Industrial Engineering PDF

CHAPTER 11
INDUSTRIAL ENGINEERING
YEAR 2012 ONE MARK
MCQ 11.1 Which one of the following is NOT a decision taken during the aggregate
production planning stage ?
(A) Scheduling of machines
(B) Amount of labour to be committed
(C) Rate at which production should happen
(D) Inventory to be carried forward
YEAR 2012 TWO MARKS
Common Data For Q.2 and Q.3

For a particular project, eight activities are to be carried out. Their
relationships with other activities and expected durations are mentioned in
the table below.
Activity Predecessors Durations (days)

a - 3
b a 4
c a 5
d a 4
e b 2
f d 9
g c, e 6
h f, g 2
MCQ 11.2 The critical path for the project is

(A) a - b - e - g - h (B) a - c - g - h
(C) a - d - f - h (D) a - b - c - f - h
MCQ 11.3 If the duration of activity f alone is changed from 9 to 10 days, then the
(A) critical path remains the same and the total duration to complete the
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project changes to 19 days.

(B) critical path and the total duration to complete the project remains the
same.
(C) critical path changes but the total duration to complete the project
remains the same.
(D) critical path changes and the total duration to complete the project
changes to 17 days.
YEAR 2011 ONE MARK
MCQ 11.4 Cars arrive at a service station according to Poissons distribution with a
mean rate of 5 per hour. The service time per car is exponential with a mean
of 10 minutes. At steady state, the average waiting time in the queue is
(A) 10 minutes (B) 20 minutes
(C) 25 minutes (D) 50 minutes
MCQ 11.5 The word kanban is most appropriately associated with

(A) economic order quantity
(B) just-in-time production
(C) capacity planning
(D) product design
YEAR 2011 TWO MARKS

One unit of product P1 requires 3 kg of resources R1 and 1 kg of resources R2
. One unit of product P2 requires 2 kg of resources R1 and 2 kg of resources
R2 . The profits per unit by selling product P1 and P2 are Rs. 2000 and
Rs. 3000 respectively. The manufacturer has 90 kg of resources R1 and
100 kg of resources R2 .
MCQ 11.6 The unit worth of resources R2 , i.e., dual price of resources R2 in Rs. per
kg is
(A) 0 (B) 1350
(C) 1500 (D) 2000
MCQ 11.7 The manufacturer can make a maximum profit of Rs.

(A) 60000 (B) 135000
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CHAP 11 INDUSTRIAL ENGINEERING PAGE 513
(C) 150000 (D) 200000
YEAR 2010 ONE MARK
MCQ 11.8 The demand and forecast for February are 12000 and 10275, respectively.
Using single exponential smoothening method (smoothening coefficient
= 0.25 ), forecast for the month of March is
(A) 431 (B) 9587
(C) 10706 (D) 11000
MCQ 11.9 Littles law is a relationship between

(A) stock level and lead time in an inventory system
(B) waiting time and length of the queue in a queuing system
(C) number of machines and job due dates in a scheduling problem
(D) uncertainty in the activity time and project completion time
MCQ 11.10 Vehicle manufacturing assembly line is an example of

(A) product layout (B) process layout
(C) manual layout (D) fixed layout
MCQ 11.11 Simplex method of solving linear programming problem uses

(A) all the points in the feasible region
(B) only the corner points of the feasible region
(C) intermediate points within the infeasible region
(D) only the interior points in the feasible region
YEAR 2010 TWO MARKS
MCQ 11.12 Annual demand for window frames is 10000. Each frame cost Rs. 200 and
ordering cost is Rs. 300 per order. Inventory holding cost is Rs. 40 per frame
per year. The supplier is willing of offer 2% discount if the order quantity is
1000 or more, and 4% if order quantity is 2000 or more. If the total cost is
to be minimized, the retailer should
(A) order 200 frames every time
(B) accept 2% discount
(C) accept 4% discount
(D) order Economic Order Quantity
MCQ 11.13 The project activities, precedence relationships and durations are described
in the table. The critical path of the project is

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Activity Precedence Duration (in days)

P - 3
Q - 4
R P 5
S Q 5
T R, S 7
U R, S 5
V T 2
W U 10
(A) P -R-T -V (B) Q -S -T -V
(C) P -R-U -W (D) Q -S -U -W

Four jobs are to be processed on a machine as per data listed in the table.
Job Processing time (in days) Due date

1 4 6
2 7 9
3 2 19
4 8 17
MCQ 11.14 If the Earliest Due Date (EDD) rule is used to sequence the jobs, the number
of jobs delayed is
(A) 1 (B) 2
(C) 3 (D) 4
MCQ 11.15 Using the Shortest Processing Time (SPT) rule, total tardiness is
(A) 0 (B) 2
(C) 6 (D) 8
YEAR 2009 ONE MARK
MCQ 11.16 The expected time (te) of a PERT activity in terms of optimistic time t 0 ,
pessimistic time (t p) and most likely time (tl ) is given by
to + 4tl + t p to + 4t p + tl
(A) te = (B) te =
6 6

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to + 4tl + t p to + 4t p + tl
(C) te = (D) te =
3 3
MCQ 11.17 Which of the following forecasting methods takes a fraction of forecast error
into account for the next period forecast ?
(A) simple average method
(B) moving average method
(C) weighted moving average method
(D) exponential smoothening method
YEAR 2009 TWO MARKS
MCQ 11.18 A company uses 2555 units of an item annually. Delivery lead time is 8 days.
The reorder point (in number of units) to achieve optimum inventory is
(A) 7 (B) 8
(C) 56 (D) 60
MCQ 11.19 Consider the following Linear Programming Problem (LPP):

Maximize Z = 3x1 + 2x2
Subject to x1 # 4
x2 # 6
3x1 + 2x2 # 18
x1 $ 0, x2 $ 0
(A) The LPP has a unique optimal solution
(B) The LPP is infeasible.
(C) The LPP is unbounded.
(D) The LPP has multiple optimal solutions.
MCQ 11.20 Six jobs arrived in a sequence as given below:
Jobs Processing Time (days)

I 4
II 9
III 5
IV 10
V 6
VI 8
Average flow time (in days) for the above jobs using Shortest Processing
time rule is

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(A) 20.83 (B) 23.16

(C) 125.00 (D) 139.00

Consider the following PERT network:
The optimistic time, most likely time and pessimistic time of all the activities
are given in the table below:
Activity Optimistic time Most likely time Pessimistic time

(days) (days) (days)
1-2 1 2 3
1-3 5 6 7
1-4 3 5 7
2-5 5 7 9
3-5 2 4 6
5-6 4 5 6
4-7 4 6 8
6-7 2 3 4
MCQ 11.21 The critical path duration of the network (in days) is
(A) 11 (B) 14
(C) 17 (D) 18
MCQ 11.22 The standard deviation of the critical path is

(A) 0.33 (B) 0.55
(C) 0.77 (D) 1.66
YEAR 2008 ONE MARK
MCQ 11.23 In an M/M/1 queuing system, the number of arrivals in an interval of length
T is a Poisson random variable (i.e. the probability of there being arrivals
e T (T) n
in an interval of length T is ). The probability density function
n!

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f (t) of the inter-arrival time is

t
(A) 2 ^e t h
2
(B) e 2
2

t
(C) e t (D) e

MCQ 11.24 A set of 5 jobs is to be processed on a single machine. The processing time
(in days) is given in the table below. The holding cost for each job is Rs. K
per day.
Job Processing time

P 5
Q 2
R 3
S 2
T 1
A schedule that minimizes the total inventory cost is
(A) T -S -Q -R-P (B) P -R-S -Q -T
(C) T -R-S -Q -P (D) P -Q -R-S -T
YEAR 2008 TWO MARKS
MCQ 11.25 For the standard transportation linear programme with m source and n
destinations and total supply equaling total demand, an optimal solution
(lowest cost) with the smallest number of non-zero xij values (amounts from
source i to destination j ) is desired. The best upper bound for this number
is
(A) mn (B) 2 (m + n)
(C) m + n (D) m + n 1
MCQ 11.26 A moving average system is used for forecasting weekly demand F1 (t) and
F2 (t) are sequences of forecasts with parameters m1 and m2 , respectively,
where m1 and m2 (m1 > m2) denote the numbers of weeks over which the
moving averages are taken. The actual demand shows a step increase from
d1 to d2 at a certain time. Subsequently,
(A) neither F1 (t) nor F2 (t) will catch up with the value d2
(B) both sequences F1 (t) and F2 (t) will reach d2 in the same period
(C) F1 (t) will attain the value d2 before F2 (t)
(D) F2 (t) will attain the value d2 before F1 (t)
MCQ 11.27 For the network below, the objective is to find the length of the shortest
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path from node P to node G .

Let dij be the length of directed arc from node i to node j .
Let S j be the length of the shortest path from P to node j . Which of the
following equations can be used to find SG ?
(A) SG = Min {SQ, SR} (B) SG = Min {SQ dQG , SR dRG }

(C) SG = Min {SQ + dQG , SR + dRG } (D) SG = Min {dQG , dRG }
MCQ 11.28 The product structure of an assembly P is shown in the figure.
Estimated demand for end product P is as follows
Week 1 2 3 4 5 6
Demand 1000 1000 1000 1000 1200 1200
ignore lead times for assembly and sub-assembly. Production capacity (per
week) for component R is the bottleneck operation. Starting with zero
inventory, the smallest capacity that will ensure a feasible production plan
up to week 6 is
(A) 1000 (B) 1200
(C) 2200 (D) 2400

Consider the Linear Programme (LP)
Max 4x + 6y
Subject to 3x + 2y # 6
2x + 3y # 6
x, y $ 0

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MCQ 11.29 After introducing slack variables s and t , the initial basic feasible solution is
represented by the table below (basic variables are s = 6 and t = 6 , and the
objective function value is 0)
4 6 0 0 0
s 3 2 1 0 6
t 2 3 0 1 6
x y s t RHS
After some simplex iterations, the following table is obtained
0 0 0 2 12
s 5/3 0 1 1/3 2
y 2/3 1 0 1/3 2
x y s t RHS
From this, one can conclude that
(A) the LP has a unique optimal solution
(B) the LP has an optimal solution that is not unique
(C) the LP is infeasible
(D) the LP is unbounded
MCQ 11.30 The dual for the LP in Q . 29 is

(A) Min 6u + 6v (B) Max 6u + 6v
subject to subject to
3u + 2v $ 4 3u + 2v # 4
2u + 3v $ 6 2u + 3v # 6
u, v $ 0 u, v $ 0
(C) Max 4u + 6v (D) Min 4u + 6v
subject to subject to
3u + 2v $ 6 3u + 2v # 6
2u + 3v $ 6 2u + 3v # 6
u, v $ 0 u, v $ 0
YEAR 2007 TWO MARKS
MCQ 11.31 Capacities of production of an item over 3 consecutive months in regular

time are 100, 100 and 80 and in overtime are 20, 20 and 40. The demands
over those 3 months are 90, 130 and 110. The cost of production in regular
time and overtime are respectively Rs. 20 per item and Rs. 24 per item.
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Inventory carrying cost is Rs. 2 per item per month. The levels of starting
and final inventory are nil. Backorder is not permitted. For minimum cost
of plan, the level of planned production in overtime in the third month is
(A) 40 (B) 30
(C) 20 (D) 0
MCQ 11.32 The maximum level of inventory of an item is 100 and it is achieved with
infinite replenishment rate. The inventory becomes zero over one and half
month due to consumption at a uniform rate. This cycle continues throughout
the year. Ordering cost is Rs. 100 per order and inventory carrying cost is
Rs. 10 per item per month. Annual cost (in Rs.) of the plan, neglecting
material cost, is
(A) 800 (B) 2800
(C) 4800 (D) 6800
MCQ 11.33 In a machine shop, pins of 15 mm diameter are produced at a rate of 1000
per month and the same is consumed at a rate of 500 per month. The
production and consumption continue simultaneously till the maximum
inventory is reached. Then inventory is allowed to reduced to zero due to
consumption . The lot size of production is 1000. If backlog is not allowed,
the maximum inventory level is
(A) 400 (B) 500
(C) 600 (D) 700
MCQ 11.34 The net requirements of an item over 5 consecutive weeks are 50-0-15-20-20.
The inventory carrying cost and ordering cost are Rs. 1 per item per week
and Rs. 100 per order respectively. Starting inventory is zero. Use Least
Unit Cost Technique for developing the plan. The cost of the plan (in Rs.)
is
(A) 200 (B) 250
(C) 225 (D) 260
YEAR 2006 ONE MARK
MCQ 11.35 The number of customers arriving at a railway reservation counter is Poisson
distributed with an arrival rate of eight customers per hour. The reservation
clerk at this counter takes six minutes per customer on an average with an
exponentially distributed service time. The average number of the customers
in the queue will be
(A) 3 (B) 3.2
(C) 4 (D) 4.2

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MCQ 11.36 In an MRP system, component demand is

(A) forecasted
(B) established by the master production schedule
(C) calculated by the MRP system from the master production schedule
(D) ignored
YEAR 2006 TWO MARKS
MCQ 11.37 An manufacturing shop processes sheet metal jobs, wherein each job must
pass through two machines (M1 and M 2, in that order). The processing
time (in hours) for these jobs is
Jobs
Machine
P Q R S T U
M1 15 32 8 27 11 16
M2 6 19 13 20 14 7
The optimal make-span (in-hours) of the shop is
(A) 120 (B) 115
(C) 109 (D) 79
MCQ 11.38 Consider the following data for an item.

Annual demand : 2500 units per year, Ordering cost : Rs. 100 per order,
Inventory holding rate : 25% of unit price
Price quoted by a supplier
Order quantity (units) Unit price (Rs.)

< 500 10
$ 500 9
The optimum order quantity (in units) is

(A) 447 (B) 471
(C) 500 (D) $ 600
MCQ 11.39 A firm is required to procure three items (P , Q , and R). The prices quoted
for these items (in Rs.) by suppliers S1, S 2 and S 3 are given in table. The
management policy requires that each item has to be supplied by only one
supplier and one supplier supply only one item. The minimum total cost (in
Rs.) of procurement to the firm is

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Item Suppliers
S1 S2 S3
P 110 120 130
Q 115 140 140
R 125 145 165
(A) 350 (B) 360
(C) 385 (D) 395
MCQ 11.40 A stockist wishes to optimize the number of perishable items he needs to
stock in any month in his store. The demand distribution for this perishable
item is
Demand (in units) 2 3 4 5

Probability 0.10 0.35 0.35 0.20
The stockist pays Rs. 70 for each item and he sells each at Rs. 90 . If the
stock is left unsold in any month, he can sell the item at Rs. 50 each. There
is no penalty for unfulfilled demand. To maximize the expected profit, the
optimal stock level is
(A) 5 units (B) 4 units
(C) 3 units (D) 2 units
MCQ 11.41 The table gives details of an assembly line.
Work station I II III IV V VI

Total task time at the workstation 7 9 7 10 9 6
(in minutes)
What is the line efficiency of the assembly line ?
(A) 70% (B) 75%
(C) 80% (D) 85%
MCQ 11.42 The expected completion time of the project is

(A) 238 days (B) 224 days
(C) 171 days (D) 155 days
MCQ 11.43 The standard deviation of the critical path of the project is
(A) 151 days (B) 155 days
(C) 200 days (D) 238 days

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YEAR 2005 ONE MARK
MCQ 11.44 An assembly activity is represented on an Operation Process Chart by the

symbol
(A) 4 (B) A
(C) D (D) O
MCQ 11.45 The sales of a product during the last four years were 860, 880, 870 and
890 units. The forecast for the fourth year was 876 units. If the forecast for
the fifth year, using simple exponential smoothing, is equal to the forecast
using a three period moving average, the value of the exponential smoothing
constant is
(A) 1 (B) 1
7 5
(C) 2 (D) 2
7 5
MCQ 11.46 Consider a single server queuing model with Poisson arrivals ( = 4/hour)
and exponential service ( = 4/hour). The number in the system is restricted
to a maximum of 10. The probability that a person who comes in leaves
without joining the queue is
(A) 1 (B) 1
11 10
(C) 1 (D) 1
9 2
YEAR 2005 TWO MARKS
MCQ 11.47 A component can be produced by any of the four processes I, II, III and
IV. Process I has a fixed cost of Rs. 20 and variable cost of Rs. 3 per piece.
Process II has a fixed cost Rs. 50 and variable cost of Rs. 1 per piece. Process
III has a fixed cost of Rs. 40 and variable cost of Rs. 2 per piece. Process IV
has a fixed cost of Rs. 10 and variable cost of Rs. 4 per piece. If the company
wishes to produce 100 pieces of the component, form economic point of view
it should choose
(A) Process I (B) Process II
(C) Process III (D) Process IV
MCQ 11.48 A welding operation is time-studied during which an operator was pace-rated
as 120%. The operator took, on an average, 8 minutes for producing the weld-
joint. If a total of 10% allowances are allowed for this operation. The expected
standard production rate of the weld-joint (in units per 8 hour day) is
(A) 45 (B) 50
(C) 55 (D) 60

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MCQ 11.49 The distribution of lead time demand for an item is as follows:
Lead time demand Probability

80 0.20
100 0.25
120 0.30
140 0.25
The reorder level is 1.25 times the expected value of the lead time demand.
The service level is
(A) 25% (B) 50%
(C) 75% (D) 100%
MCQ 11.50 A project has six activities ( A to F ) with respective activity duration 7, 5,
6, 6, 8, 4 days. The network has three paths A-B , C -D and E -F . All the
activities can be crashed with the same crash cost per day. The number of
activities that need to be crashed to reduce the project duration by 1 day is
(A) 1 (B) 2
(C) 3 (D) 6
MCQ 11.51 A company has two factories S1 , S2, and two warehouses D 1 , D2. The
supplies from S1 and S2 are 50 and 40 units respectively. Warehouse D 1
requires a minimum of 20 units and a maximum of 40 units. Warehouse D2
requires a minimum of 20 units and, over and above, it can take as much as
can be supplied. A balanced transportation problem is to be formulated for
the above situation. The number of supply points, the number of demand
points, and the total supply (or total demand) in the balanced transportation
problem respectively are
(A) 2, 4, 90 (B) 2, 4, 110
(C) 3, 4, 90 (D) 3, 4, 110

Consider a linear programming problem with two variables and two
constraints. The objective function is : Maximize X1 + X2 . The corner points
of the feasible region are (0, 0), (0, 2), (2, 0) and (4/3, 4/3)
MCQ 11.52 If an additional constraint X1 + X2 # 5 is added, the optimal solution is
(A) b 5 , 5 l (B) b 4 , 4 l
3 3 3 3
(C) b 5 , 5 l (D) (5, 0)
2 2

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MCQ 11.53 Let Y1 and Y2 be the decision variables of the dual and v1 and v2 be the
slack variables of the dual of the given linear programming problem. The
optimum dual variables are
(A) Y1 and Y2 (B) Y1 and v1
(C) Y1 and v2 (D) v1 and v2
YEAR 2004 ONE MARK
MCQ 11.54 In PERT analysis a critical activity has

(A) maximum Float (B) zero Float
(C) maximum Cost (D) minimum Cost
MCQ 11.55 For a product, the forecast and the actual sales for December 2002 were 25
and 20 respectively. If the exponential smoothing constant () is taken as
0.2, then forecast sales for January 2003 would be
(A) 21 (B) 23
(C) 24 (D) 27
MCQ 11.56 There are two products P and Q with the following characteristics
Product Demand (Units) Order cost Holding Cost

(Rs/order) (Rs./ unit/ year)
P 100 50 4
Q 400 50 1
The economic order quantity (EOQ) of products P and Q will be in the
ratio
(A) 1 : 1 (B) 1 : 2
(C) 1 : 4 (D) 1 : 8
YEAR 2004 TWO MARKS
MCQ 11.57 A standard machine tool and an automatic machine tool are being compared
for the production of a component. Following data refers to the two machines.
Standard Automatic
Machine Tool Machine Tool
Setup time 30 min 2 hours
Machining time per piece 22 min 5 min
Machine rate Rs. 200 per hour Rs. 800 per hour
The break even production batch size above which the automatic machine
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tool will be economical to use, will be

(A) 4 (B) 5
(C) 24 (D) 225
MCQ 11.58 A soldering operation was work-sampled over two days (16 hours) during
which an employee soldered 108 joints. Actual working time was 90% of the
total time and the performance rating was estimated to be 120 per cent.
If the contract provides allowance of 20 percent of the time available, the
standard time for the operation would be
(A) 8 min (B) 8.9 min
(C) 10 min (D) 12 min
MCQ 11.59 An electronic equipment manufacturer has decided to add a component sub-
assembly operation that can produce 80 units during a regular 8-hours shift.
This operation consist of three activities as below
Activity Standard time (min)

M. Mechanical assembly 12
E. Electric wiring 16
T. Test 3
For line balancing the number of work stations required for the activities M,
E and T would respectively be
(A) 2, 3, 1 (B) 3, 2, 1
(C) 2, 4, 2 (D) 2, 1, 3
MCQ 11.60 A maintenance service facility has Poisson arrival rates, negative exponential
service time and operates on a first come first served queue discipline.
Breakdowns occur on an average of 3 per day with a range of zero to eight.
The maintenance crew can service an average of 6 machines per day with
a range of zero to seven. The mean waiting time for an item to be serviced
would be
(A) 1 day (B) 1 day
6 3
(C) 1 day (D) 3 day
MCQ 11.61 A company has an annual demand of 1000 units, ordering cost of Rs. 100
/ order and carrying cost of Rs. 100 / unit/year. If the stock-out cost are
estimated to be nearly Rs. 400 each time the company runs out-of-stock,
then safety stock justified by the carrying cost will be
(A) 4 (B) 20
(C) 40 (D) 100

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MCQ 11.62 A company produces two types of toys : P and Q . Production time of Q is
twice that of P and the company has a maximum of 2000 time units per day.
The supply of raw material is just sufficient to produce 1500 toys (of any
type) per day. Toy type Q requires an electric switch which is available @
600 pieces per day only. The company makes a profit of Rs. 3 and Rs. 5 on
type P and Q respectively. For maximization of profits, the daily production
quantities of P and Q toys should respectively be
(A) 1000, 500 (B) 500, 1000
(C) 800, 600 (D) 1000, 1000
YEAR 2003 ONE MARK
MCQ 11.63 The symbol used for Transport in work study is

(A) & (B) T
(C) > (D) 4
YEAR 2003 TWO MARKS
MCQ 11.64 Two machines of the same production rate are available for use. On
machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece
produced. The corresponding numbers for the machine 2 are Rs. 200 and
Re . 1 respectively. For certain strategic reasons both the machines are to be
used concurrently. The sales price of the first 800 units is Rs. 3.50 per unit
and subsequently it is only Rs. 3.00. The breakeven production rate for each
machine is
(A) 75 (B) 100
(C) 150 (D) 600
MCQ 11.65 A residential school stipulates the study hours as 8.00 pm to 10.30 pm.
Warden makes random checks on a certain student 11 occasions a day during
the study hours over a period of 10 days and observes that he is studying on
71 occasions. Using 95% confidence interval, the estimated minimum hours
of his study during that 10 day period is
(A) 8.5 hours (B) 13.9 hours
(C) 16.1 hours (D) 18.4 hours
MCQ 11.66 The sale of cycles in a shop in four consecutive months are given as 70, 68,
82, 95. Exponentially smoothing average method with a smoothing factor of
0.4 is used in forecasting. The expected number of sales in the next month is
(A) 59 (B) 72
(C) 86 (D) 136

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MCQ 11.67 Market demand for springs is 8,00,000 per annum. A company purchases
these springs in lots and sells them. The cost of making a purchase order
is Rs. 1200 . The cost of storage of springs is Rs. 120 per stored piece per
annum. The economic order quantity is
(A) 400
(B) 2,828
(C) 4,000
(D) 8,000
MCQ 11.68 A manufacturer produces two types of products, 1 and 2, at production levels
of x1 and x2 respectively. The profit is given is 2x1 + 5x2 . The production
constraints are
x1 + 3x2 # 40
3x1 + x2 # 24
x1 + x2 # 10
x1 > 0 , x 2 > 0
The maximum profit which can meet the constraints is
(A) 29 (B) 38
(C) 44 (D) 75
MCQ 11.69 A project consists of activities A to M shown in the net in the following
figure with the duration of the activities marked in days
The project can be completed

(A) between 18, 19 days (B) between 20, 22 days
(C) between 24, 26 days (D) between 60, 70 days
MCQ 11.70 The principles of motion economy are mostly used while conducting
(A) a method study on an operation
(B) a time study on an operation
(C) a financial appraisal of an operation
(D) a feasibility study of the proposed manufacturing plant

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YEAR 2002 ONE MARK
MCQ 11.71 The standard time of an operation while conducting a time study is
(A) mean observed time + allowances
(B) normal time + allowances
(C) mean observed time # rating factor + allowances
(D) normal time # rating factor + allowances
MCQ 11.72 In carrying out a work sampling study in a machine shop, it was found that
a particular lathe was down for 20% of the time. What would be the 95%
confidence interval of this estimate, if 100 observations were made ?
(A) (0.16, 0.24) (B) (0.12, 0.28)
(C) (0.08, 0.32) (D) None of these
MCQ 11.73 An item can be purchased for Rs. 100. The ordering cost is Rs. 200 and the
inventory carrying cost is 10% of the item cost per annum. If the annual
demand is 4000 unit, the economic order quantity (in unit) is
(A) 50 (B) 100
(C) 200 (D) 400
YEAR 2002 TWO MARKS
MCQ 11.74 Arrivals at a telephone booth are considered to be Poisson, with an average
time of 10 minutes between successive arrivals. The length of a phone call
is distributed exponentially with mean 3 minutes. The probability that an
arrival does not have to wait before service is
(A) 0.3 (B) 0.5
(C) 0.7 (D) 0.9
MCQ 11.75 The supplies at three sources are 50, 40 and 60 unit respectively whilst the
demands at the four destinations are 20, 30, 10 and 50 unit. In solving this
transportation problem
(A) a dummy source of capacity 40 unit is needed
(B) a dummy destination of capacity 40 unit is needed
(C) no solution exists as the problem is infeasible
(D) no solution exists as the problem is degenerate
MCQ 11.76 A project consists of three parallel paths with mean durations and variances
of (10, 4), (12, 4) and (12, 9) respectively. According to the standard PERT
assumptions, the distribution of the project duration is
(A) beta with mean 10 and standard deviation 2
(B) beta with mean 12 and standard deviation 2
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(C) normal with mean 10 and standard deviation 3

(D) normal with mean 12 and standard deviation 3
YEAR 2001 ONE MARK
MCQ 11.77 Production flow analysis (PFA) is a method of identifying part families that
uses data from
(A) engineering drawings (B) production schedule
(C) bill of materials (D) route sheets
MCQ 11.78 When using a simple moving average to forecast demand, one would
(A) give equal weight to all demand data
(B) assign more weight to the recent demand data
(C) include new demand data in the average without discarding the earlier
data
(D) include new demand data in the average after discarding some of the
earlier demand data
YEAR 2001 TWO MARKS
MCQ 11.79 Fifty observations of a production operation revealed a mean cycle time
of 10 min . The worker was evaluated to be performing at 90% efficiency.
Assuming the allowances to be 10% of the normal time, the standard time
(in second) for the job is
(A) 0.198 (B) 7.3
(C) 9.0 (D) 9.9
********

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SOLUTION
SOL 11.1 Option (A) is correct.

Costs relevant to aggregate production planning is as given below.
(i) Basic production cost : Material costs, direct labour costs, and overhead
cost.
(ii) Costs associated with changes in production rate : Costs involving
in hiring, training and laying off personnel, as well as, overtime
compensation.
(iii) Inventory related costs.
Hence, from above option (A) is not related to these costs. Therefore option
(A) is not a decision taken during the APP.
SOL 11.2 Option (C) is correct.
For path Duration

a -b -e -g -h = 3 + 4 + 2 + 6 + 2 = 17 days
a -c -g -h = 3 + 5 + 6 + 2 = 16 days
a -d - f -h = 3 + 4 + 9 + 2 = 18 days
The critical path is one that takes longest path.
Hence, path a - d - f - h = 18 days is critical path

From previous question
For critical path
a -d - f -h = 18 days , the duration of activity f alone is changed from 9 to 10
days, then
a - d - f - h = 3 + 4 + 10 + 2 = 19 days
Hence critical path remains same and the total duration to complete the
project changes to 19 days.
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SOL 11.4 Option (D) is correct.

Given : = 5 per hour , = 1 # 60 per hour = 6 per hour
10
Average waiting time of an arrival
Wq = = 5
( ) 6 (6 5)
= 5 hours = 50 min
6
SOL 11.5 Option (B) is correct.

Kanban Literally, a Visual record; a method of controlling materials flow
through a Just-in-time manufacturing system by using cards to authorize a
work station to transfer or produce materials.

Since, in Z j Row of final (second) obtimum table the value of slack variable
S2 showns the unit worth or dual price of Resource R2 and the value of S2
in given below table is zero. Hence the dual Price of Resource R2 is zero.
Max Z = 2000P1 + 3000P2
S.T. 3P1 + 2P2 # 90 " R1 Resource
P1 + 2P2 # 100 " R2 Resource
P1 , P2 $ 0
Solution : Z = 2000P1 + 3000P2 + 0.S1 + 0.S2
S.T. 3P1 + 2P2 + S1 = 90
P1 + 2P2 + S2 = 100
P1 $ 0 , P2 $ 0 , S1 $ 0 , S2 $ 0
First table :-
Cj 2000 3000 0 0
CB SB PB P1 P2 S1 S2
0 S1 90 3 2 " 1 0
0 S2 100 1 2 0 1
Zj 0 0 0 0
Zj Cj 2000 3000 0 0
-
Second Table :-
Cj 2000 3000 0 0
CB SB PB P1 P2 S1 S2
3000 P2 45 3/2 1 1/2 0

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0 S2 10 2 0 1 1
Zj 4500 3000 1500 0 " unit worth of R2
Zj Cj 2500 0 1500 0

Since all Z j C j $ 0 , an optimal basic feasible solution has been attained.
Thus, the optimum solution to the given LPP is
Max Z = 2000 # 0 + 3000 # 45 = Rs.135000 with P1 = 0 and P2 = 45

Given, forecast for February = 10275
Ft 1
Demand for February Dt 1 = 12000
Smoothing coefficient = 0.25
Which is The forecast for the next period is given by,
Ft = (Dt 1) + (1 ) # Ft 1
= 0.25 # (12000) + (1 0.25) # (10275)
= 10706.25 - 10706
Hence, forecast for the month of march is 10706.

Littles law is a relationship between average waiting time and average
length of the queue in a queuing system.
The little law establish a relation between Queue length (Lq), Queue waiting
time (Wq) and the Mean arrival rate .
So, Lq = Wq

Vehicle manufacturing assembly line is an example of product layout.
A product-oriented layout is appropriate for producing one standardized
product, usually in large volume. Each unit of output requires the same
sequence of operations from beginning to end.

Simplex method provides an algorithm which consists in moving from one
point of the region of feasible solutions to another in such a manner that
the value of the objective function at the succeeding point is less (or more,
as the case may be) than at the preceding point. This procedure of jumping
from one point to another is then repeated. Since the number of points is

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finite, the method leads to an optimal point in a finite number of steps.

Therefore simplex method only uses the interior points in the feasible region.

Given : D = 10000
Ordering cost Co = Rs. 300 per order
Holding cost Ch = Rs. 40 per frame per year
Unit cost, Cu = Rs. 200
EOQ = 2Co D = 2 # 300 # 10000 - 387 units
Ch 40
Total cost = Purchase cost + holding cost + ordering cost
For EOQ = 387 units
Q
Total cost = D # Cu + # Ch + D # Co
2 Q
Where Q = EOQ = 387 units
Total cost = 10000 # 200 + 387 # 40 + 10000 # 300
2 387
= 2000000 + 7740 + 7752 = Rs. 2015492
Now supplier offers 2% discount if the order quantity is 1000 or more.
For Q = 1000 units
Total cost = 10000 # (200 # 0.98) + 1000 # 40 + 10000 # 300
2 1000
= 1960000 + 20000 + 3000 = Rs. 1983000
Supplier also offers 4% discount if order quantity is 2000 or more.
For Q = 2000 units
Total cost = 10000 # (200 # 0.96) + 2000 # 40 + 10000 # 300
2 2000
= 1920000 + 40000 + 1500 = Rs. 1961500
It is clearly see that the total cost is to be minimized, the retailer should
accept 4% discount.

We have to draw a arrow diagram from the given data.

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Here Four possible ways to complete the work.
Path Total duration (days)

(i) PRTV T = 3 + 5 + 7 + 2 = 17
(ii) QSTV T = 4 + 5 + 7 + 2 = 18
(iii) Q S U W T = 4 + 5 + 5 + 10 = 24
(iv) PRUW T = 3 + 5 + 5 + 10 = 23
The critical path is the chain of activities with the longest time durations.
So, Critical path = Q S U W

In the Earliest due date (EDD) rule, the jobs will be in sequence according
to their earliest due dates.
Table shown below :
Job Processing time Due date Operation start Operation end

(in days)
1 4 6 0 0+4 = 4
2 7 9 4 4 + 7 = 11
4 8 17 11 11 + 8 = 19
3 2 19 19 19 + 2 = 21
We see easily from the table that, job 2, 4, & 3 are delayed.
Number of jobs delayed is 3.

By using the shortest processing time (SPT) rule & make the table
Job Processing time Flow time Due date Tradiness

(in days) Start End
3 2 0 2 19 0
1 4 2 2+4 = 6 6 0
2 7 6 6 + 7 = 13 9 4
4 8 13 13 + 8 = 21 17 4
So, from the table

Total Tradiness = 4 + 4 = 8

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Under the conditions of uncertainty, the estimated time for each activity for
PERT network is represented by a probability distribution. This probability
distribution of activity time is based upon three different time estimates
made for each activity. These are as follows.
to = the optimistic time, is the shortest possible time to complete the
activity if
all goes well.
tp = the pessimistic time, is the longest time that an activity could take if
every
thing goes wrong
tl = the most likely time, is the estimate of normal time an activity would
take.
The expected time (te) of the activity duration can be approximated as the
arithmetic mean of (to + t p) /2 and 2tl . Thus
(t + t p) t + 4tl + t p
(te) = 1 :2tl + o D = o
3 2 6

Exponential smoothing method of forecasting takes a fraction of forecast
error into account for the next period forecast.
The exponential smoothed average ut , which is the forecast for the next
period (t + 1) is given by.
ut = yt + (1 ) yt 1 + .... (1 ) n yt n + .....3
= yt + (1 ) [yt 1 + (1 ) yt 2 + ... + (1 ) n yt (n 1) + ...]
= ut 1 + (yt ut 1)
= u t 1 + e t
where et = (yt ut 1) is called error and is the difference between the least
observation, yt and its forecast a period earlier, ut 1 .
The value of lies between 0 to 1.

In figure,
ROP = Reorder point
LT = Lead Time = 8 days
TT = Total Time = 365 days
q = stock level = 2555 units
Let the reorder quantity be x

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Now from the similar triangles

ABC & BDE
q
= x
TT LT
& 2555 = x
365 8
x = 2555 # 8 = 56 Units
365
Alternate Method
Given,
Demand in a year D = 2555 Units
Lead time T = 8 days
Now, Number of orders to be placed in a year
Number. of days in a year
N = = 365 orders
Lead Time 8
Now, quantity ordered each time or reorder point.
Demand in a years
Q = = 2555 = 56 Units
Number of orders 365
8
Given objective function
Z max = 3x1 + 2x2
and constraints are
x1 # 4 ...(i)
x2 # 6 ...(ii)
3x1 + 2x2 # 18 ...(iii)
x1 $ 0
x2 $ 0

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Plot the graph from the given constraints and find the common area.
Now, we find the point of intersection E & F .

For E , 3x1 + 2x2 = 18
(E is the intersection point of equation. (ii) &
(iii))
x2 =6
So, 3x1 + 12 = 18
x1 =2
For F , 3x1 + 2x2 = 18
x1 =4
So, 3 # 4 + 2x2 = 18
x2 =3
Hence,
E (2, 6) or F (4, 3)
Now at point E (2, 6)
Z = 3#2+2#6
= 18
At point F (4, 3)
Z = 3#4+2#3
= 18
The objective function and the constraint (represent by equation (iii)) are
equal.
Hence, the objective function will have the multiple solutions as at point
E & F , the value of objective function (Z = 3x1 + 2x2) is same.

In shortest processing time rule, we have to arrange the jobs in the increasing
order of their processing time and find total flow time.
So, job sequencing are I - III - V - VI - II - IV
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Jobs Processing Time (days) Flow time (days)

I 4 4
III 5 4+5 = 9
V 6 9 + 6 = 15
VI 8 15 + 8 = 23
II 9 23 + 9 = 32
IV 10 32 + 10 = 42
Now Total flow time T = 4 + 9 + 15 + 23 + 32 + 42

= 125
Average flow time = Total flow time
Number of jobs
Taverage = 125 = 20.83 days
6

Make the table and calculate the excepted time and variance for each activity
Activity Optimistic Most Pessimistic Expected Variance

t to 2
2 = b p
6 l
time likely time (days) Time
(days) time t p (days)
to (days) t + 4tm + t p
te = o
tm 6
1+8+3 = 2 31 2 1
b 6 l =9
1-2 1 2 3
6
5 + 24 + 7 = 6 75 2 1
b 6 l =9
1-3 5 6 7
6
3 + 20 + 7 = 5 73 2 4
b 6 l =9
1-4 3 5 7
6
5 + 28 + 9 = 7 95 2 4
b 6 l =9
2-5 5 7 9
6
2 + 16 + 6 = 4 62 2 4
b 6 l =9
3-5 2 4 6
6
4 + 20 + 6 = 5 64 2 1
b 6 l =9
5-6 4 5 6
6
4 + 24 + 8 = 6 84 2 4
b 6 l =9
4-7 4 6 8
6
2 + 12 + 4 = 3 42 2 1
b 6 l =9
6-7 2 3 4
6

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Now, the paths of the network & their durations are given below in tables.
Paths Expected Time duration (in days)

i Path 1-3-5-6-7 T = 6 + 4 + 5 + 3 = 18
ii Path 1-2-5-6-7 T = 2 + 7 + 5 + 3 = 17
iii Path 1-4-7 T = 5 + 6 = 11
Since path 1-3-5-6-7 has the longest duration, it is the critical path of the
network and shown by dotted line.
Hence,
The expected duration of the critical path is 18 days.

The critical path is 1-3-5-6-7
Variance along this critical path is,
2 = 12 3 + 23 5 + 25 6 + 26 7
=1+4+1+1 =7
9 9 9 9 9
We know,
Standard deviation = Variance ( 2)
7 = 0.88
=
9
The most appropriate answer is 0.77.

The most common distribution found in queuing problems is poisson
distribution. This is used in single-channel queuing problems for random
arrivals where the service time is exponentially distributed.
Probability of n arrivals in time t
(T) n : e T
P = where n = 0, 1, 2.......
n!
So, Probability density function of inter arrival time (time interval between
two consecutive arrivals)
f (t) = : e t

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Total inventory cost will be minimum, when the holding cost is minimum.
Now, from the Johnsons algorithm, holding cost will be minimum, when we
process the least time consuming job first. From this next job can be started
as soon as possible.
Now, arrange the jobs in the manner of least processing time.
T -S -Q -R-P or T -Q -S -R-P (because job Q and S have same processing
time).

In a transportation problem with m origins and n destinations, if a basic
feasible solution has less than m + n 1 allocations (occupied cells), the
problem is said to be a degenerate transportation problem.
So, the basic condition for the solution to be optimal without degeneracy is.
Number of allocations = m + n 1

Here F1 (t) & F2 (t) = Forecastings
m1 & m2 = Number of weeks
A higher value of m results in better smoothing. Since here m1 > m2 the
weightage of the latest demand would be more in F2 (t).
Hence, F2 (t) will attain the value of d2 before F1 (t).

There are two paths to reach from node P to node G .
(i) Path P -Q -G (ii) Path P -R-G
For Path P -Q -G ,
Length of the path SG = SQ + dQG
For path P -R-G ,
Length of the path SG = SR + dRG
So, shortest path SG = Min "SQ + dQG , SR + dRG ,

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From the product structure we see that 2 piece of R is required in production
of 1 piece P .
So, demand of R is double of P
Week Demand Demand Inventory level

(P) (R) I = Production Demand
1 1000 2000 R 2000
2 1000 2000 2R 4000
3 1000 2000 3R 6000
4 1000 2000 4R 8000
5 1200 2400 5R 10400
6 1200 2400 6R 12800
We know that for a production system with bottleneck the inventory level
should be more than zero.
So,
6R 12800 $ 0
For minimum inventory
6R 12800 = 0
6R = 12800
R = 2133
- 2200
Hence, the smallest capacity that will ensure a feasible production plan up
to week 6 is 2200.

The LP has an optimal solution that is not unique, because zero has appeared
in the non-basic variable (x and y ) column, in optimal solution.

The general form of LP is
Max Z = CX
Subject to AX # B
And dual of above LP is represented by
Min Z = BT Y
Subject to A Y $ C T
So, the dual is Min 6u + 6v
Subject to 3u + 2v $ 4
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2u + 3v $ 6
u, v $ 0

We have to make a table from the given data.
Month Production (Pieces) Demand Excess or short form

(pieces)
In regular In over Regular Total
time time
1 100 20 90 10 10 + 20 = 30
2 100 20 130 30 30 + 20 = 10
3 80 40 110 30 30 + 40 = 10
From the table,
For 1st month there is no need to overtime, because demand is 90 units
and regular time production is 100 units, therefore 10 units are excess in
amount. For 2nd month the demand is 130 unit and production capacity
with overtime is 100 + 20 = 120 units , therefore 10 units (130 120 = 10)
are short in amount, which is fulfilled by 10 units excess of 1st month. So at
the end of 2nd month there is no inventory.
Now for the 3rd month demand is 110 units and regular time production
is 80 units. So remaining 110 80 = 30 units are produced in overtime to
fulfill the demand for minimum cost of plan.

Total annual cost = Annual holding cost + Annual ordering cost
Maximum level of inventory N = 100
So, Average inventory = N = 50
2
Inventory carrying cost Ch = Rs. 10 per item per month
= Rs. 10 # 12 per item per year
= Rs. 120 per item per year
So, Annual holding cost = N # Ch
2
ChA = 50 # 120
= Rs.6000 item per year
And, Ordering cost Co = 100 per order
Number of orders in a year = 12 order
1.5

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= 8 order
So, Annual ordering cost CoA = ordering cost per order # no. of orders
= 100 # 8
= Rs.800 per order
Hence,
Total Annual cost = 6000 + 800
= Rs.6800

Given :
Number of items produced per moth
K = 1000 per month
Number of items required per month
R = 500 per month
Lot size q 0 = 1000
When backlog is not allowed, the maximum inventory level is given by,
Im = K R # qo = 1000 500 # 1000 = 500
K 1000

Given :
Ch = Rs. 1 per item per week
Co = Rs. 100 per order
Requirements = 50 - 0 - 15 - 20 - 20
Total cost is the cost of carrying inventory and cost of placing order.
Case (I) Only one order of 105 units is placed at starting.
Weeks Quantity Cost

Inventory Used Carried forward Order Carrying Total
1. 105 (ordered) 50 55 100 55 155
2. 55 0 55 0 55 55
3. 55 15 40 0 40 40
4. 40 20 20 0 20 20
5. 20 20 0 0 0 0
Total cost of plan = 155 + 55 + 40 + 20 = 270 Rs .

Case (II) Now order is placed two times, 50 units at starting and 55 units
after 2 nd week.

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Weeks Quantity Cost

Inventory Used Carried forward Ordering Carrying Total
Rs. Rs. Rs.
1. 50 50 0 100 0 100
(ordered)
2. 0 0 0 0 0 0
3. 55 15 40 100 40 140
(ordered)
4. 40 20 20 0 20 20
5. 20 20 0 0 0 0
Total cost of plan = 100 + 140 + 20 = 260 Rs.

Case (III) The order is placed two times, 65 units at starting and 40 units
after 3 rd week.
Weeks Quantity Cost

Inventory Used Carried Ordering Carrying Total
forward Rs. Rs. Rs.
1. 65 50 15 100 15 115
(ordered)
2. 15 0 15 0 15 15
3. 15 15 0 0 0 0
4. 40 20 20 100 20 120
(ordered)
5. 20 20 0 0 0 0
Total cost of plan = 115 + 15 + 120 = 250 Rs.

Case (IV) Now again order is placed two times, 85 units at starting and 20
units after 4 th week.
Weeks Quantity Cost

Inventory Used Carried forward Order Carrying Total
1. 85 50 35 100 35 135
(ordered)
2. 35 0 35 0 35 35
3. 35 15 20 0 20 20
4. 20 20 0 0 0 0
5. 20 20 0 100 0 100
(ordered)

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Total cost of plan = 135 + 35 + 20 + 100 = 290 Rs.

So, The cost of plan is least in case (III) & it is 250 Rs.

Given : = 8 per hour
= 6 min per customer
= 60 customer/hours = 10 customer/hour
6
We know, for exponentially distributed service time.
Average number of customers in the queue.
Lq = # = 8 # 8 = 3.2
( ) 10 (10 8)

MRP (Material Requirement Planning) :
MRP function is a computational technique with the help of which the
master schedule for end products is converted into a detailed schedule for
raw materials and components used in the end product.
Input to MRP
(i) Master production schedule.
(ii) The bill of material
(iii) Inventory records relating to raw materials.

First finding the sequence of jobs, which are entering in the machine. The
solution procedure is described below :
By examining the rows, the smallest machining time of 6 hours on machine
M 2. Then scheduled Job P last for machine M 2
After entering this value, the next smallest time of 7 hours for job U on
machine M 2. Thus we schedule job U second last for machine M 2 as shown
below
After entering this value, the next smallest time of 8 hours for job R on
machine M1. Thus we schedule job R first as shown below.

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After entering this value the next smallest time of 11 hours for job T on
machine M1. Thus we schedule job T after the job R.
After this the next smallest time of 19 hours for job Q on machine M 2. Thus
schedule job Q left to the U and remaining job in the blank block.
Now the optimal sequence as :
Then calculating the elapsed time corresponding to the optimal sequence,

using the individual processing time given in the problem.
The detailed are shown in table.
M1 M2
Jobs
In Out In Out
R 0 8 8 8 + 13 = 21
T 8 8 + 11 = 19 21 21 + 14 = 35
S 19 19 + 27 = 46 46 46 + 20 = 66
Q 46 46 + 32 = 78 78 78 + 19 = 97
U 78 78 + 16 = 94 97 97 + 7 = 104
P 94 94 + 15 = 109 109 109 + 6 = 115
We can see from the table that all the operations (on machine 1st and
machine 2nd) complete in 115 hours. So the optimal make-span of the shop
is 115 hours.

Given : D = 2500 units per year
Co = Rs. 100 per order
Ch = 25% of unit price
Case (I) : When order quantity is less than 500 units.
Then, Unit price = 10 Rs.
and Ch = 25% of 10 = 2.5 Rs.
EOQ = 2C 0 D = 2 # 100 # 2500
Ch 2.5
Q = 447.21 - 447 units

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Q
Total cost = D # unit cost + c +D c
2# h Q# o
= 2500 # 10 + 447 # 2.5 + 2500 # 100
2 447
= 25000 + 558.75 + 559.75 = 26118 Rs.
Case (II) : when order Quantity is 500 units. Then unit prize = 9 Rs.
and ch = 25% of 9 = 2.25 Rs.
Q = 500 units
Total cost = 2500 # 9 + 500 # 2.25 + 2500 # 100
2 500
= 22500 + 562.5 + 500 = 23562.5 Rs.
So, we may conclude from both cases that the optimum order quantity must
be equal to 500 units.

Given, In figure
Step (I) : Reduce the matrix :

In the effectiveness matrix, subtract the minimum element of each row from
all the element of that row. The resulting matrix will have at least one zero
element in each row.
Step (II) : Mark the column that do not have zero element. Now substract
the minimum element of each such column for all the elements of that
column.

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Step (III) : Check whether an optimal assignment can be made in the

reduced matrix or not.
For this, Examine rows successively until a row with exactly one unmarked
zero is obtained. Making square (4) around it, cross (#) all other zeros
in the same column as they will not be considered for making any more
assignment in that column. Proceed in this way until all rows have been
examined.
In this there is not one assignment in each row and in each column.
Step (IV) : Find the minimum number of lines crossing all zeros. This
consists of following substep
(A) Right marked ( ) the rows that do not have assignment.
(B) Right marked ( ) the column that have zeros in marked column (not
already marked).
(C) Draw straight lines through all unmarked rows and marked columns.
Step (V) : Now take smallest element & add, where two lines intersect.
No change, where single line & subtract this where no lines in the block.
So, minimum cost is = 120 + 140 + 125 = 385

Profit per unit sold = 90 70 = 20 Rs.
Loss per unit unsold item = 70 50 = 20 Rs.
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Now consider all the options :
Cases Units in Unit sold Profit Probability Total

stock (Demand) profit
Option 2 2 2 # 20 = 40 0.1 4
(D)
Option 3 2 2 # 20 1 # 20 = 20 0.1 2
(C)
3 3 3 # 20 = 60 0.35 21
23
Option 4 2 2 # 20 2 # 20 = 0 0 0
(B)
4 3 3 # 20 1 # 20 = 40 0.35 14
4 4 4 # 20 = 80 0.35 28
42
Option 5 2 2 # 20 3 # 20 = 20 0.10 2
(A)
5 3 3 # 20 2 # 20 = 20 0.35 7
5 4 4 # 20 1 # 20 = 60 0.35 21
5 5 5 # 20 = 100 0.20 20
46
Thus, For stock level of 5 units, profit is maximum.

Total time used = 7 + 9 + 7 + 10 + 9 + 6
= 48 min
Number of work stations = 6
Maximum time per work station (cycle time) = 10 min
We know,
Line efficiency L = Total time used
Number of work stations # cycle time
L = 48 = 0.8 = 80%
6 # 10

We have to make a network diagram from the given data.

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For simple projects, the critical path can be determined quite quickly by
enumerating all paths and evaluating the time required to complete each.
There are three paths between a and f . The total time along each path is
(i) For path a -b-d - f
Tabdf = 30 + 40 + 25 + 20 = 115 days
(ii) For path a -c -e - f
Tacef = 30 + 60 + 45 + 20 = 155 days
(iii) For path a -b-e - f
Tabef = 30 + 40 + 45 + 20 = 135 days
Now, path a -c -e - f be the critical path time or maximum excepted completion
time T = 155 days

The critical path of the network is a -c -e - f .
Now, for variance.
Task Variance (days2 )

a 25
c 81
e 36
f 9
Total variance for the critical path
Vcritical = 25 + 81 + 36 + 9
= 151 days2
We know the standard deviation of critical path is
= Vcritical = 151 days

In operation process chart an assembly activity is represented by the symbol
O

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Gives :
Sales of product during four years were 860, 880, 870 and 890 units.
Forecast for the fourth year u 4 = 876
Forecast for the fifth year, using simple exponential smoothing, is equal to
the forecast using a three period moving average.
So, u5 = 1 (880 + 870 + 890)
3
u5 = 880 unit
By the exponential smoothing method.
u5 = u 4 + (x 4 u 4)
880 = 876 + (890 876)
4 = (14)
= 4 =2
14 7

Given : = 4/hour , = 4/hour
n = 10
The sum of probability /P n =1 n = 10
n=0
P0 + P1 + P2 ..... + P10 = 1
In the term of traffic intensity = & =4=1
4
So,
P0 + P0 + 2 P0 + 3 P0 + ......10 P0 = 1 P1 = P0 , P2 = 2 P0 and so on
P0 (1 + 1 + 1 + ........) = 1
P0 # 11 = 1
P0 = 1
11
Hence, the probability that a person who comes in leaves without joining
the queue is,
P11 = 11 : P0
P1 = 111 # 1 = 1
11 11

For economic point of view, we should calculate the total cost for all the
four processes.
Total cost = Fixed cos t + Variable cos t # Number of piece
For process (I) :

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Fixed cost = 20 Rs.

Variable cost = 3 Rs. per piece
Number of pieces = 100
Total cost = 20 + 3 # 100 = 320 Rs.
For process (II) :
Total cost = 50 + 1 # 100 = 150 Rs.
For process (III) :
Total cost = 40 + 2 # 100 = 240 Rs.
For process (IV) :
Total cost = 10 + 4 # 100 = 410 Rs.
Now, we can see that total cost is minimum for process (II). So process (II)
should choose for economic point of view.

Given : Rating factor = 120%
Actual time Tactual = 8 min
Normal time Tnormal = actual time # Rating factor
Tnormal = 8 # 120 = 9.6 min
100
10% allowance is allowed for this operation.
So, standard time,
Ts tandard = Tnormal = 9.6 = 10.67 min
1 10 0.9
100
Hence, standard production rate of the weld joint
= 8 # 60 = 45 units
10.67
The expected value of the lead time demand

= 80 # 0.20 + 100 # 0.25 + 120 # 0.30 + 140 # 0.25
= 112
Reorder level is 1.25 time the lead time demand.
So, reorder value = 1.25 # 112 = 140
Here both the maximum demand or the reorder value are equal.
Hence, service level = 100%

The 3 activity need to be crashed to reduce the project duration by 1 day.

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First we have to make a transportation model from the given details.
We know,
Basic condition for transportation model is balanced, if it contains no more
than m + n 1 non-negative allocations, where m is the number of rows and
n is the number of columns of the transportation problem.
So, Number of supply point (allocations) = m + n 1
= 2+21 = 3
Number of demand points = 4 (No. of blank blocks)
Total supply or demand = 50 + 40 = 90

Given : Objective function Z = X1 + X2
From the given corners we have to make a graph for X1 and X2
From the graph, the constraint X1 + X2 # 5 has no effect on optimal region.

Now, checking for optimal solution
Point Z = X1 + X 2
(i) O (0, 0) Z=0
(ii) A (2, 0) Z = 2+0 = 2
(iii) B (0, 2) Z = 0+2 = 2
(iv) C (4/3, 4/3) Z = 4/3 + 4/3 = 8/3

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The optimal solution occurs at point C (4/3, 4/3)

We know,
The inequality constraints are changed to equality constraints by adding
or subtracting a non-negative variable from the left-hand sides of such
constraints. These variable is called slack variables or simply slacks.
They are added if the constraints are (#) and subtracted if the constraints
are ($) . These variables can remain positive throughout the process of
solution and their values in the optimal solution given useful information
about the problem.
Hence, Optimum dual variables are v1 and v2 .

PERT (Programme Evaluation and Review Technique) uses even oriented
network in which successive events are joined by arrows.
Float is the difference between the maximum time available to perform the
activity and the activity duration. In PERT analysis a critical activity has
zero float.

Given :
Forecast sales for December ut = 25
Actual sales for December Xt = 20
Exponential smoothing constant = 0.2
We know that, Forecast sales for January is given by
u t + 1 = u t + [X t u t ]
= 25 + 0.2 (20 25)
= 25 + 0.2 # ( 5) = 25 1 = 24
Hence, Forecast sales for January 2003 would be 24.

For product P : D = 100 units , Co = 50 Rs./order , Ch = 4 Rs./unit/year
Economic order quantity (EOQ) for product P ,
(EOQ) P = 2Co D
Ch
(EOQ) P = 2 # 50 # 100 = 2500 = 50 ...(i)
4
For product Q :
D = 400 Units Co = 50 Rs. order , Ch = 1 Rs. Unit/year

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EOQ For Product Q ,

(EOQ)Q = 2Co D
Ch
= 2 # 50 # 400 = 40000 = 200 ...(ii)
1
From equation (i) & (ii),
(EOQ) P
= 50 = 1
(EOQ)Q 200 4
(EOQ) P :(EOQ)Q = 1: 4

Let, The standard machine tool produce x1 number of components.
For standard machine tool,
Total cost = Fixed cost + Variable cost # Number. of components
(TC) SMT = : 30 + 22 # x1D # 200

60 60
= 30 # 200 + 22 # x1 # 200 = 100 + 220 x1 ...(i)
60 60 3
If automatic machine tool produce x2 Number of components, then the total
cost for automatic machine tool is
(TC) AMT = b 2 + 5 x2 l 800
60
= 1600 + 200 x2 ....(ii)
3
Let, at the breakeven production batch size is x and at breakeven point.
(TC) SMT = ^TChAMT
100 + 220x = 1600 + 200x

3 3
220x 200x = 1600 100
3 3
20x = 1500
3
x = 1500 # 3 = 225
20
So, breakeven production batch size is 225.

Given :
Total time T = 16 hours = 16 # 60 = 960 min
Actual working time was 90% of total time
So, Actual time, Tactual = 90% of 960

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= 90 # 960 , Tactual = 864 min

100
Performance rating was 120 percent.
So, Normal time, Tnormal = 120% of 864
= 120 # 864 = 1036.8 min
100
Allowance is 20% of the total available time.
So total standard time Ts tandard = Tnormal = 1036.8 = 1036.8
1 0.2
b1 100 l
20 0.8
= 1296 min
Number of joints soldered, N = 108
Hence,
Standard time for operation = 1296 = 12 min
108

Given :
Number of units produced in a day = 80 units
Working hours in a day = 8 hours
Now, Time taken to produce one unit is,
T = 8 # 60 = 6 min
80
Activity Standard time (min) No. of work stations

(S.T/T)
M. Mechanical assembly 12 12/6 = 2
E. Electric wiring 16 16/6 = 2.666 = 3
T. Test 3 3/6 = 0.5 = 1
Number of work stations are the whole numbers, not the fractions.
So, number of work stations required for the activities M, E and T would be
2, 3 and 1, respectively.

Given :
Mean arrival rate = 3 per day
Mean service rate = 6 per day
We know that, for first come first serve queue.
Mean waiting time of an arrival,

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t = = 3 = 1 day
( ) 6 (6 3) 6

Given : D = 1000 units , Co = 100/order , Ch = 100 unit/year
Cs = 400 Rs.
We know that, optimum level of stock out will be,
S.O = 2DCo # Cs
Ch Ch + Cs
S.O = 2 # 1000 # 100 # 400
100 100 + 400
= 44.72 # 0.895 = 40

Solve this problem, by the linear programming model.
We have to make the constraints from the given conditions.
For production conditions
P + 2Q # 2000 ...(i)
For raw material
P + Q # 1500 ...(ii)
For electric switch
Q # 600 ...(iii)
For maximization of profit, objective function
Z = 3P + 5Q ...(iv)
From the equations (i), (ii) & (iii), draw a graph for toy P and Q
Line (i) and line (ii) intersects at point A, we have to calculate the intersection
point.
P + 2Q = 2000
P + Q = 1500

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After solving there equations, we get A (1000, 500)

For point B ,
P + 2Q = 2000
Q = 600
P = 2000 1200 = 800
So, B (800, 600)
Here shaded area shows the area bounded by the three line equations
(common area)
This shaded area have five vertices.
Vertices Profit Z = 3P + 5Q
(i) 0(0, 0) Z=0
(ii) A (1000, 500) Z = 3000 + 2500 = 5500
(iii) B (800, 600) Z = 2400 + 3000 = 5400
(iv) C (0, 600) Z = 3000
(v) D (1500, 0) Z = 4500
So, for maximization of profit

P = 1000 from point(ii)
Q = 500

The symbol used for transport in work study is given by, &

Given : For machine M1 :
Fixed cost = 100 Rs.
For machine M 2 :
Fixed cost = 200 Rs.
Let, n number of units are produced per machine, when both the machines
are to be used concurrently.
We know that,
Total cost = Fixed cost + Variable cos t # Number of units
For M 1, Total cost of production = 100 + 2 # n
For M 2, Total cost of production = 200 + n
Hence,
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Total cost of production on machine M 1 & M 2 is

= 100 + 2n + 200 + n = 300 + 3n
We know, Breakeven point is the point, where total cost of production is
equal to the total sales price.
Assuming that Number of units produced are less than 800 units and selling
price is Rs. 3.50 per unit.
So at breakeven point,
300 + 3n = 3.50 (n + n)
300 + 3n = 3.50 # 2n
300 = 4n
n = 300 = 75 units
4

Warden checks the student 11 occasions a day during the study hours over
a period of 10 days.
So, Total number of observations in 10 days.
= 11 # 10 = 110 observations
Study hours as 8.00 pm to 10.30 pm.
So, total study hours in 10 days
= 2.5 # 10 = 25 hours.
Number of occasions when student studying = 71
So, Probability of studying
No. of observations when student studying
P = = 71 = 0.645
Total observations 110
Hence,
Minimum hours of his study during 10 day period is
T = P # Total study hours in 10 days = 0.645 # 25 = 16.1 hours

We know, from the exponential and smoothing average method, the
exponential smoothed average u(t + 1) which is the forecast for the next period
(t + 1) is given by
u(t + 1) = ut + (1 ) ut 1 + ....... (1 ) n ut n + .......3
Now, for sales of the fifth month put t = 4 in the above equation,
So, u5 = u 4 + (1 ) u 3 + (1 ) 2 u2 + (1 ) 3 u1
where u1, u2, u 3 and u 4 are 70, 68, 82, and 95 respectively and = 0.4
Hence u5 = 0.4 # 95 + 0.4 (1 0.4) 82 + 0.4 (1 0.4) 2 # 68
+ 0.4 (1 0.4) 3 # 70

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u5 = 38 + 19.68 + 9.792 + 6.048 = 73.52

Given :
D = 800000 per annum
Co = 1200 Rs.
Ch = 120 per piece per annum
We know that,
Economic order quantity (EOQ ) = N = 2Co D
Ch
N = 2 # 1200 # 800000 = 16 106
120 #
= 4 # 10 = 4000
3

Given : Objective function, Z = 2x1 + 5x2
and x1 + 3x2 # 40
3x1 + x2 # 24
x1 + x2 # 10
x1 > 0
x2 > 0
First we have to make a graph from the given constraints. For draw the
graph, substitute alternatively x1 & x2 equal to zero in each constraints to
find the point on the x1 & x2 axis.
Now shaded area shows the common area. Note that the constraint
x1 + 3x2 # 40 does not affect the solution space and it is the redundant
constraint. Finding the coordinates of point G by the equations.
3x1 + x2 = 24
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x1 + x2 = 10
Subtract these equations,
(3x1 x1) + 0 = 24 10
2x1 = 14 & x1 = 7
x2 = 10 x1 = 10 7 = 3
So, point G (7, 3)
So, maximum profit which can meet the constraints at G (7, 3) is
Z max = 2 # 7 + 5 # 3 = 14 + 15 = 29

The various path and their duration are :-
Path Duration (days)

A-D -L 2 + 10 + 3 = 15
A-E -G -L 2 + 5 + 6 + 3 = 16
A-E -H 2 + 5 + 10 = 17
B -H 8 + 10 = 18
C -F -K -M 4 + 9 + 3 + 8 = 24
C -F -H 4 + 9 + 10 = 23
A-E -K -M 2 + 5 + 3 + 8 = 18
B -G -L 8 + 6 + 3 = 17
B -K -M 8 + 3 + 8 = 19
C -F -G -L 4 + 9 + 6 + 3 = 22
Here maximum time along the path C -F -K -M . So, it is a critical path and
project can be completed in 24 days.

The principal of motion economy are used while conduction a method study
on an operation.
Method study consist of the sequence of operation, which are performing
on a machine. From the sequencing, the idle time of the machine reduced
to a certain amount and the operation becomes faster and smooth. Also the
productivity of the plant increases by the principle of motion economy.

Standard Time = Normal time + Allowance

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Percentage Error E = 20% or 0.20

E # (1 E)
Standard deviation S =
n
where n = No. of observation
0.20 (1 0.20)
S = = 0.04
100
For 95% confidence level, = ! 2
So, upper control limit UCL = E + # S
= 0.20 + 2 # 0.04 = 0.28
Lower control Limit LCL = E # S
= 0.20 2 # 0.04 = 0.12
Hence 95% confidence interval of this estimate is (0.12, 0.28)

Given : Co = 200 Rs
D = 4000 units per annum
Ch = 10% of 100 = 10 Rs per annum
The Economic order quantity is,
EOQ = 2Co D = 2 # 200 # 4000 = 400 unit
Ch 10

Given :
Average time between arrivals = 10 min
Mean arrival rate (Number of arrivals per unit time) = 6 per hour
Average time between call = 3 min
Mean service rate = 60 = 20 per hour
3
So, the probability that an arrival does not have to wait before service is,
PO = 1 = 1 6 = 1 0.3 = 0.7
20

Total supply = 50 + 40 + 60 = 150 units
Total demand = 20 + 30 + 10 + 50 = 110 units
In this question, the total availability (supply) may not be equal to the total
demand, i.e.,
m n
/a i ! /b j
i=1 j=1
Such problems are called unbalanced transportation problems.
Here total availability is more than the demand. So we add a dummy

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destination to take up the excess capacity and the costs of shipping to this
destination are set equal to zero.
So, a dummy destination of capacity 40 unit is needed.

In PERT analysis, a Beta distribution is assumed because it is unimodal,
has non-negative end points, and is approximately symmetric.
Here three parallel paths are given. But the critical path is one with the
longest time durations.
Two paths have same time duration of 12.
So, mean = 12
The PERT analysis has a beta () distribution and Standard deviation
= variance = 4 = 2 .

Production flow analysis (PFA) is a comprehensive method for material
analysis, Part family formation, design of manufacturing cells and facility
layout design. These informations are taken from the route sheet.

The simple moving average method can be used if the underlying demand
pattern is stationary. This method include new demand data in the average
after discarding some of the earlier demand data.
Let mt = moving average at time t
yt = demand in time t and
n = moving average period
y yt n + 1
mt + 1 = t + 1
n

Given : Mean cycle time = 10 min
The workers performing at 90% efficiency.
So, Normal time = 10 # 90 = 9 min
100
Allowance = 10%
Standard time = Normal time + Allowance
= 9 + 9 # 10 = 9 + 0.9 = 9.9 min
100
************


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CHAPTER 11

YEAR 2012 ONE MARK

YEAR 2012 TWO MARKS

Common Data For Q.2 and Q.3

Activity Predecessors Durations (days)

MCQ 11.2 The critical path for the project is

PAGE 512 INDUSTRIAL ENGINEERING CHAP 11

project changes to 19 days.

YEAR 2011 ONE MARK

MCQ 11.5 The word kanban is most appropriately associated with

YEAR 2011 TWO MARKS

Common Data For Q.6 and Q.7

MCQ 11.7 The manufacturer can make a maximum profit of Rs.

CHAP 11 INDUSTRIAL ENGINEERING PAGE 513

(C) 150000 (D) 200000

YEAR 2010 ONE MARK

MCQ 11.9 Littles law is a relationship between

MCQ 11.10 Vehicle manufacturing assembly line is an example of

MCQ 11.11 Simplex method of solving linear programming problem uses

YEAR 2010 TWO MARKS

GATE Previous Year Solved Paper For Mechanical Engineering

PAGE 514 INDUSTRIAL ENGINEERING CHAP 11

Activity Precedence Duration (in days)

Common Data For Q.14 and Q.15

Job Processing time (in days) Due date

YEAR 2009 ONE MARK

GATE Previous Year Solved Paper For Mechanical Engineering

CHAP 11 INDUSTRIAL ENGINEERING PAGE 515

YEAR 2009 TWO MARKS

MCQ 11.19 Consider the following Linear Programming Problem (LPP):

MCQ 11.20 Six jobs arrived in a sequence as given below:

Jobs Processing Time (days)

GATE Previous Year Solved Paper For Mechanical Engineering

PAGE 516 INDUSTRIAL ENGINEERING CHAP 11

(A) 20.83 (B) 23.16

Common Data For Q.21 and Q.22

Activity Optimistic time Most likely time Pessimistic time

MCQ 11.22 The standard deviation of the critical path is

YEAR 2008 ONE MARK

GATE Previous Year Solved Paper For Mechanical Engineering

CHAP 11 INDUSTRIAL ENGINEERING PAGE 517

f (t) of the inter-arrival time is

Job Processing time

YEAR 2008 TWO MARKS

PAGE 518 INDUSTRIAL ENGINEERING CHAP 11

path from node P to node G .

(A) SG = Min {SQ, SR} (B) SG = Min {SQ dQG , SR dRG }

MCQ 11.28 The product structure of an assembly P is shown in the figure.

Estimated demand for end product P is as follows

Common Data For Q.29 and Q.30

GATE Previous Year Solved Paper For Mechanical Engineering

CHAP 11 INDUSTRIAL ENGINEERING PAGE 519

MCQ 11.30 The dual for the LP in Q . 29 is

YEAR 2007 TWO MARKS

MCQ 11.31 Capacities of production of an item over 3 consecutive months in regular

PAGE 520 INDUSTRIAL ENGINEERING CHAP 11

YEAR 2006 ONE MARK

GATE Previous Year Solved Paper For Mechanical Engineering

CHAP 11 INDUSTRIAL ENGINEERING PAGE 521