OM Assignment II (2020 -22)

1. The following table gives the information relating to the various activities concerning a project.
Draw up a network diagram
Determine the critical path
Find the total float free float and independent float for the various activities.

Name of the Pre-requisite Time estimated

Activity Activity (in days)
A NONE 2
B A 3
C A 4
D B&C 6
E NONE 2
F E 8

2. Find out the critical path through a network diagram also find slack and float of the following.
Activity : 1-2 1-3 2-3 2-4 3-4 4-5
Time : 20 25 10 12 6 10
3. A small project is composed of seven activities, whose time estimates are listed in the table as follows: You
are required to find the expected duration and variance of each activity. What is the probability that the
project will be completed
 4 weeks earlier than expected?
 Not more than 4 weeks later than expected?

ACTIVITY OPTIMISTIC TIME MOST PROBABLE TIME PESSIMISTIC TIME

1-2 1 1 7
1-3 1 4 7
2-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15

4. The optimistic, most probable, and pessimistic times (in days) for completion of activities for a certain
project are as follows:

ACTIVITY IMMEDIATE OPTIMISTIC MOST PROBABLE PESSIMISTIC

PREDECESSOR TIME TIME TIME
A - 4 5 6
B - 6 8 10
C A 6 6 6
D B 3 4 5
E B 2 3 4
F C,D 8 10 12
G E 6 7 8
H C,D 12 13 20
I F,G 10 12 14
a) Find the critical path.
b) Find the probability that all critical activities will be completed in 35 days or less.

5. Listed in the table are the activities and sequencing requirements necessary for the completion of a research
report. Draw up a network diagram, Determine the critical path also find the total float free float and
independent float for the various activities.

Name of the Description Pre-requisite Time estimated

Activity Activity (in weeks)
A Literature search NONE 6
B Formulation of NONE 5
hypothesis
C Feasibility study B 2
D Formal proposal C 2
E Field analysis A and D 2
F Progress report D 1
G Formal research A and D 6
H Data collection E 5
I Data analysis G and H 6
J Conclusions I 2
K Rough draft G 4
L Final copy J and K 3
M Presentation L 1

6. A small project is composed of seven activities, whose time (in term of weeks) estimates are listed in the
table as follows: You are required to find the expected duration and variance of each activity. What is the
probability that the project will be completed 5 weeks earlier than expected time?

ACTIVITY Predecessor OPTIMISTIC MOST PROBABLE PESSIMISTIC

TIME TIME TIME
A - 1 3 7
B A 2 6 14
C A 3 3 3
D B,C 4 10 22
E B 3 7 15
F D,E 2 5 14
G D 4 4 4

7. Distinguish between PERT and CPM, explain why both the methods are widely applied management science
technique?
8. What are the types of inventory? Why they are maintained? Explain the various costs related to inventory.
9. Explain ABC analysis. What are its advantages and limitations? If any?
10. The details of material stocked in a company are given below with the unit cost and the annual consumption
in Rs. Classify the material in to A class, B class and C class by ABC analysis.
11. XYZ Co. produces fertilizer to sell to wholesalers. One raw material that is calcium nitrate is
purchased from a nearby supplier at Rs.22.50 per ton. XYZ estimates it will need 5,750,000 tons of
calcium nitrate next year. The annual carrying cost for this material is 40% of the acquisition cost,
and the ordering cost is Rs. 595.
a) What is the most economical order quantity?
b) How many orders will be placed per year?
c) How much time will elapse between orders?
d) What is the value of total stocking cost?
12. Given the information below, what are the EOQ and reorder point? Annual Demand is 1,000 units,
Days per year considered in average daily demand is 365 Cost to place an order is Rs10, Holding
cost per unit per year is Rs2.50, Lead time is 7 days, and Cost per unit is Rs15

13. Determine the EOQ and the reorder point given the following, Annual Demand is 10,000 units. Days
per year considered in average daily demand is 365. Cost to place an order is Rs10. Holding cost per
unit per year is 10% of cost per unit. Lead time is 10 days. Cost per unit is Rs15.

14. A manufacturer of colour televisions has a final inspection before the product is packed for
shipping. The final inspection involves testing the television on several parameters and verifying if
the set performs satisfactorily in all the tests. It is possible that every television may fail to fulfill all
the parameters. Therefore a C and P chart is used at this stage to control the process. Periodically,
10 times television sets are drawn in a lot of 100 for testing. The table below gives the
performance during one such test. Use this data to set up a control chart.

Sample no Number of defects (c)

1 11
2 9
3 12
4 9
5 12
6 22
7 7
8 10
9 13
10 6