Name of the student: Aakash Gupta

Roll no.: 25-1019

Reg no.: 25-1019
Specialization: Marketing
Batch: 2020-22
Institute: BIMHRD
Semester: 1
Subject Name: Operations Management
Assignment no.: 3
Submission Date: 25 Nov 2020
Total no. of pages written:7

Q1) Complete the following MRP Sheet . Assume One week of lead time of the
organisation with the Customer and One week of lead time of the Supplier with the
organisation.

Ans)
Heading Week Number
 1 2 3 4 5 6

Gross Requirement 100 200 150 100 200 200

Scheduled Receipts 120 100 150

On Hand 75

Allocated Inventory 25

Nett Requirements 50 200 30 0 50 200

Planned Order Receipt 50 200 30 0 50 200

Planned Order Release 50 200 30 0 50 200

Q2) A service outlet for an automobile company buys consumable spares from an OEM.
Their quarterly purchases for the said item are 3000 nos. Each item costs Rs. 200 . The
ordering costs are Rs. 600 per order and the inventory carrying costs per item are 10%
of the purchase price .
Compute EOQ and the total minimum cost based on the EOQ.
Ans)
Demand = 3000 which is quarterly, therefore for annually , 3000*4 = 12000
Cost of placing one order (Co) = 600
Inventory carrying cost (Cc) = 10% of 200 = 20

EOQ = √ 2 CoD ÷ Cc
= √ 2 * 600 * 12000 / 20
= √ 14400000 / 20
= √ 720000
= 848.52

Total minimum cost = CoD / EOQ + Cc (EOQ / 2) + P * D

= 600 * 12000 / 848.52 + 20 (848.52 / 2) + 200 * 12000
= 7200000 / 848.52 + 16970.4 / 2 + 2400000
= 8485.36 + 8485.2 + 2400000
= 2416970.56

Q3) Compute which method of sequencing will be the best for the following data : F
CFS , LCFS and SPT.

Ans)
FCFS
Jobs Processing Due date Flow time Delay
time
A 12 14 12 0
B 10 12 22 10
C 8 9 30 21
D 6 8 36 28
E 13 10 49 39
Total flow time Total delay = 98
= 149

Average flow time = 149 ÷ 5 = 29.8

Average delay = 98 ÷ 5 = 19.6

LCFS
Jobs Processing Due date Flow time Delay
time
E 13 10 13 3
D 6 8 19 11
C 8 9 27 18
B 10 12 37 25
 A 12 14 49 35
Total flow time Total delay = 92
= 145
Average flow time = 145 ÷ 5 = 29
Average delay = 18.4

SPT
Jobs Processing Due date Flow time Delay
time
D 6 8 6 0
C 8 9 14 5
B 10 12 24 12
A 12 14 36 22
E 13 10 49 39
Total flow time Total delay = 78
= 129

Average flow time = 129 ÷ 5 = 25.8

Average delay = 78 ÷ 5 = 15.6

From the above method sequencing and by comparing them, we can observe following
values:
FCFS: 29.8 , 19.6
LCFS: 29 , 18.4
SPT: 25.8 , 15.6
Hence, SPT have lowest avg flow time and avg delay time therefore we will choose this
method.

Q4) Use Johnson's Rule to determine the best sequence and compute the total time
taken to finish all jobs.
Ans)
Job 1 2 3 4 5
Machine A 8 10 6 7 11
Machine B 5 9 2 3 4
Machine C 9 12 8 6 10

1st sequence from Machine A and Machine C 3 1 2 5 4

Timing according to 1st sequence i.e. 3 1 2 5 4 :

3 1 2 5 4
Machine A 6 14 24 35 42
Machine B 8 19 33 39 45
Machine C 16 28 45 55 61

For 2nd sequence we will do:

1 2 3 4 5
MA + MB 13 19 8 10 15
MB + MC 14 21 10 9 14

From above table we get 2nd sequence as: 3 1 2 5 4

Hence both sequences are same therefore, we will get same timing from both sequences.

Q5) Do an ABC Analysis for the following data and draw the necessary diagram on a
Graph Sheet.
Ans) ABC Analysis:
Item no. Unit Price Annual Volume * Value
Quantity
101 0.42 1200 504
102 17 1550 26350
103 154 500 77000
104 90 1000 90000
105 42.86 350 15001
106 60 2000 120000
107 12.50 1000 12500
108 0.60 250 150
109 8.50 100 850
110 14.17 600 8502

 Arranging in descending order:

Item no. V*V % of total Cumulative % Classification
106 120000 34.20 34.20 A
104 90000 25.66 59.86 A
103 77000 21.94 81.8 B
102 26350 7.51 89.31 B
105 15001 4.28 93.59 C
107 12500 3.57 97.16 C
110 8502 2.42 99.58 C
109 850 0.24 99.82 C
101 504 0.14 99.96 C
108 150 0.04 100 C