0 ratings0% found this document useful (0 votes) 30 views2 pages2011
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content,
claim it here.
Available Formats
Download as PDF or read online on Scribd
INDIAN INSTITUTE OF TECHNOLOGY, KHARAGPUR
Department of Industrial Engineering and Management
‘Mid Autumn Semester Examination, 2011
Fourth Year B.Tech.(H)/Dual Degree in IM, ME and EX
Subject Number: IM31004 Subject Name: Management of Inventory Systems
Fall Marks: 60 Time: 2 Hours
Date, Time, and Venue of Examination: 23.09.2011, 14:00-16:00 Hours, $-301
‘Number of Students Appearing in the Examination: 45,
Tustructions : 1. Attempt all questions.
2. Maximum marks are shown against each question.
3. Answers should be short, and to the point.
4, Statistical tables may be used wherever required,
Q.1 (a) In the context of inventory control, ‘exact’ analysis is usually recommended
for P-system. Why? State the analytical approach for such an analysis. State
also two main limitations of this analysis. (43+
(b) What is (i) inventory tumover and (ii) Tehebycheff inequality? State the ways
by which inventory turnover can be increased. State two specific uses of
Tehebycheff inequality in inventory control. G+1+1+))
(© Cite two examples each of static and dynamic inventory problem under
uncertainty. Compare and contrast (i) Sl, and SL, and (ji) V-E-D and F-S-N
analyses. (1414242)
Q.2 (a) Derive the expression of safety stock in each of the following situations:
@ — Qsystem, fixed out-of-stock cost, safety stock remains unused. (3)
(ii) P-system, variable out-of-stock cost, safety stock used. Oy
(b) Under what condition, backordering is allowed and hence, may be planned in
advance? Derive the expressions of optimal backorder and order quantities
under dynamic problem under certainty. 2+6
Q.3 (a) Distinguish between (15x3=45)
(i) working stock and average stock
Gi) safety stock and excess stock
Gi) opportunity cost and lost sales cost
(b) A company buys 2500 units of an item per annum. The annual unit inventory
carrying cost is estimated at 20% and the ordering cost at Rs 10 per order
placed. The price quoted by the suppler is Re | per unit subject to discounts
at 5% for orders of 1,000 to 1,999 and 7% for orders of 2,000 or more. Is it
‘worthwhile increasing the order'size to avail of the discount order? (4.5) (© Daily demand for a food item at a fast food outlet is as follows: (3 +3)
Daily Demand | Probability
350 — 449 020
450549) 0.50 |
550-649 030
‘What should be the reorder point with a lead time of 1 day and service level
per order cycle of 859%? What should be the reorder point with a lead time of 3
days and a service level of 90%?
Q4 (a) What is the optimal policy curve? How do you determine this? How do you
use it in inventory control? (+242)
(®) In what situation Wald’s criterion may be used for decision making in
inventory control? @Q)
(©) Prove that for lost sales case with stockout cost per outage, +4)
@ — {BY{1—P (M>B)]=HOGR for Q-system
Gi) REVI -P (MEE) =HT/G for P-system
(notations used have their usual meaning)
