1. List and explain various pure strategies and mixed strategies 2.

Distinguish between aggregate planning and master production schedule. 3. Beta associates produces accounting machine that have a seasonal demand pattern. We are required to plan for the optimum production rates and inventory levels for the next four quarter periods. The available production capacities during regular time and overtime, as well as other cost data are as follows:
Period 1 2 3 4 Regular time 1200 900 1000 700 capacity and demand in units Overtime Subcontract 150 800 200 800 350 800 350 800 Demand 1200 1100 1800 1500

Available initial inventory = 110 units, Desired final inventory = 140 units RT cost/unit = Rs 100, OT cost/ unit = Rs 125 and SC cost /unit = Rs 145 Inventory cost/ unit / period = Rs 15, the cost of unused capacity = `Rs 40/ unit (a) Formulate the problem as a transportation model (b) Solve the model and infer the results.

4. A company produces calculators and has forecast demand over the next four quarters as shown below. Each quarter has 60 working days.
quarter units 1 2000 2 1500 3 1700 4 2000

The company maintains a constant work force of 40 employees, and there are no subcontractors available who can meet its quality standards. The company can, however go on overtime if necessary and encourage customers to back-order calculators. Production and cost data are as follows Production capacity: Initial inventory: 400 units Regular time hours = 40 employees x (60 days/quarter) x (8 hr/day). Overtime hours = 40 employees x (60 days/quarter) x (4 hr/day). Standard labour hours/unit = 15 hr. Labour cost: RT cost = Rs 10/hr, OT cost = Rs 15/hr

Material and overhead (regular time) = Rs 100/unit Material and overhead (overtime) = Rs60/unit Cost of unutilized capacity during regular time = Rs 60/unit Back ordering cost Rs 5/unit/period Inventory carrying cost = Rs 10/unit/period. Formulate this problem as a transportation problem and solve.

5. A firm producing Hand trolley has the following Master production schedule.
Week Demand 1 200 2 3 4 240 5 6 240 7 8 220

Each hand trolley has a bin, two wheel assemblies, two handle bars and a mounting base. Each wheel assembly has a wheel and two bearings. Order quantities, lead times and inventories on hand at the beginning of period 1 are shown below
Part Hand trolley Bin Wheel assemblies Handle bars Mounting base Wheel Bearing Order quantity 350 400 800 850 250 600 1500 Lead time (week) 1 2 2 2 1 2 2 Inventory on hand 220 250 120 105 250 300 200

A shipment of 800 wheel assemblies is already scheduled to be received at the beginning of week 2. Also another shipment of 250 mounting base is scheduled to be received at the beginning of week 3. Complete the material requirements plan for the bin, wheel assemblies, handle bars, mounting base, wheel and bearing and show what quantities of orders must be released and when they must be released in order to satisfy the MPS.

6. What are the three major inputs for an MRP system? Explain 7. A company makes Q model from components R, S and T. Component R is made from two units component X and one unit component of Y. Component T is made from one unit of component Y and three units of component Z. i) Draw the product tree structure and bill of material. ii) Using the given information calculate the gross requirements if the company plans to build 100 units of its Q model if you have these inventories: 150 units of component T and 200 units of component R.

8. Explain the following i) MRP ii) CRP iii) BOM iv) MRP logic v) Time phasing 9 The forecast for a group of items manufactured in a firm is shown below. Quarter Demand 1 420 2 370 3 620 4 720 5 600 6 200 7 300 8 400

The firm estimates that it costs Rs. 225 per unit to increase the production rate, Rs. 275 per unit to decrease the production rate, Rs. 80 per unit per quarter to carry the items on inventory and Rs. 150 per unit if subcontracted. Given these costs, evaluate the following mixed strategy. The company decides to maintain a constant production rate of 250 units per quarter and permit 20% overtime when the demand exceeds the production rate. The incremental cost of overtime is Rs. 25 per hour. It plans to meet the excess demand by hiring and firing of workers. (10 marks)

10 A company manufactures Iron box. The MPS of the final assembly is as shown below. Month Projected requirements 1 __ 2 3500 3 3000 4 4500 5 _ 6 1000 7 4000 8 5500

The initial stock on hand is 1150 units. The carrying cost is Rs. 2.5 per/month and the lead time is one month. The ordering cost per order is Rs. 6000. Develop an EOQ solution and calculate the total relevant costs