MS3520 -Opera tions Manage ment
23 Nov 2023; 3 hours; 60 marks
1. Th e Spo ns core of saarang is looking at the spons amounts of the last six ye arstofo
for the next year event. The data (cooked up) is
recast
She wishes to fit a linear model to forecast the sponsors hip amount for 2024
and 202s. Find
the forecasts .
She also wishes to explore a quadrati c model for the form Y = a + bt +ct?.. Write
the three
equation s to get a, band c. (Hint: Different ~ate the error sum of squares term
wrt a, band c;
Do not provide a solution for the quadrati c case) (6 + 2 = 8 marks)
2. "Tasty Night Coffee" a newly opened popular shop orders high premium "Kaapi
Podi" from a
single distribut or (who buys from a warehou se). This "podi" is used exclusive
ly to prepare
premium coffee "Mug or Cup" which is a big hit in IIT (only during exam nights).
The demand
for the shop (retailer) is 5000 kg/year (which is also the distribut or demand) .
The ordering
costs for the retailer and distribut or are Rs 500 and 400 respectively. The unit
price of the
item is Rs 300 and Rs 250 for retailer and distribut or respectively. Both operate
with i = 20%.
(a) Find the individua l order quantitie s and the costs if both operate at their EOQ?
(b) If both agree to merge the orders (the inventor y cycles merge) and each saves
Rs
100 on Co, what is the optimal order quantity and the gain to each?
(c) If you are the retailer, would you agree that the distribut or has an advantag
e
because he actually incurs no inventory cost-. he simply forwards stock from
warehouse to you. Would you ask for a discount (on what basis) and how much?
(3 + 3 + 2 = 8 marks)
3. Consider a single item with D = 20000/year, Co= 1000 units, C, = iC = 20% of Rs 50.
Lead_
Time= 1-weel<ancflead timeaem and is uniform between fooand 500. The company
wis~s
to have a service level of 95%. The company has a budget restriction (sum of cycle
inventory
and safety stock) of Rs 44000. Compute the ordering quantity Q, safety stock and
the total
annual cost considering the budget restriction? (Cs= Rs 100/unit short)
(6 marks)
4. Consider a comp stud IITian who has taken up seven software jobs during his free
time
during the summer break. The processing times and the due dates (times) are 32,
24, 19, 27,
29, 17, 23 and 40, 50, 70, 60, 90, 120,110 respectively The revenue from a job is $10
per
unit processing time (If he finishes job 1 he earns $320 and so on). He loses 10% of
the
revenue of every tardy job (if jobl is tardy, he loses 10% of $320), gains an additiona
l 5% of
the revenue for every early job (if job 1 is finished earlier than its due date. earns a_D
additional 5% of $320) and loses 5% for every time unit tardy (If the total tardiness
is 100
units, he loses $50, which is 5% ofthe revenue equivalent t~ 100 units). There are
additional
operating expenses which are dependent on the time the job is with him. These ~rge
s
are 2.5% of the revenue associated with the sum of the times the Jobs spend in the
system
(All jobs arrive at time = 0)
Provide your solution to maximize net profit. (You will get 2 additional marks if you
can show
a revenue~ $1400) (7 marks)
5. The editorial group of "The sixth Estate" have to include five articles in their next
edition,
There are th ree memb_ers in th e group (A, M and X). Each article has three activities
(writing,
editing and layout) which have to be done sequentially Member At k h
• a es up a11 t e wrr•t·mg,
MS3520 -Operations Management
23 Nov 2023; 3 hours; 60 marks
M takes up editing and X the layout. Each person does only one article at a time. The times
are: l,~.:,;,-
Article Writing Editing Layout _
J1 8
J2
- - - 10 1' --
9
-
----·- 7 2 7
J3
- -- ----- -
- - 9 3 19
--
J4 6
-
- - - - -
12 6
-
30 \1 t-i ':f.
(a) Find a LB to the makespan (time at which the issue is released)
(b) They solve a branch and bound algorithm and somewhere in the middle they have a
partial sequence Jl-J3. Find the LB for this sequence?
(c) Find the solution using the CDS heuristic? Measure the goodness of the solution?
(d) The editing department feels that the editing time of the first job can be reduced by 3
units? Would a CDS solution be optimal in this case? (Don't solve)
(3 + 3 + 4 + 1 = 11 marks)
6. You are given a job shop scheduling problem with the following data
J1 - Ml (9), M2 (10), M3 (12)
J2 - M3 (8), Ml (8), M2 (10)
J3 - M2 (6), Ml (12), M3 (7)
(a) Find the makespan using SPT rule?
(b) Draw the network incorporating the Job sequence on Ml and M2 from the Gantt
chart. Find the new bound on the makespan? (7 marks)
7. As part of "Continuous Improvement" under the ISO certification, the CoAS is considering
applying project management ideas in Shaastra. The relevant data is shown below.
-
Activity Preceding Duration Resource Activity Preceding Du ration Resource
Activity Activity
~----- - --
A -- 6 3 F D,E 5 2
- - - - -- - - -- - -
4 2 G D,E 7 1
B
- ---- - - - ----- --- - - - --
C A 8 2 H B 12 2
- - --- - - ---- -~ -
D A 4 1 I C,F 5 2
f--
E B 5 3
·-
(a) Find the critical path and its duration?
(b) Assume that there are 4 resources available. Use a dispatching rule for the Resource
constrained Project Scheduling problem and find the duration under resource
restrictions?
(4 + 4 = 8 mar ks)
</) Write brief answers (not more than 3 lines) for the following
(c) What is Minimum slack in the context of dispatching rules?
(d) What is a "non delay" schedule?
(e) Where is the "CRAFT" algorithm used?
(f) What is "smoothness index"
(g) What is ABC analysis?
(5 marks)
