Model

Solutions for Mid-Sem Exam IE:503

Answer 1.

a) For given WS Cycle time at 100% Efficiency = 25 sec

!∗#$∗#$
No of products at 100% efficiency in 8 hr. shift = = 1152 units
%&
At 90%. Efficiency:-
No of product in 8 hr. shift = 0.9*1152 =1036.8 units.
!∗#$∗#$
Cycle time at 90% efficiency = = 27.77 sec.
($)#.!

b) WS-1= {1,2,3,4} = {5+6+5+8} =24 sec WS-2= {5,6,7} = {10+3+12} =25 sec
WS-3= {8, 9, 10} = {8+8+5} =21 sec WS-4= {11, 12} = {5+10} = 15 sec
We have 3 seconds worth automation in our hand to allocate.
We will select WS-2 first as it is the Bottleneck of the chain.
We will select any one of the 5, 6 or 7 and will reduce the operation time by 1 sec. Now WS-2
time is 24 sec.
Now both WS-1 and WS-2 have time of 24 seconds. We will select any one of operation
1/2/3/4 from WS-1 and will reduce its operation time by 1 sec and similarly for WS-2.

+,-./ ,012.-3,4 -351 (7.8190.4) !&
c) Lower Bound on Cycle Time = = = 21.25 sec
+,-./ ;,289-.-3,4 <

d) For 3 Work Stations,

+,-./ ,012.-3,4 -351 (7.8190.4) !&
Lower Bound on Cycle Time = = = 28.33 sec = 29 sec
+,-./ ;,289-.-3,4 )
The reasonable way of getting the best possible cycle time with 3 WS is Bin Packing problem
or Knapsack problem
In our case there are 3 knapsack/bins and we will order the operations in decreasing order of
time and putting the operations in these 3 knapsack/bins alternately.

Answer 2.

a) Typical facilities present at a bank are as follows:

1. Enquiry
2. Form Filling
3. Cashier (also called Teller)
4. Locker /ATM pins
5. Loans
6. Branch Manager

Relationship symbols used are as follows:
A: absolutely important/necessary
E: especially important
I: important and core
O: ordinary importance
U: unimportant
X: to be kept away from each other.


A typical relationship chart between facilities present at a bank are as follows:

b) We can use the principles of process based layout because if a customer enters a bank then
he may not be required to go through all the facilities. For example if a customer comes to
bank to withdraw money then he does not have to go to locker, loans or branch manager.

Answer 3.

Jobs 1 2 3 4 5 6
Processing times 4 6 2 3 5 2
Due Dates 8 8 12 12 20 20

a) Lateness of job j is 𝑙> = 𝑐> − 𝑑> ,

Where, 𝑐> is the completion time of job j and 𝑑> is the due date of job j.
6
Total lateness = 𝑗=1 𝑙𝑗 is minimised by sequencing the jobs according to SPT (shortest
processing time) rule.
Sequence= 3,6,4,1,5,2 𝑜𝑟 6,3,4,1,5,2. (Total lateness = -30).
b) The question should have read 𝑎 < 𝑏 < . . .. < 𝑓. For total lateness, the answer is the same
as in (a) and does not depend on the due dates. However, for maximum lateness, the the best
sequence is by sequencing them in increasing order of their due dates. i.e. = 1,2,3,4,5,6.
c) Number of tardy jobs can be minimised by following rule-
Schedule jobs in order of increasing due dates. When a job j gets late, remove the job with
largest processing time till that job j and put it in the end.

Jobs 1 2 3 4 5 6
Processing times 4 6 2 3 5 2
Due Dates 8 8 12 12 20 20
Completion time 4 10


Sequence = 1,3,4,5,6,2 has only 1 tardy job. And we will have at least 1 tardy job for any sequence.
Other sequences are also possible which have only 1 tardy job.

Answer 4.

Jobs 1 2 3 4 5 6
Processing times 4 5 7 3 5 6
Profit 5 6 9 4 6 8
Profit/Processing Time 1.25 1.2 1.28 1.33 1.2 1.33

a) Available time = 20
We will order the jobs in decreasing order of their profit per unit processing time = 4,6,3,1,2,5
and select the jobs till we have time left for processing. Recommended jobs are 4, 6, 3 and 1.
(Total time consumed on machine = 20)

b) 𝑥% + 𝑥< ≥ 1

Answer 5.

a) Demand (D) = 200

Price (P) = Rs 500
Ordering cost (Co) =Rs 300
Holding cost (Ch) = 30% of 500 = Rs 150 per piece annually.

%∗U∗VW %∗%$$∗)$$
EOQ = = = 28.28 units
VX (&$
We will order 28 units per order

Demand in 365 days is 200 pieces
%$$∗%!
Demand in lead time (28 days) = =15.34 = 16 pieces = Reorder Point
)#&

b) Total annual cost when we order 28 units at a time

𝑇𝐶( = 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 + 𝑂𝑟𝑑𝑒𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡
200 28
= 500 ∗ 200 + ∗ 300 + ∗ 150
28 2
= 𝑅𝑠 104242

Assuming annual holding cost per unit product does not change with discount.
Total annual cost when we order 200 units at a time:-
95 200
𝑇𝐶% = ∗ 500 ∗ 200 + 300 + ∗ 150
100 2
= 𝑅𝑠 110300
 Total annual cost when we order 250 units at a time:-
92.5 4 250
𝑇𝐶) = ∗ 500 ∗ 200 + ∗ 300 + ∗ 150
100 5 2
= 𝑅𝑠 111490

Hence, 𝑇𝐶( < 𝑇𝐶% < 𝑇𝐶)

We will not change the ordering quantity. Even if we consider the change in annual per unit holding
cost due to discount offered, the result comes out to be same.