1.

i.
ii.
iii.
iv.
2.

CRITICAL PATH METHOD (CPM)

PROJECT EVALUATION REVIEW TECHNIQUE (PERT)
A small assembly plant assembles PCs through 9 interlinked stages according to following
precedence/ process.
Stag
12 13 14 24 25 36 46 57 67 68 78 89
e
Time
4
12
10
8
6
8
10
10
0
8
10
6
(Hrs)
Draw a arrow diagram (network) represents above assembly work
Tabulate earliest start, earliest finish, latest start, latest finish time for all the stages
Find the critical path and the assembly duration.
Tabulate the total float, free float and Independent float for each stage.

The owner of fast-food restaurants is considering a new computer system for accounting
and Inventory control. A computer company sent the following information about the
system Installation:
Duration ( in days)
Immediate
Activity
Description
Predecessor
a
m
b
A
Select the computer model
4
6
8
B
Design input/output system
A
5
7
15
C
Design monitoring system
A
4
8
12
D
Assemble computer hardware
B
15
20
25
E
Develop the main programme
B
10
18
26
F
Develop input/output routines
C
8
9
16
G
Create data base
E
4
8
12
H
Install the system
D, F
1
2
3
I
Test and implementation
G, H
6
7
8
a) Construct an arrow diagram for this problem
b) Determine the critical path and compute the expected project completion time
c) Determine the probability of completion the project in 55 days

3. The following table lists the jobs of a network along with their time estimates:
Job
12 16 23 2- 4 35 45 67 5-8 78
Optimistic time (in days)
3
2
6
2
5
3
3
1
4
Most likely time (in days)
6
5
12
5
11
6
9
4
19
Pessimistic time (in days)
15 14
30
8
17
15
27
7
28
a. Draw the project network diagram and calculate the critical path.
b. Find probability that the project will be completed in (i) 5 days earlier than
expected, (ii) 5 days later than expected
4.

Consider the following data for the activities concerning a project:

Activity
Immediate Predecessors
Estimate time (weeks)

A
3

B
5

C
4

D
A
2

E
B
3

F
C
9

G
D, E
8

H
B
7

I
H, F
9

1.

Find the critical path and float values for the each activity.
SEQUENCING PROBLEM
Six jobs go first over machine A and then over machine B. The order of completion of
jobs has no significance. The following table gives the machine times in hours for six jobs
and the two machines:
Job No.
1
2
3
4
5
6
Time on Machine A
5
9
4
7
8
6
Time on Machine B
7
4
8
3
9
5
Find the sequence of jobs that minimizes the total elapsed time to complete the jobs. Find
the minimum time by using Gnatts Chart or by any other method.

2.

Find the sequence that minimizes the total elapsed time required to complete the following
tasks on two machines:
Task
Machine I
Machine II

3.

B
5
8

A
3
4
6

B
8
3
7

D
9
4

E
6
3

F
8
9

G
7
3

H
5
8

I
4
11

C
7
2
5

D
4
5
11

E
9
1
5

F
8
4
6

G
7
3
12

Solve the following sequencing problem, giving an optimal solution when passing is not
allowed:
Job
Machine M1
Machine M2
Machine M3
Machine M4

5.

C
4
7

Determine the optimal sequence of jobs that minimizes the total elapsed time based on the
following information processing time on machines is given in hours and passing is not
allowed:
Job
Machine M1
Machine M2
Machine M3

4.

A
2
6

A
10
3
5
14

B
12
2
6
7

C
8
4
4
12

D
15
1
7
8

E
16
5
3
10

Use graphical method to minimize the time needed to process the following jobs in the
machines shown (ie., for each machine find the job which should be done first). Also the
total time elapsed to complete both the jobs:

Job 1

Sequence
Time

A
3

B
4

Machines
C
2

D
6

E
2

Job 2

Sequence
Time

B
5

C
4

A
3

D
2

E
6

(d) Using simple linear regression analysis, calculate the regression equation for
the preceding demand data.
(e) Using the regression equation in (d), calculate the forecast for July.

FORECASTING
1
.

2
.

3
.

4
.

5
.

A firm uses simple exponential smoothing with =0.3 to forecast demand. The
forecast for the first week of January was 500 units, whereas actual demand turned out
to be 450 units.
a) Forecast the demand for the second week of January
b) Assume that the actual demand during the second week of January turned out to
be 550 units. Forecast the demand up to February third week, assuming the
subsequent demands as 475, 450, 470, 525 and 470 units.
For the following table represents sales data for liters of milk (in hundreds) sold by a
milk booth.
Mont
1
2
3
4
5
6
7
8
9
10
11
12
h
Sales
96 106 92 114 108 98 99 115 106 91
102 99
(a) Use single exponential smoothing to forecast demand, with = 0.20 and
initial forecast of 100 liters.
(b) Use trend adjusted exponential smoothing to forecast sales through period 13
for the following data. Use an = 0.30 and = 0.50, an initial base of 29.0
and a trend of 1.0.
Exponential smoothing is used to forecast automobile battery sales. Two value of are
examined,
and
Evaluate the accuracy of each smoothing constant. Which is
preferable? (Assume the forecast for January was 22 batteries.) Actual sales are given
below:
Month
January February
March
April
May
June
Actual Battery Sales
20
21
15
14
13
16
Use the sales data given below to determine: (a) the least squares trend line, and (b)
the predicted value for 2014 sales.
Mon 200 200 200 201 201 201 201
th
7
8
9
0
1
2
3
Sale 100 110 122 130 139 152 164
s
Historical demand for a product is
Month
January
February
March
April
May
June
Demand
12
11
15
12
16
15
(a) Using a weighted moving average with weights of 0.60, 0.30, and 0.10, find
the July forecast.
(b) Using a simple three-month moving average, find the July forecast.
(c) Using single exponential smoothing with = 0.2 and a January forecast = 13,
find the July forecast. Make whatever assumptions you wish.

ABC ANALYSIS
Prioritization Of The Management Attention
Inventory optimization is critical in order to keep costs under control within the
supply chain. Yet, in order to get the most from management efforts, it is efficient to focus
on items that cost most to the business.
The Pareto principle states that 80% of the overall consumption value is based on only
20% of total items. In other words, demand is not evenly distributed between items: top
sellers vastly outperform the rest.
In supply chain, ABC analysis is an Inventory Categorization Method which consists in
dividing items into three categories, A, B and C basing its ratings on the following rules:
(a) A-items are goods which annual consumption value is the highest. The top 70-80%
of the annual consumption value of the company typically accounts for only 10-20%
of total inventory items.
(b) C-items are, on the contrary, items with the lowest consumption value. The lower 5%
of the annual consumption value typically accounts for 50% of total inventory items.
(c) B-items are the interclass items, with a medium consumption value. That 15-25% of
annual consumption value typically accounts for 30% of total inventory items.
Through this categorization, the supply manager can identify inventory hot spots, and
separate them from the rest of the items, especially those that are numerous but not that
profitable.
1 What is selective Inventory control? From the following details, draw a plan of ABC
.
selective control:
Item Annual
Unit cost (in Item Annual
Unit cost (in
Consumption
Rs.)
Consumption
Rs.)
( in units)
( in units)
1
7,000
5.00
7
60,000
0.20
2
24,000
3.00
8
3,000
3.50
3
1,500
10.00
9
300
8.00
4
600
22.00
10
29,000
0.40
5
38,000
1.50
11
11,500
7.10

2
.

6
40,000
0.50
12
4,100
6.20
The following information is known about a group of items. Classify the material in A,
B and C classification
Model Number
Annual Consumption ( in pieces)
Unit Price (in paise)
501
30,000
10
502
2,80,000
15
503
3,000
10

504
505
506
507
508
509
510

1,10,000
4,000
2,20,000
15,000
80,000
60,000
8,000

5
5
10
5
5
15
10