Assignment -1

INSUSTRIAL ENGINEERING AND OPERATIONAL RESEARCH

Due Date for submission: 18/02/2020

Q-1 A firm uses simple exponential smoothing with α=0.3 to forecast demand.The
forecast for the first week of January was 500 units,whereas actual demand turned out
to be 450 units.

(a) Forecast the demand for the second week of January.

(b) Assume that the actual demand during the second week of January turned out to be
550 units.Forecast the demand up to february third week,assuming the subsequent
demands as 475,450,470,525 and 470 units.

Q-2 The Super Snow paint shop has recorded the demand for a particular colour
during the past 6 weeks as shown below.
WEEK DEMAND IN LITRE
1st Week May 19
2 Week May
nd
17
3rd Week May 22
4 Week May
th
27
1st Week June 29
2 Week June
nd
33

Q-3 The sales particular of a company for 13 years of operation is furnished below.
Year Lumber Sales
1 96
2 116
3 119
4 127
5 146
6 145
7 153
8 158
9 160
10 165
11 177
12 190
13 205

(a) .Fit a simple regression for the above data.

(b) Forecast the sales for the 14th year of operation.
Q-4 Potential locations A,B,C have the cost structures as shown below for producing
a product expected to sell Rs3250 per unit.Find the most economical location for an
expected volume of 2750 units per year.

SITE FINAL COST/YEAR (Rs) VARIABLE COST/UNIT

(Rs)
A 65,00,000 1,200
B 75,00,000 560
C 55,00,000 4,250

Q-5 Consider the following assembly network relationship of a product.The number

of shirts per day is one and the number of working hours per shift is 8.The company
aims to produce 40 units of the product per shift.
Group the activities into work stations using Rank Positional Weight Method and
compute Balancing Efficiency.
OPERATION NUMBER IMMEDIATE DURATION
PRECEDING TASKS (MIN)
1 - 8
2 1 3
3 1 2
4 1 4
5 1 7
6 3,7 4
7 2 5
8 4,5 6
9 2,6 8
10 7,8,9 9
11 5 4
12 9,10 3
13 8,10,11 6
14 12,13 3

Q-6 Ram Industry needs 5400 units/year of a bought out component which will be
used in its main product.The ordering cost is Rs250 per order and the carrying cost
unit per year is Rs30.
Find
[a] Economic Order quantity.
[b] Number of orders per year.
[c] Time between successive orders.

Q-7 Alpha Industry needs 15,000 units/year of a bought out component which will be
used in its main product.The ordering cost is Rs125 per order and the carrying cost
per unit year is 20 per cent of the purchase price per unit which is Rs75.
Find
[a] Economic Order Quantity.
[b] Number of orders per year.
[c] Time between successive orders.
Q-8 An Automobile factory manufactures a particular type of gear within the
factory.This gear is used in the final assembly.The particulars of this gear are
presented below.
Demand rate,r=14,000units/year
Production rate,K=35,000units/year
Set-up cost,Co=Rs500 per set-up
Carrying cost Cc=Rs15/unit/year.
Find the EBQ and cycle time.
 Assignment -2
INSUSTRIAL ENGINEERING AND OPERATIONAL RESEARCH

Due Date for submission: 21/02/2020

Q-1 In a firm,the distribution of demand of an item during a constant lead time

follows normal distribution.The standard deviation of the demand of the item is 300
units.The firm wants to have a service level of 95 per cent.
[a] How much safety stock should be carried for the item?
[b] If the demand during lead time averages 2000 units,what is the appropriate
recorder level?

Q-2 Annual demand for an item is 5400 units.Ordering cost is Rs600 per
order.Inventory carrying cost is 30 per cent of the purchase price per unit per year.The
price breaks are as shown below.
QUANTITY PRICE(Rs)
0≤Q1<2400 12
2400≤Q2<3000 10
3000≤Q3 8

[a] Find the optimal order size.

[b] If the order cost is changed to Rs300 per order,find the optimal order size.

Q-3 The stores of a repair shop has 10 items whose details are shown in the following
table.Apply ABC analysis to the stores and identify A class,B Class and C Class
items.
COMPPONENT CODE PRICE/UNIT UNITS/YEAR
(Rs)
C01 110 125
C02 3000 40
C03 225 310
C04 60 720
C05 310 425
C06 7000 525
C07 500 900
C08 1000 90
C09 7000 510
C10 800 600
Q-4 Consider the manufacture of a toy. The master production schedule to
manufacture the toy is given below.
WEEK DEMAND
1 200
2 -
3 100
4 175
5 300
6 200
7 -
8 250

The Bill of Material structure is given below in the following figure.

The details of Bill of Materials along with economic order quantity and stock on hand
for the final product and subassemblies are shown in the following table.

PART ORDER NO.OF UNITS LEAD TIME STOCK ON

REQIRED QUANTITY (WEEK) HAND
A 350 1 2 200
B 450 1 1 400
C 400 1 1 375
D 375 1 1 250
E 400 1 2 425

Complete the material requirements plan for the main product A as well as for the
subassemblies B,C,D AND E.
Q-5 Consider the following 2 machines and 6 jobs flow shop problem.

JOB MACHINE 1 MACHINE 2

1 5 7
2 10 8
3 8 13
4 9 7
5 6 11
6 12 10
Obtain the optimal schedule and the corresponding makespan for the above problem.

Q-6 Consider the following 3 machines and 5 jobs flow shop problem.Check whether
Johnson’s rule can be extended to this problem.If so,what is the optimal schedule and
the corresponding makespan?

JOB MACHINE 1 MACHINE 2 MACHINE 3

1 11
2 13
3 15
4 12
5 20
10 12
8 20
6 15
7 19
9 7