R.V.R. & J.C.

COLLEGE OF ENGINEERING, GUNTUR-522 019

IV/IV B.Tech., (ME) ASSIGNMENT TEST # II Time: 45 Min.

2019-2020 (1st Semester) Max.Marks: 12

ME 405 – OPERATIONS MANAGEMENT

1 What is Materials management? Explain its significance and role in the CO5
present scenario of an organization.
2 Explain in detail Master Scheduling formulation along with required inputs & CO3
outputs.
3 Derive the expression for E.O.Q for infinite rate of replenishment & shortages CO5
allowed.
4 (a) Manufacturer purchases items in lots of 800 units, which is a four months CO5
requirement. The total cost per unit is Rs.100/- and the ordering cost is
Rs.120/- per batch order. The inventory carrying cost is estimated as 20% of
the average inventory investment.
(i) Determine the annual variable cost managing the inventory.
(ii) How much saving can be obtained from the EOQ Purchases?
(b) Find the Optimal Order quantity for a product when the annual demand
for the product is 500 units, the cost of storage per unit per year is 10% of the
unit cost and ordering cost per order is Rs.180/-. The unit costs are given
below:-
Quantity (units) Unit cost (Rs)
0<Q1<500 25.00
500 ≤ Q2< 1500 24.80
1500 ≤ Q3< 3000 24.60
3000 ≤ Q4 24.40

5 a. Distinguish between Pert & CPM. CO6

b. The following table gives the data for the activities of small project.

Job 1-2 1-3 2-4 2-6 3-4 3-5 4-5 5-6

T0 1 5 3 1 8 2 5 2
Tm 4 10 3 4 15 4 5 5
Tp 7 17 3 7 26 8 5 8

(i) Draw the network and find the expected project completion time.
(ii) What is the probability that it would take 5 days more than the
expected duration?
(iii) Find the project completion time, which will have 95%
confidence.

6 Discuss the need & importance of supply chain in the present Scenario. CO7
Explain the steps in creating a supply chain in an enterprise.