Name: ADITYA KATARA

Student ID: PGGCe02200306

Duration: 90 minutes
Exam: Operations Management - II
Instructions:
are
" The exam is open book-open notes. Calculators are allowed. No other d1gital devices
allowed.
Any act of academic dishonesty will be stricly penalized.
of the exam.
Put your name on the top of the question paper on all the pages at the start
Formulas and tables are attached with the question paper.
additional sheets
Additional sheets may be used if nceded. Please write your name on all the
used and submit them along with the paper.
There are multiple versions of the paper.
with the answer sheets.
The question paper must be attached and returned along
Question 1 [10 Marks]:
parking garage contains 400 parking
You are the manager of a luxury apartment building whose metered spots. Residents may
spots, some of which of which are dedicated while the rest are
choose to purchase a dedicated parking spot forchoose$60,000 (1 parking spot) for 3years (only 3-year
contracts are available). Alternatively, they may metered spots at $4 per hour of parking, if
available. The number of drivers wishing to park in metered spots for an hour at any time10.during
Your
mean of 80 and a standard deviation of
the 24 hours has a normal distribution with a
and metered spots. The dedicated spots can
goal is to allocate the 400 spots between dedicated demand for dedicated spots is larger than 400,
only be used by the residents with the contract.hatThemetered cars are parked exactly for an hour with
and number of days in a year is 365. Assune 01:00, 02:00 ... 23:00.
arrivals and departures happening at discrete times, ie., 00:00,
Calculate the following:
metered parking to maximize your overall
[3 Marks] Find the number of spots to designate for
expected revenue?
that will remain empty in any given hour?
b. (3 Marks] What is the cxpected number of slotsmetered parking will be refused parking in any
c. [2 Marks] How many customers looking for
given hour?
be generated in 3 years?
d. (2 Marks] What is the expected revenue that will
Question 2 (8 Marks]:
polcy for an LED that is used in TV remotes. The
A particular comnpany uses a (Q, R) ordering is 104,00. The ordering cost is $10, lead
cost of theitem is $0.15 per unit, and the annual demand
year. Assume 52 weeks in a year. The demand
time is 4 weeks, and the cost of capital is 30% per
distribution:
during the lead time follows the following
Probability Demand

0. 2000
0.2 4000
0.3 6500
0.2 12000
0.15 13000
0.05 14000

Answer the following questions: you hold?

a. (3 Marks] For a CSL of 80%, how much safety stock will optimal ordering policy?
inventory level based on the
b. (2 Marks] What is the average corresponding to CSL of 80%?
c. 3 Marks) What is the fill rate
 Name: A\A KATARA
Student ID: paRC2022O0306

Question 3 [10 Marks]: for which is highly

with gardening tools, the demandovercome
Divine Tree Inc. is a company dealing production planning to the obstacle
seasonal. Divine Trce has decided to use aggregate seasonality are:
of seasonal demand. The options it has for handling the
adding workers during the pcak season and firing them later
subcontracting out some of the work
building inventory during the slow months
to customers
" building up a backlog of orders that will be delivered late

The demand for the next 4 months and the relevant data are given below.
Item Cost
Material cost S1O/unit
Inventory holding cost $Z/unit/month.
stockoutbacklog cost $S/unit/month
Demand Hiring and training costs S300'worker
Month Fring cost SS0'worker
Forecast
Labour hours required 4 hours/unit
January 1,600
February 3,000 Regular time cost $4/hour
March 3,200 Overtime-eest S6/hour X
4,000 Gest ofsubcontraeting $30/unit
April
Cost of subcontracing ($30/unit) includes the cost of material
" Starting inventory in January = 1,000 tools
" Safety stock required =25% of monthly demand
Workforce at the beginning of January =80mployees
Working days = 20 days/month
Working hours = 8 hours a day and any remaining hours performed on overtime
. Machine capacity does not limit the capacity of production operation, and capacity of
production operation is determined pimarily by the total labor hours worked.
All stockouts are backlogged and supplied from the following month's production.
" Inventory costs are incurred on the ending inventory in the month.

Develop an aggregate production plan, maintaining a constant workforce level required to meet
the average monthly requirement without using any overtime or subcontracting.

Question 4 [8 Marks]:
The output of a Master Producion Schedule (MPs) suggests producing 800 units of item Xin
weck 4 and 1200 units of it in week 8. The bill of material of Xis as shown below:
X

A (1) B (2)

The inventory record suggests the following:

 Name:
Product/Item
Lead Time (weeks) X Student ID.AOlTyA
PaP KATApA
ad thc
Scheduled order
receipts
1
150 (start of
A
150 (start of
20220030
there is planned order releases
2
week 2) 300 (start of
week 3)
on-hand inventory of
of any ofitems
the
A and B
if the week 1)
items. ordering polcy is
lot-for-lot Currenty,