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Open Practice Test Series
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ME : MECHANICAL ENGINEERING
AD

Test No - 11 | Industrial Engineering

Read the following instructions carefully

1. This question paper contains 33 MCQ’s & NAQ’s. Bifurcation of the questions are given below:
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1 to 9 Multiple Choice Ques. 9 1 9 0.33

10 to 16 Numerical Data Type Ques. 7 1 7 None

17 to 25 Multiple Choice Ques. 9 2 18 0.66

26 to 33 Numerical Data Type Ques. 8 2 16 None

Total Questions : 33 Total Marks : 50 Total Duration : 90 min

2. Choose the closest numerical answer among the choices given.

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Multiple Choice Questions : Q.1 to Q.9 carry 1 mark each

Q.1 In a forecasting model, at the end of period 13, the forecasted value for period 14 is 75. Actual value in
the periods 14 to 16 are constant at 100. If the assumed simple exponential smoothing parameter is
0.5, then the MSE at the end of period 16 is
(a) 820.31 (b) 273.44
(c) 43.75 (d) 14.58

1. (b)
Ft = Ft – 1 + α ( Dt – 1 – Ft – 1)
F14 = 75, D14 = 100, α = 0.5
F15 = 75 + 0.5(100 – 75) = 87.5
F16 = 87.5 + 0.5(100 – 87.5) = 93.75

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Now
(Error)142 = (25)2 = 625
(Error)152 = (12.5)2 = 156.25
(Error)162 = (6.25)2 = 39.06

625 + 156.25 + 39.06

MSE = = 273.44

Q.2
EA 3

In an ideal inventory control system, the economic lot size for a part is 1000. If the annual demand for
the part is doubled, the new economic lot size required will be
(a) 500 (b) 2000
1000
(c) (d) 1000 2
2
E

2. (d)
2DC0
EOQ =
Ch
AD

2 × 2DC0
EOQ2 =
Ch

∴ (EOQ)2 = 2 EOQ1 = 1000 2

Q.3 Large size of inventory is a sign of :

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(a) Better planning (b) Inefficiency

(c) Reliable control of vendors (d) Better scheduling

3. (b)
Large size of inventory is a sign of
• poor scheduling
• inefficient planning
• vendors are not well-coordinated

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Q.4 The expected time (te) of a PERT activity in terms of optimistic time (to), pessimistic time (tp) and most
likely time (tl ) is given by
t o + 4t l + t p t o + 4t p + t l
(a) te = (b) te =
6 6

t + 4tl + tp to + 4tp + tl
(c) te = o (d) te =
3 3
4. (a)
The expected time (te ) of PERT activity in terms of optimistic time (to), pessimistic time (tp) and most
likely time (tl ) is given by,
to + 4tl + tp
te =

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6
Q.5 The jobs arrive at a facility, for service, in a random manner. The probability distribution of number of
arrivals of jobs in a fixed time interval is
(a) Normal (b) Poisson
(c) Erlang (d) Beta

5.

Q.6
(b)
EA
The word kanban is most appropriately associated with
(a) economic order quantity (b) just-in-time production
(c) capacity planning (d) product design

6. (b)
Kanban is related to quality and this concept is used in just in time production i.e. zero inventory.
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Q.7 If there are m sources and n destinations in a transportation matrix, the total number of basic variables
in a basic feasible solution is
(a) m + n (b) m + n + 1
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(c) m + n – 1 (d) m

7. (c)

Q.8 Consider the following Linear Programming Problem (LPP):

Maximize z = 3x1 + 2x2
Subject to x1 ≤ 4
x2 ≤ 6
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3x1 + 2x2 ≤ 18
x 1 ≥ 0, x 2 ≥ 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 solution

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8. (d)
Linear Programming Problem (LPP)
Maximize, z = 3x1 + 2x2
Constraints x1 ≤ 4 ... (i)
x2 ≤ 6 ... (ii)
3x1 + 2x2 ≤ 18 ... (iii)
x 1 ≤ 0, x2 ≤ 0 ... (iv)
Using graphical method
x2

x2 = 9

C (2, 6)

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x2 = 6
D

Feasible region
EA B (4, 3)

x1
0 A x1 = 4
x1 = 6

Because objective function have slope same as constraint (iii) i.e. objective function is parallel to
constraint. Therefore the LPP has multiple optimal solution.
For example at point B,
E

Maximum, z = 3x1 + 2x2

= 3(4) + 2(3) = 18
and at point C,
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Maximum, z = 3(2) + 2(6) = 18

Q.9 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
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(d) exponential smoothening method

9. (d)
Exponential smoothing methods of forecasting takes a fraction of forecast error into account for next
period forecast.
Ft = Ft –1 + α (Dt –1 – Ft –1)
Ft = Ft –1 + α et
where, Ft is the forecast at time t
Dt is the actual demand at time t
Ft –1 is the forecast at time t – 1
α is the smoothing coefficient
et = Dt –1 – Ft –1, is forecast error

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The value of α varies between 0 and 1, with commonly used value of 0.01 to 0.30.
New estimate = Old estimate of latest actual demand + α [latest actual demand – old
estimate of latest actual demand]
Exponential smoothing provides a convenient, systematic and recursive method of revisiting the forecast
for the next period whenever discrepancy exists between the previously forecast demand for current
period and the actual demand for current period.

Numerical Answer Type Questions : Q. 10 to Q. 16 carry 1 mark each

Q.10 An organization has decided to produce a new product. Fixed cost for producing the product is estimated
as `10000. Variable cost for producing the product is ` 90. Market survey indicated that the product
selling price could be ` 200. The break even quantity is __________ units.

10. (91
(91)) (90 to 91)

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At break even point
Fixed cost + Variable cost = Sales
10000 + 90 x = 200 x
⇒ x = 90.90 units

Q.11 The forecast for the 4th period, according to data given below, is ___________ units.
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Period Actual demand Weightage
(units)
1 100 0.2
2 90 0.3
3 100 0.5

11. (97
(97)) (no range)
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F4 = (0.2 × 100) + (0.3 × 90) + (100 × 0.5)

F4 = 97 units
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Q.12 An activity has three time estimates as optimistic time (t 0) = 10, most likely time (tm ) = 20 and
pessimistic time (tp ) = 20. The correct value for variance is _________.

12. (2.7
(2.777 ) (2.50 to 2.89)
2
⎛ t p − to ⎞ ⎛ 20 − 10 ⎞
2
Variance = ⎜ = ⎟ = 2.77
⎝ 6 ⎟⎠ ⎜⎝
6 ⎠
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Q.13 It is given that actual demand is 65 units, a previous forecast 60 units and smoothening factor 0.3.
Using exponential smoothing method. The forcast for next period will be ____________ units.

13. (61.5)(61 to 62)

Ft = Ft – 1 + α (Dt – 1 – Ft – 1)
= 60 + 0.5(65 – 60)
= 61.5 units

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Q.14 Consider an inventory system with the following data :

Annual demand : 1000 units
Per unit carrying cost : ` 1.2
Ordering cost : ` 50
The number of order per year is _____________.

14. (4
(4)) (3.2 to 4.3)
Given, D = 1000
C0 = ` 50
Ch = ` 1.2
2DC0 2 × 1000 × 50
Q* = = = 288.7 units
Ch 1.2

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D 1000
Number of order per year = = = 3.46  4
Q * 288.7

Q.15 The time study data of a lathe in a factory during a calender month is given below :
Total working hours = 400
Total maintenance hours = 100
Total hours of actual work = 240
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The percentage utilization of the equipment is ______________ %.

15. (80
(80)) (No range)
Available working hour = 400 – 100 = 300
Actual worked hours = 240

240
Percentage utilization = × 100 = 80%
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300

Q.16 ABC company plan to sell an article at a local market. The article is purchased at ` 5. The rent for the
space is ` 2000. The article will be sold at ` 9. If the company sells 750 articles, the margin of safety
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will be _____________ %.

16. (33.
(33.33 )(33 to 34)

F 2000
BEP = = = 500 units
S −V 9 − 5

Sales − Sales at BEP

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Margin of safety = × 100

Sales
750 − 500
= × 100 = 33.3%
750

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Multiple Choice Questions : Q.17 to Q.25 carry 2 marks each

Q.17 The data for break-even analysis of a product are given as fixed cost is ` 10000 variable cost is
` 10/unit, selling price is ` 15/unit. The break even volume (in units) is
(a) 2000 (b) 2500
(c) 3500 (d) 4000

17. (a)
F = ` 10000
V = ` 10 per unit
S = ` 15 per unit
Let the break even volume is Q *
S × Q* = F + V × Q *

SY
F 10000
Q* = =
S − V 15 − 10
Q * = 2000 units

Q.18 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 @
EA
600 pieces per day only. The company makes a profit of ` 3 and ` 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

18. (a)
Given P + 2Q ≤ 2000 ...(i)
P + Q ≤ 1500
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... (ii)
Q ≤ 600
Objective function
AD

zmax = 3P + 5Q

(0, 1500)
2

(0, 1000)
A (800, 600)
3
(0, 600)
B (1000, 500)
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(1500,0) (2000,0)
P
At point A z = 3 × 800 + 600 × 5 = 5400
At point B z = 3 × 1000 + 5 × 500 = 5500
Hence z to be maximum at (1000, 500)

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Q.19 While solving a linear programming problem by simplex method, if all ratios of the right-hand side (bi)
to the coefficient, in the key row (aij) become negative, then the problem has which of the following
types of solution?
(a) An unbound solution (b) Multiple solutions
(c) A unique solution (d) No solution

19. (a)
While solving a linear programming problem by simplex method, if all the ratios of the right hand side
(bi) to the coefficient in the key row (aij) become negative, it means problem is having unbounded
solution.

Q.20 For the network shown in the given figure, the earliest expected completion time of the project is
5
B E 8

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H
5 5 10
4
A 4 F
C
10
3 0 8

(a) 26 days
EA D

(b) 27 days
7
G

(c) 30 days (d) Indeterminate

20. (c)
5 5 22 22
5
B E 8
H 30 30
E
5
4 5 10
A 4 F
C 9 9
0 0 17 17 10
AD

0 8
3

D G
7
9 9 16 20

∴ project duration is 30 days

Q.21 An operations consultant for an automatic car wash wishes to plan for enough capacity to handle
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60 cars per hour. Each car will have wash time to 2 minutes, but there is to be a 20% allowance for
setup, delays and payment transactions. The installation capacity of car wash stalls should be:
(a) 3 (b) 4
(c) 5 (d) 6

21. (a)
Time required to wash one car is 2 × 1.2 = 2.4 mins.
Number of cars washed in 1 hr in 1 stall
60
= = 25
2.4
60
∴ No of stalls = = 2.4  3
25

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Q.22 Match List-I with List-II and select the correct answer using the codes given below the lists:
List-I List-II
A. Critical activity to be crashed 1. It has negative float
B. Critical activity 2. It has least cost slope
C. Dummy activity 3. It maintains logic of network
D. Super-critical activity 4. It has no float
Codes:
A B C D
(a) 1 4 3 2
(b) 3 4 1 2
(c) 2 4 3 1
(d) 4 3 1 2

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22. (c)

Q.23 Consider the following linear programming problem:

Maximize z = 4x + 3y
Subjects to the constraints:
2 x + y ≤ 1000
x + y ≤ 800
x ≥ 0, y ≥ 0
What can one say about the solution ?
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(a) Unbounded solution (b) Unique optimal solution
(c) Alternative optimum solution (d) Degenerate solution

23. (b)
y
E

1000
A
800
(200, 600)
B
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600

400

200
C
D x
200 400 600 800 1000
ZA = 4 × 0 + 3 × 800 = 2400
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ZB = 4 × 200 + 3 × 600 = 2600

ZC = 4 × 500 + 0 × 3 = 2000
ZD = 0
From the graph, we can conclude that, the problem has unique optimum solution.

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Q.24 A firm is required to procure three items (P, Q and R ). The prices quoted for these items (in `) by
suppliers S1, S2 and S3 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 `) of
procurement to the firm is

Item Supplier

S1 S2 S3
P 60 95 105
Q 85 70 110
R 90 100 80

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(a) 200 (b) 210
(c) 250 (d) 230

24. (b)
S1 S2 S3
P 60 95 105
EA Q
R
85
90
70
100
110
80
Step 1 : Subtract minimum entry in each row from all the entries on that row,
S1 S2 S3
P 0 35 45
Q 15 0 40
E

R 10 20 0
Step 2 : Making the assignment
AD

0 35 45

15 0 40
10 20 0

The minimum cost = 60 + 70 + 80 = ` 210

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Q.25 The demand for a product in the month of March turned out to be 30 units against an earlier made
forecast of 30 units. The actual demand for April and May turned to be 35 and 36 units respectively.
What will be the forecast for the month of June, using exponential smoothing method and taking
smoothing constant α as 0.2.
(a) 32 (b) 30
(c) 36 (d) 38

25. (a)
FApril = FMarch + α (DMarch – FMarch)
F April = 30 + 0.2(30 – 30) = 30
FMay = FApril + α(DApril –FApril )
= 30 + 0.2(35 – 30) = 31

SY
FJune = FMay + α (DMay – FMay) = 31 + 0.2 (36 – 31) = 32

Numerical Answer Type Questions : Q. 26 to Q. 33 carry 2 marks each

Q.26 In an ideal inventory control system, the economic lot size for a part is 100. If the annual demand for
the part is increased by 4 times and holding cost increases by 2 times, the new economic lot size
EA
required will be _________.

26. (141.42) (141 to 142)

D
Q* ∝
Ch

4D
Q1* ∝
2Cn
E

Q1*
⇒ = 2
Q*
AD

⇒ Q1* = 100 2 = 141.42

Q.27 Consider an item with the following characteristics :

Demand = 200 units per year
Unit cost = ` 20
Inventory carrying cost = 20% of unit cost
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Ordering/ Procurement cost = ` 15/order

Shortage cost = ` 2/unit/year
Based on these data, the time duration between each order is __________ months.

27. (4.02) (3.7 to 4.5)

2DCo ⎛ Ch + C b ⎞ 2 × 200 × 15 ⎛ 0.2 × 20 + 2 ⎞
Q = ⎜⎝ C ⎟⎠ = ⎜ ⎟⎠ = 67.08 units
Ch b 0.2 × 20 ⎝ 2
⎛D⎞
N = ⎜⎝ ⎟⎠
Q

1 ⎛ Q ⎞ 67.08
T = =⎜ ⎟ = = 0.335 year = 4.02 months
N ⎝D⎠ 200

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Q.28 The earliest time of the completion of the last event in the below network (in weeks) is __________.
11
4 24
9
8 14
16 10 6
1 12 20 28
7 17
13 20
8 16
5

28. (46) (No range)

8 26 33 37
11
4 24

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9
8
0 0 16 16 14 40 40 46 46
16 10 6
1 12 20 28
7 17
13 20
8 16
5
13 18 23 23

Earliest time of completion = 46 Weeks

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Q.29 The table below shows processing times (in minutes) of different jobs on different machines.
Jobs M1 M2
A 5 9
B 3 7
E

C 4 5
D 2 6
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The optimum make-span time of the shop is ___________ minutes.

29. (29)
By solving the problem by normal procedure, we get the order as, D – B – C – A. This sequence has to
be projected on the original machines.

M1 M2
In Out In Out
M

D 0 2 2 8
B 2 5 8 15
C 5 9 15 20
A 9 14 20 29
Optimum Make Span Time = 29 minutes

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Q.30 Consider the following data for the demand of shirts (units) over the past 5 periods.
Period 1 2 3 4 5
Demand 9 11 10 12 13
The magnitude difference between 3-periods and 5 periods moving average forecasts for the sixth
period is _____________ units.

30. (0.67) (0.65 to 0.69)

The 3 period moving average forecast (F61)
D3 + D4 + D5 10 + 12 + 13
F61 = = = 11.67
3 3
The 5 period moving average forecast (F62 )
D1 + D2 + D3 + D4 + D5

SY
F62 = = 11
5
F61 – F62 = 11.67 – 11 = 0.67 units
Q.31 Time estimates of an activity in a PERT network are :
Optimistic time (t 0) = 9 days; Pessimistic time (tp ) = 21 days and Most Likely Time (tm) = 15 days. The
approximate probability of completion of this activity in 15 days is _______ %.
EA
31. (50)(No range)
to + 4tm + tp 9 + (4 × 15) + 21
Texpected = = = 15 days
6 6
b − a 21 − 9
Standard deviation (S.D.) = = =2
6 6
x − x 15 − 15
Z = = =0
σ 2
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p (o) = 0.5  50%

Q.32 The MAD for the following forecasting data will be ___________.
AD

Time Demand Forecast

1 150 165
2 160 165
3 165 165
4 175 165
5 180 165
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32. (9
(9)) (No range)
n
∑ Dt − Ft
t =1
MAD =
n
15 + 5 + 0 + 10 + 15 45
MAD = = =9
5 5
Q.33 In order for a transportation matrix which has 6 rows and 5 columns, not to be degenerate, then the
number of allocated cells in the matrix are ___________.
33. (10
(10)) (No range)
Number of allocated cells = 6 + 5 – 1 = 10



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