.0 3.0 2.00
3 C B 2.0 2.0 2.00
4 D A 4.1 4.1 2.75
5 E A 4.0 4.0 1.63
6 F C, D, E 6.0 6.0 3.75
(i) Draw the arrow diagram
(ii) Which of the six activities is more uncertain?
(iii) What is the probability that the project will be completed within 10 days?
 Assignment-5

Question 1 A stockist finds that monthly demand for a particular ball pen is 2000. The price of
each pen is 80 paisa and Cost of placing the order is Rs 20. The Cost of Stocking the pen per
month is 10% of the price of Pens. What is the Economic Order Quantity?
Question 2 A Medicine manufacturing company, for packing their product, uses glass phials
which they collect from a nearby factory in batches at equal interval of time throughout the
year. Determine economic batch size for each collection on the basis of the following data:
Estimated Annual Requirement 2,50,000 pieces
Purchase Price Re 1 Per Piece
Cost of Transportation Rs 100 per Trip
Cost of Storage Rs 10 Per thousand per Year
Interest of Investment 15% per year
Minimum Inventory to be maintained at any time 1000 pieces
And Calculate cost of inventory per piece including all charges.
Question 3 State Pareto’s Principle. State some of its application. What is ABC inventory
System? Describe briefly the procedural steps taken in this system.
Question 4 A store sells 5200 cases of a cold drink per year. The Supplier charges Rs 100 for
each Delivery, regardless of how many cases have been ordered; delivery always occurs the
day after ordering and the average carrying cost is Rs 10.40 unit per year. Find the number of
cases per order.
Question 5 Expand MRP I and MRP II, Indicate the difference and similarity between them.
Question 6 Indicate the similarity and differences between EOQ and EBO in manufacturing.
Question 7 What is an Inventory? A company uses a certain component X at the rate of
5000/year. The cost/item is Rs. 20 and it costs Rs 200 to place an order. The annual carrying
cost of inventory is 10% of the price of the item. Storage cost is negligible. Assume zero safety
stock. Calculate the Economic order Quantity (EOQ).
Question 8 ABC company has to supply 30,000 switches per year to its customer. This demand
is fixed and known. The customer uses its items in assembly operations and has no storage
space. A shortage cost of Rs. 10/unit is incurred if the company fails to deliver the required
units. The set up cost per run is Rs 3,500.
(i) The optimum run size, q
(ii) The optimum level of inventory at the beginning of any period.
(iii) The optimum scheduling period
(iv) The minimum total expected annual cost.
Question 9 Why do we need inventory? Explain why we need to optimize the order quantity.
The demand for a component is 10000 pieces per year. The cost per item is Rs 50 and the
interest cost is 1% per month. The cost associated with placing an Order is Rs 240. What is the
EOQ?
Question 10 For XYZ company, the annual requirement of an item is 2400 units. Each item
costs the company Rs. 6. The Supplier offers a discount of 5% if 500 or more quantities are
purchased. The Ordering cost is Rs. 32 per order and the average inventory cost is 16%. Is it
advisable to accept the discount? Comment on the result.
Question 11 with the help of quantity-cost curve, explain the significance of Economic Order
Quantity (EOQ). What are the limitations of using EOQ Formula?
Question 12 Is Material Requirement Planning a Material planning system, a production
planning system, or both? Explain.
Question 13 Name the three costs involved in the inventory control. A store procures and sells
certain items. Information about an item is as follows:
Expected annual sales=8000 Units
Ordering Cost= Rs 1,800 per order
Holding Cost= 10% of average inventory value
The items can be purchased according to the following Schedule:
Lot Size Unit Price (Rs)
1-999 220
1000-1499 200
1500-1999 190
2000 and above 185
Determine the best order size.
Question 14 What is the effect on order quantity when the demand increases by four fold in
basic order point inventory system and other factors remain unchanged? Explain.
Question 15 A unit manufactures 50,000 bottles of tomato ketchup in a year. The factory cost
per bottle is Rs. 6, The set-up cost per production run is estimated to be Rs.90 and the carrying
cost on finished goods inventory are 20% of the cost per annum. Production rate is 600 bottles
per day and sales are expected at 150 bottles/day.
(i) Derive an expression for lot size that will give minimum cost.
(ii) What is optimum lot size?
(iii) What is the number of runs required per year?
(iv) What will be the total cost per year if the number of runs has to be an integer?
Question 16. What are the advantages and disadvantages of having excess inventories ? What
are the inventory policies for A, B and C class items?
Question 17 Deduce an expression for economic order quantity and clearly state the
assumptions made in derivation. The rate of use of a particular raw material from stores is 20
units/year. The cost of placing and receiving an order is Rs. 40. The cost of each unit is Rs. 100
The cost of carrying inventory in percent per year is 0.16 and it depends on the average stock.
Determine the EOQ. If the lead time is 3 months, calculate the reorder point.
Question 18 A company consumes 75000 pcs of electrodes yearly.
Following costs are involved.
Cost per electrode= Rs. 5.50
Procurement cost per lot= Rs. 120
Interest of inventory carrying cost=16%
Calculate the Economic Order Quantity and also find the number of orders in a year. Derive
the expressions used.
Find the interval of time between the orders if the number of working days in a year to be 280
days.
Question 19 Define Economic Order Quantity (EOQ). How EOQ is determined? A company
buys 80,000 containers per year. The following costs are applicable:
P(cost per unit)=Rs 12 per container
O(cost per order)=Rs 2400/-
H(Holding Cost)=Rs. 3 Per container per year
I(Interest Rate)=15% per annum including charges for insurance and taxes.
One warehouse is used to hold exclusively these products. Calculate the economic order
quantity and annual stocking cost.
Question 20 The Demand for an Item in a company is 18000 units per year. The company can
produce these items at the rate of 3000 units per month. The cost one set-up is Rs 500. The
holding cost is Rs. 0.15 per unit per month. The Shortage cost of one unit is Rs. 20 per year.
Determine:
(i) Economic Production Quantity
(ii) Number of Shortages Permitted
(iii) The manufacturing time; and
(iv) Tune between set-ups and maximum inventory level.

Question 21 What is an Inventory? Explain the salient features of the following inventory
models:
(i) Deterministic Models
(ii) Probabilistic Models
(iii)Models under Uncertainty
In a Deterministic model the ordering cost is Rs.4500/order. The cost of each item is Rs. 2500
and carrying cost is 10% per year. If the annual requirement is 10,000 units determine
Economic Order Quantity (EOQ). If the inventory carrying cost decreases by 10% and ordering
cost increases by 10% determine the % change in EOQ. What do you infer?
Question 22 A materials manager had recently attended a short training programme on
materials management. He thought of applying some of the optimization concepts and that he
had learnt. He picked on one item having code BV 1960 which was essentially a brass valve.
From the current records, he found that the average annual demand was for 10,000 valves. The
accounting information revealed that the carrying cost was Rs. 0.40 per valve per year, whereas
the ordering cost was Rs 5.50 per order. The current policy adopted in the company was to
order for 400 valves at a time. Is this an Optimal Policy? What would be the annual saving if
EOQ concept was applied?
Question 23 A seasonal fashion item is to be orders. The acquisition cost of Rs 300 and the
selling price is Rs 450. If the salvage value after the season is Rs 150, What should be the order
quantity? The Probability of the demand occurring is known as under:
Demand Items 100 110 120 130 140 150
Probability 0.1 0.2 0.2 0.3 0.1 0.1
Question 24 Explain in detail about Manufacturing Resource Planning (MRP II) and
Enterprise Resource Planning (ERP)