Total No.

of Pages: 2 Register Number: Name of the Candidate:

6846
(APPLIED OPERATIONS RESEARCH)
(PAPER III)

P.G. DIPLOMA EXAMINATION - 2010

130. INVENTORY, QUEUING AND SIMULATION MODELS

December) Maximum: 100 Marks Attempt any FIVE questions. Use of Statistical Tables are permitted. 100) Written 1. (a) Describe the formula of optimum lot size for a manufacturing model with no shortage (demand rate uniform, production rate infinite). (10) (b) What is queuing theory? (5) (c) Explain the terms queue discipline and system capacity. (5) 2. (a) Write the step by step procedure for ABC analysis. (7) (b) Explain the limitations of ABC analysis. (3) c) Briefly discuss the application of queuing theory in industrial management. (10) 3. (a) At a railway station, only one train is handled at a time. The railway yard is sufficient only for 2 trains to wait while the other is given signal to leave the station. Trains arrive at the station at an average rate of 6 per hour and the railway station can handle them on an average 12 per hour, Assuming poisson arrivals and exponential service distribution. Find the steady state probability of various number of trains in the system. Also find the average waiting time of a new train coming into the yard. (10) (b) A company uses annually 48,000 units of raw material costing rupees 1.2 per unit. Placing each order costs rupees 45 and inventory carrying cost are 15% per year of the average inventory values find i)EOQ ii)Suppose that the company follows the EOQ policy and operates 300 days a year, the procurement time being 12 days and the safety stock being 500 units, find ROL, Maximum, Minimum and average inventories. (10) 4. Explain the following terms a) Shortage cost b) Replenishment cost c) Lead time d) Re-order level (5) (5) (5) (5) (Time: 3 Hours (5 20 =

5. (a) A shop keeper has a uniform demand of an item at the rate of 600 items per year. They buy from a supplier at a cost of rupees 8 per item and the cost of ordering is rupees 12 each time. If the stock holding costs are 20% per year of stock value, how frequently should he replenish his stocks and what is the optimal order quantity. (10) (b) What are the different forms of inventory? (5) (c) Explain the various types of inventory. (5) 6. A supermarket has two girls ringing up sales at the counters. If the service time for each customer is exponential with mean 4 minutes and if the people arrive in a Poisson fashion at the rate of 10 per hour a) What is the probability of having to wait for service? (6) b) What is the expected percentage of idle time for each girl? (6) c) If a customer has to wait, what is the expected length of his waiting time? (8) 7. (a) What is the difference between MRP-I and MRP-II. (b) Discuss in detail spares inventory management. (10) (10)

8. (a) List the limitations of simulation technique. (3) (b) What is a pseudo random number? (3) (c) What are the test used to ensure uniformity and independence of random number? (3) (d) Explain in detail Monte Carlo method. (3) (e) The demand per day for a particular item has the following probability distribution Demand per day 2 3 4 5 Probability 0.15 0.3 0.45 0.1 Simulate the demand for the ensuing 15 days. (8) %%%%%%