Register Number: 7152

Total No. of Pages: 2

Name of the Candidate:

P.G.DIPLOMA EXAMINATION – 2012

(MATERIALS MANAGEMENT)

(PAPER-VI)

160. INVENTORY MANAGEMENT

December) Maximum: 100 Marks (Time: 3 Hours

SECTION-A

Answer any THREE Questions(3×20=60)

All questions carry equal marks

/ a)Explain in detail the different types of inventory. (15)
b)What are the methods of solution in inventory models? (5)
/ a)Give the definition and need for inventory. (15)
b)What are the different models in forecasting? (5)
/ Compare and contrast the approaches of (i) Wald (ii) Hurwicvz (iii) Savage and (iv) Laplace to solve problems involving uncertainty. (20)
/ a)Explain the comparison of Q and P system. (10)
b)Discuss the MRP logic Bill of materials (10)
/ a)Write short notes on (15)
i)ABC analysis
ii)VED analysis
iii)Combination of ABC and VED analysis.
b)The probability of the demand of spares in a textile unit is observed to be
No. of spares required / Probability
0 / 0.05
1 / 0.15
2 / 0.30
3 / 0.25
4 / 0.15
5 / 0.05
6 / 0.05
The cost of stock-out, for lack of a spare, is computed to be `.5000. The price of spares is `.1000 each. The salvage value of the spare part is estimated to be almost nil.
What is the optimal number of spares to be stocked? (5)
/ Explain briefly the classification of spares for stocking policy analysis. (20)
SECTION-B
Answer any TWO FULL Questions(2×20=40)
All questions carry equal marks
/ a)A company can produce sub-components at a rate of 300 per day, and it uses these sub-components at a rate of `.12500 per year (of 250 working days). Holding costs are `.2 per item per year, and setup costs are `.30 per order. Find what percentage of time will the inventory systems be operating in a pure consumption mode. (10)
b)A newspaper boy buys papers for 5 paise each and sells them for 6 paise each. He cannot return unsold news papers. Daily demand R for newspapers follows the distribution.
R / 10 / 11 / 12 / 13 / 14 / 15 / 16
PR / 0.05 / 0.15 / 0.40 / 0.20 / 0.10 / 0.05 / 0.05
If each day’s demand is independent of the previous day’s how many papers should be ordered each day? (10)
/ Consider the following data and work out the inventory under Q and P systems.
Annual avg. demand =20000 units
Std. Deviation of demand per week = 50 units
Unit price =`.10
Ordering cost =`.100
Inventory carrying cost =20%
Avg.lead time = 4 weeks
Maximum delay = 3 weeks
Probability of delay = 0.31
Service level=95% (20)
/ a)Given in table below the number of admissions at a General Hospital over the past ten weeks.The administration would like to predict the number of admissions for this coming week, also find the forecasting error. Use single exponential smoothing method. Assume α=0.5. (10)
Week number / Admissions
1 / 22
2 / 21
3 / 25
4 / 27
5 / 35
6 / 29
7 / 33
8 / 37
9 / 41
10 / 37_
307
b)A firm has a normally distributed forecast of demand with MAD=60 units during the fixed lead time of 1 week. It desires a service level which limits stockouts to one order cycle per year.
(i)How much safety stock should be carried?
(ii)If DLT averages 500 units, what is the appropriate order point? (10)
/ What are the elements of inventory in Evaluation study? (20)

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