Industrial Engineering

INDUSTRIAL
ENGINEERING
For
MECHANICAL ENGINEERING
INDUSTRIAL ENGINEERING
Production Planning and Control: Forecasting models, aggregate production
planning, scheduling, materials requirement planning.
Inventory Control: Deterministic and probabilistic models; safety stock inventory
control systems
Operations Research: Linear programming, simplex and duplex method,
transportation, assignment, network flow models, simple queuing models, PERT and
CPM.
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CONTENTS
Topics Page No
1. FORECASTING
1.1 Definition 01
1.2 Type of Forecasting 01
1.3 Categories of Forecasting Method 01
1.4 Forecasting Error 03
2. INVENTORY CONTROL
2.1 Introduction 04
2.2 Inventory Control 04
2.3 Costs Associated With Inventory 05
2.4 Economic Order Quantity 05
2.5 Inventory Models 06
3. PROJECT MANAGEMENT (CPM & PERT)
3.1 Introduction 09
3.2 Terms Related With Project Management 09
3.3 Critical Path Method 10
3.4 Programme Evaluation & Review Technique 10
4. PLANT LAYOUT
4.1 Introduction 12
4.2 Production System 13
5. LINE BALANCING
5.1 Introduction 14
5.2 Some Important Definitions 14
5.3 Important Parameters in Line Balancing 14
6. SEQUENCING MODEL
6.1 Introduction 15
6.2 Gantt Chart 15
7. QUEUING THEORY
7.1 Introduction 19
7.2 Kendall Notations 20
7.3 Queue Related Operating Characteristics 20
8. LINEAR PROGRAMMING PROBLEM
8.1 Introduction 22
8.2 Some Definitions in Linear Programming 22
8.3 Solution of Linear Programming Problem 22
8.4 Flowchart of Simplex Method (Maximization Problem) 24
9. ASSIGNMENT MODEL
9.1 Introduction 25
9.2 Solution Method for Assignment Problem 25
9.3 Algorithm to Solve Assignment Model 25
10. TRANSPORTATION PROBLEM
10.1 Introduction 28
10.2 How to Solve the Transportation Problem (TP)? 28
11. GATE QUESTIONS 30
12. ASSIGNMENT QUESTIONS 74
1 FORECASTING
1.1 DEFINITION Application:

i) Monthly forecast of sales
Forecasting is defined as an estimate of
sales in physical units or monetary value 1.3 CATEGORIES OF FORECASTING
for a specified period. METHOD
1.2 TYPE OF FORECASTING Forecasting can also be classified into two

categories:
The forecasting may be classified on the i) Qualitative Method
basis of time span or range of forecasting. ii) Quantitative Method
There are three categories as follows:
1.3.1 QUALITATIVE METHOD
1.2.1 LONG RANGE FORECASTING
Qualitative methods are needed in
Long range forecasting consists of time forecasting when data necessary to use
period of more than 5 years. Mostly time series are not available .for example ,
qualitative techniques are used for long when a new product is to be launched in
range forecasting. the market , its past demand data are not
available
Applications: In such cases human judgment, expert
i) Power generation opinion, market research etc. are required
ii) Cement Industry for forecasting.
iii) Sugar Industry
iv) Petroleum Industry 1.3.1.1 TYPE OF QUALITATIVE
FORECASTING
1.2.2 MEDIUM RANGE FORECASTING
1) Delphi Method
The range of medium range forecasting is 2) Market Research
generally 1 to 5 years. Medium range 3) Historical Estimates
forecasting needs combination of collective
opinion, regression analysis, correlation of 1.3.2 QUANTITATIVE METHOD
different index and inflation etc.
When past data are available then with the
Applications: help of mathematical equations forecasting
i) Inventory planning can be done. Such method of forecasting is
ii) Sales planning known as quantitative method. It is done
iii) Enrolment of students in college etc. for small to medium range forecasting.
1.2.3 SHORT RANGE FORECASTING 1.3.2.1TYPES OF QUANTITATIVE

METHOD OF FORECASTING
Short range forecasting covers a period
typically from one hour to one year. In 1) Least square or Regression analysis
most cases, it is for one season, a few 2) Time series analysis
months or a few weeks. For this
exponential smoothing, graphical 1.3.2.2LEAST SQUARE or REGRESSION
projections etc. are used. ANALYSIS
This is the mathematical method of wants to attach more weightage to the
obtaining the line of best fit between the third month and least to the first month.
dependent variable & independent variable For example, depending upon the
.In a simple regression analysis, the importance it assigns weightage e.g. 0.2
relationship between the dependent to 1st period 0.3 to second and 0.5 to the
variable y and some independent variable third. The sum of these weights should
x can be represented by a straight line. be equal to one.
y= a +bx
Where a = y intercept Example: The past data on the load on
b = Slope of the line the weaving machines is shown below:
The values of ‘a’ & ‘b’ are determined from Month Load(hrs)
two simultaneous equations May-96
y  na  bx … (i) June-96 585
July-96 610
xy  a x  bx 2
… (ii)
Aug-96 675
Sep-96 750
By solving equation (i) & (ii), we get Oct-96 860
1
a   y  bx  Nov-96 970
n
b
xy  nxy a) Compute the load on the weaving
machine centre using 5th moving
 x   nx 2
2
average for the months of December

Where n = No of observations 1996.
b) Compute a weight three months
1.3.2.3 TIME SERIES ANALYSIS moving average for December, 1996
where the weightage are 0.5 for the
1) Simple Moving Average Method: This latest month, 0.3 and 0.2 for the
method of forecasting uses past data to other months respectively.
calculate a rolling average for a period.
Solutions:
Moving Average(y) a) Five months moving average forecast
Sum of demands for periods for Dec.1996
 D Nov.  D Oct  D Sep  D Aug  D July
Chosen number of peridos 
D  D2  D3 ..  Dn 5
 1 970  860  750  675  610
n 
5
2) Weighted Moving Average: As  773hrs
compared to simple moving average
which gives equal effect to each b) A three month weight moving
component of the data base, weighted average forecast for Dec. 1996
moving average can give any amount of 
 W Nov.D Nov    W oct  D Oct   (W Sep.D Sep)
WNov  WOct  WSep
weights for each element, where the
sum of all weight should be one.

 970  0.5   660  0.3  (750  0.2)
In simple moving average, equal 0.5  0.3  0.2
weightage is given to 1st month, 2nd =947.8 machine hours.
month and 3rd month in a three month
moving average. But the organization
 D  Ft 
n 2
1) Exponential Smoothing Method: The
t
Moving Average Method of forecasting MSE  t I
requires maintaining the data for all the n

previous years. This method overcomes
the limitations of moving average and 1.4.3 BIAS
eliminates the requirement of keeping
past record. It represents a weighted Bias is measure of overestimation or
average for the past observation. The underestimation
  Dt  Ft 
n
most recent observation is given
Bias  t I
highest weightage and it decreases in n
the form of geometric progression
when move for older observations. 1.4.4 TRACKING SIGNAL (TS)
Forecast for the period t(f t ) is given by
f t  f t 1  α  Dt 1  f t 1  It is used to identify those items, which do
not keep pace with either positive or
Where f t 1 =Last period forecasted
negative bias or trend.
demand
  Dt  Ft 
n
Dt−1 =Last period actual demands TS  t I

α =Smoothing constant which lies  MAD n
between 0-1 Where
Note:  MADn  Mean absolute deviation till period n.
When demand is very stable
α = 0.1 to 0.3  BIASn  Bias till period n.
When demand is slightly unstable
α = 0.4 to 0.6
1.4 FORECASTING ERROR
1.4.1 MEAN ABSOLUTE DEVIATION

(MAD)
This is calculated as the average of absolute

value of difference between actual and
forecasted value.

n
Dt  Ft
MAD  t I
n
Where Dt = Actual demand for period t
Ft = Forecasted demand for period t
n = Number of periods considered for
calculating the error
1.4.2 MEAN SUM OF SQUARE ERROR

(MSE)
The average of square of all errors in the

forecast is termed as MSE. Its
interpretation is same as MAD.
2 INVENTORY CONTROL
2.1 INTRODUCTION and how much to order and how much to

stocks that costs associated with buying &
The term inventory can be defined as the storing are optimal without interrupting
stocks of raw materials, parts and finished production and sales. Inventory control
products held by an organization. It is a basically deals with two problems:
comprehensive list of movable items which 1) When should an order be placed (order
are required for manufacturing the level)
products and to maintain the plant facilities 2) How much should be ordered (order
in working conditions. quantity)
2.1.1CLASSIFICATION OF INVENTORIES 2.2.1 INVENTORY CONTROL TERMINOLOGY
1) Demand: It is the number of items

1) Direct inventory: The inventory which required per unit time. The demand
play a direct role in the manufacture of may be either deterministic or
a product and becomes an integral part probabilistic in nature.
of the finished product are called direct 2) Order cycle/ cycle time: The time
inventories e.g. period between two successive orders
i) Raw material is called order cycle or cycle time.
ii) In process inventory 3) Lead time: The length of time between
iii) Purchased parts placing an order and receipt of items is
iv) Finished goods called lead time.
4) Safety stock: It is also called buffer
2) Indirect inventory: The Indirect stock or minimum stock. It is the stock
inventories are those materials which or inventory needed to account for
helps the raw materials to get converted delays in materials supply and to
into the finished product, but do not account for sudden increase in
becomes an integral part of the finished demands due to rush orders.
products
i) Tools
ii) Supplies (brooms, cotton, toilet
papers, card board boxes, office
supplies etc)
2.1.2 REASONS FOR KEEPING

INVENTORIES
1) To stabilize production
2) To take advantage of price discounts
3) To meet the demands during the
1) Re-order level (ROL): It is the point at
replenishment period
which the replenishment action is
4) To prevent loss of sales etc
initiated when the stock level reaches
2.2 INVENTORY CONTROL ROL, the order is placed for the item.
2) Re-order quantity: This is the quantity
Inventory control is a planned approach of at re-order level. Normally this quantity
determining what to order, when to order equals the economic order quantity.
2.2.2 INVENTORY CONTROL SYSTEMS iv) Salaries of staff
v) Obsolescence
1) Fixed quantity system (Q system): In vi) Deterioration
fixed quantity (Q system), the order vii) Pilferage etc
quantity is fixed and ordering time
varies according to the fluctuation in Generally carrying cost is expressed as a
demand. percentage of inventory value.
Assuming that the inventory decreases
2) Fixed period system (P System): In through use or sale at a constant rate from
fixed period (P-system), the ordering the order quantity (Q) to zero and then
interval is fixed but the order quantity replenished by another order quantity, the
may vary with changes in demand. average inventory
Q0 Q
2.3 COSTS ASSOCIATED WITH INVENTORY
 
2 2
If Cc = Carrying cost per unit per unit time,
2.3.1 ORDERING COST then average carrying cost is given by
It is the cost of placing an order from a Average carrying cost =Cc× Average Inventory
vendor. This includes all costs incurred Q
from calling for quotations, stationary cost,  Cc 
2
salaries of staff involved in purchase
function etc.
2.3.3 SHORTAGE COST
 If ′co ′ is the cost of placing an order When there is stock-out situation, the
quantity, then the unit cost of placing an customer demand is not satisfied. This
c
order  o causes loss due to emergency purchase,
Q unsatisfied customer, results in loss of
 Unit cost of order decreases with goodwill and lost – sale. This is shortage
increase in order quantity. cost.
2.3.4 PRODUCTION OR PURCHASE COST
The value of an item is its purchasing or

production cost. This cost becomes
significant when availing the price discounts.
2.4 ECONOMIC ORDER QUANTITY
It is to be noted that ordering cost and

2.3.2 CARRYING COST OR HOLDING carrying cost are conflating in nature and in
COST determining the most economical quantity
to order; we have to strike a balance
Holding costs are incurred due to maintain between the two. From the point of view of
an inventory level in the organization. It is the carrying cost inventory should be as
due to following factors: small as possible which is not practical and
i) Interest on the held up capital in from the point of view of ordering cost,
inventory material should be ordered in large
ii) Insurance cost quantities per order, but this will result in
iii) Rent of building high carrying cost.
To get economic order quantity total, cost
is to be differentiated and equated to zero.
We get
2DCo
Q*  EOQ 
Ch
The optimal number of order placed per
year
So for a particular annual consumption D
N*  *
there is one order quantity at which the Q
total cost of item (ordering cost + carrying Optimal time interval between two orders
cost) are the lowest and this is called No.of working days in a year
“Economic order quantity” T* 
N*
2.5 INVENTORY MODELS Minimum total yearly inventory cost
T  2DCo .Ch
2.5.1 ECONOMIC ORDER QUANTITY WITH
INSTANT ANEOUS STOCK REPLENISHMENT
(BASIC INVENTORY MODEL) 2.5.2 ECONOMIC ORDER QUANTITY
WHEN STOCK REPLENISHMENT IS NON –
INSTANTANEOUS(PRODUCTION MODEL)
This model is applicable when inventory

continuously builds up over a period of
time at a constant rate
Let D = Annual demand (Units per year)

Co = Ordering costs (Rupees/order)
Ch = Inventory carrying cost
(Rupees/unit/untimtime)
Q = Order quantity
Q∗ = Economic order Quantity
N = Number of order placed per annum
Tc = Total cost per annum Let
Annual ordering cost = No. of orders × P = Production Rate
ordering cost per order D = Demand or consumption rate
Annual Demand Tp =Period during replenishment of inventory
  ordering cost per order
Order Quantity takes place
D T= Period during which Consumption of
  Co inventory takes place (During entire
Q
cycle)
Annual carrying cost = Average Inventory ×
Inventory carrying cost Inventory built up rate = p-d
QCh Maximum inventory at the end of
 production Run= (p-d) Tp
2
DCo QCh  pd 
Annual total cost  Tc    Average Inventory    Tp
Q 2  2 
Quantity produced during production Let
Period (Q) = P×Tp Cc = Carryingcost
Q Ch = shortage cost
Hence, Tp 
P Co = orderingcost
Q d  2DCo  Cs  Ch 
Average Inventory = 1   1) EOQ   
2  P Ch  Cs 
Annual Inventory carrying cost = Avg. 2) Total optimal inventory cost
Inventory × Inventory carrying cost
Q d   Cs 
 1   .Ch T  2DCo Ch  
2  P  Ch  Cs 
Annual setup cost = No. of setups × setup
2.5.4 PRICE DISCOUNT MODEL
D
cost /setup   Co
Q Let D be the annual consumption (Demand)
DCo Q  d  C1 is the price per unit (Basic price)
Total Annual cost  Tc    1   Ch C2 is the discounted price per unit
Q 2  P
C0 is the ordering cost.
To determine the EOQ, different the total I is inventory cost expressed as a
cost equation with respect to Q, set the first percentage of average inventory
derivate equal to zero. QB be the price break quantity (Quantity at
DTc 1  d  DC which the price changes)
 1   Ch  2 o  0
dQ 2  P  Q
2DCo
Q*  EOQ 
d
(1  )Ch
P
Optimal total cost
 d
T  2DCo Ch 1  
 P
Optimal number of production runs
Annual Demand D
N*   *
EOQ Q
2.5.3 INVENTORY MODEL WITH SHORTAGE
There are sine occasions where stock out
are economically justified. This situation is
observed normally when cost per unit is
very high.
Example: A stockiest has to supply 12,000
units of a product per year to his customer.
The demand is fixed and known & the
shortage cost is assumed is to be infinite.
The inventory holding cost is Rs. 0.20 per
unit per month and the ordering is Rs. 350.
Determine
i) The optimum lot size q o
ii) Optimum scheduling period t o
iii) Minimum total variable yearly cost.
Solution: Supply rate, The monthly demands for the product is
12000 200 units, storage cost is 2%of the unit cost
R=  1, 000 units/month
12 and cost of ordering is Rs. 100
C1  Rs. 0.20 per unit per month, C3  Rs. Solution:
350 per order 2 100  200
EOQ for unit price of Rs. 9.25 
2C3R 2×350×1000 9.25  0.02
i) q o = = = 465 units (infesiable)
C1 0.20
Total cost/ month for order quantity of 500
=1870 units/ order units (non-optimal size)
2C3 2×350 = 2C1C3R +CR
ii) t o = = =1.87 months
C1R 0.20×1000
= 2× 10×0.02 ×100×200+10×200
= 8.1 week between order
iii) Co = 2C3C1R =Rs 89.45+2,000 =Rs.2089.45
Total cost/ month for order quantity of 500
= 2×0.20×12×350×(1000×12)
units (non-optimal size)
= Rs. 4490 per year q R
= C1 +C3 . +CR
2 q
Example: The demand for a commodity is
100 units per day. Every time an order is  500 200 
=Rs.  ×9.25×0.02+100× +9.25×200 
placed, a fixed cost of Rs. 400 is incurred.  2 500 
Holding cost is Rs. 0.08 per unit per day. If =Rs.  46.25+40+1,850  =Rs.1,936.25
the lead time is 13 days determine the
Total cost/month for order quantity of 750
economic lot size the reorder point.
units (non –optional size)
q R
Solution: = C1 +C3 . +CR
2 q
2C3R 2×400×100
q0 = = =1000units  750 200 
C1 0.08 =Rs.  ×8.75×0.02+100× +8.75×200 
 2 70 
1000
Length of cycle, t 0 = =10days =Rs.  65.63+26.67+1,750  =Rs.1,842.30
100
As the lead time is 13 days and cycle length  the optimal order quantity is 750 units.
is 10 days, re-ordering should occur when The total cost curve, which is a stepped
the level of inventory is sufficient to satisfy curve is shown in Fig.
the demand for 13  10  3days
Recorder point = 100 × 3 = 300 units
It may be noted that the ‘effective’ lead
time is taken equal to 3 days rather than 13
days is because the lead time is longer than
t0.
Example: Find the optimal order quantity

for a product for which the price breaks are
as follows:
Quantity Unit cost (Rs.)
0 < q < 500 Rs. 10
500 ≤ q < 750 Rs. 9.25
750 ≤ q Rs. 8.75
3 PROJECT MANAGEMENT(CPM & PERT)
3.1 INTRODUCTION 4) Dummy Activity: An activity that

consumes no time but shows
Project is a combination of interrelated precedence among activities. It is useful
activities that must be executed in a for proper representation in the network.
defined order for completing the entire
task. Project management is the domain 5) Earliest start time: The earliest time
that deals with planning organizing, that an activity can start, from the
staffing, controlling and directing a project beginning of the project.
for its effective execution.
CPM (Critical Path Method) & PERT 6) Earliest finish time: The earliest time
(Program Evaluation & Review Technique) that an activity can finish from the
are the techniques used for project beginning of the project. EFT = EST +
management. Activity duration
3.1.1 DIFFERENCE BETWEEN PERT & CPM 7) Latest finish time: It is the latest time
that an activity can finish from the
Sr. beginning of the project, without
PERT CPM causing a delay in the completion of the
No.
project.
1. Time estimates are Time estimates
probabilistic are deterministic 8) Latest start time: It is the latest time
2. It is event oriented It is activity that an activity can start from the
technique oriented beginning of the project, without
technique causing a delay in the completion of the
project.
3. It is used for non- It is used for
repetitive task repetitive task 9) Float: Float is a difference between the
4. It is used where the It is used where time available to complete an activity
activities are of the activities are and the actual time necessary to
uncertain time of well known complete the same activity. Floats can
time. further be classified into three types:
3.2 TERMS RELATED WITH PROJECT i) Total float: It represents the time
MANAGEMENT by which an activity can be delayed
or may extended without affecting
1) Activity: An activity is a physically the total duration for the project. It
identifiable part of the project which is also expressed as a difference
consumes time and resources. Each between latest start time and
activity has a definite start and end. earliest start time.
2) Event: An event represents the start or Hence
the completion of an activity. Total float =LST-EST=LFT-EFT
ii) Free float: It represents the time by

3) Activity duration: It is the physical which an activity can be extended or
time required to complete an activity. delayed which further does not
delay the start of any succeeding any complications .Pessimistic time t p is
activity. the longest time taking into consideration
Free float can be calculated by all odds. This is the time estimate if
Free float = EFT – EST - Activity everything goes wrong.
duration
iii) Independent float: It represents

the extra time available with an
activity without affecting any
earliest and latest time.
Independent float = EFT-LST-
Activity duration
10) Critical Path: The sequence or chain of

critical activities for the project Most likely time t m is the best estimate of
constitutes critical path. It is the longest the activity time.This lies between the
duration path which consumes optimistic and pessimistic time
maximum resources. estimatesthe three time estimates
t o , t p and t m are combined to develop
3.3 CRITICAL PATH METHOD expected time t e is given by
t o +4t M tt p
In critical path method the activity times te =
6
are known with certainty. For each activity The standard deviation of the time
earliest start time and latest start times are required to complete each activity
computed. The path with the longest time t p -t o
sequence is called critical path. The length σ=
of the critical path determines the 6
minimum time in which the entire project Variance for such activity
2
can be completed. The activities on the  t p -t o  2
V=   =σ
critical path are called critical activities.  6 
3.4 PROGRAMME EVALUATION &
Example: Consider the network shown in
REVIEW TECHNIQUE fig. For each activity, the three time
estimate t 0 t m and t p are given along the
Critical path method has only one time
arrows in the t 0 − t m − t p order. Determine
estimate so it does not consider
uncertainty in time. In reality the duration variance & expected time for each activity.
of activities may not be deterministic
(certain) in all cases. PERT takes into
account the uncertainty of activity times. It
is a probabilistic model with uncertainty in
activity duration. PERT makes use of three
estimates of time:
i) optimistic time t o
ii) most likely time t m
iii) pessimistic time t p Solutions: We put the events in a tabular
form and calculate the variance and
Optimistic time t o is the shortest possible expected times. These calculations can be
time. If everything goes perfectly without carried on the network also.
Activity-j
Predecessor Successor 𝐭𝟎 𝐭𝐦
Event i Event j
10 20 6 9
10 50 4 7
20 30 14 17
20 40 7 10
20 50 3 5
30 70 13 18
40 60 10 14 Solution: First step is to number to events.
40 70 12 15 In this network the events are already
50 60 9 11
numbered. The calculations can be
60 70 17 20
performed on the network itself or in the
2
t t  t 0  4t m  t p tabular form. After calculating the expected
tp σ p 0  te  times and the variances of the activities
 6  6
they are put along the arrows as shown in
12 1.00 9.00 fig. By carrying the forward pass and
8 0.44 6.7
20 1.00 17.0
backward pass computations E and L
13 1.00 10.0 values are determined for all the events. By
9 1.00 5.33 applying the conditions of critical activities
25 1.00 18.33 it is determined that 1-2-3-4-5-6 and 1-2-4-
16 4.00 13.67 5-6 are the two critical paths.
18 1.00 15.00
12 0.25 10.83
25 1.78 20.33
The entry in the tabular form starts with

the initial event, by entering first number
(10 in this case) in the first row under the
column ‘predecessor event I’. Then the
activities emerging out from the initial
event (here 10 – 20 and 10 – 50) are
entered in the ascending order. Then we go
to the next higher number (here 20) in the
predecessor event column and enter all the Expected duration of the project tcp=19days
activities emerging out from this event Contractual obligation time, T = 20 days
i.e. 20 – 30 20 – 40 and 20 – 50. This Standard division of the project
procedure is repeated until all the events   2
ij for all i – j on the critical path
are entered. The variance σ2 and the  for path 1  2  4  5  6
expected activity time t e are then computed
by employing the relations:  1  1.36  0.11  0.44  1.70
2  for path 1  2  3  4  5  6
 tp  t0  t 0  4t m  t p
σ 
2
 And t e   1  1.28  0.11  0.44  2.08
 6  6
∴ σ = 2.08 is chosen as it is higher of the
Example: Consider the network shown in two values.
fig. The three time estimates for the T  Tcp
 Normal deviate, Z 
activities are given along the arrows. 
Determine the critical path. What is the 20  19
probability that the project will be   0.48
2.08
completed in 20 days? From standard deviation table,
Probability =68.44%
4 PLANT LAYOUT
4.1 INTRODUCTION ii) The break – down of a single machine in

the line leads to shutdown of the whole
Plant – layout refers to the arrangement of production line.
various plant facilities such as equipment, iii) High capital investment
machines, materials, manpower & services
of the plant within the area of the plant site. 4.1.1.2PROCESS LAYOUT
4.1.1 TYPE OF PLANT LAYOUT Process layout is also known as functional

layout. Here machine performing similar
On the basis of type of industry, volume of operations are grouped together and are
production and variety of production, we not arranged according to any particular
have the following four types of plant sequence of operations. The work is
layout. brought to a machine from a machine on
which the previous operation was carried
4.1.1.1 PRODUCT LAYOUT out, this machine may be in another
department or even a building. This results
This layout is also called flow – type layout in lot of back – tracking or cross movement
or production line layout. In this layout the of the work.
machines, equipments and work centers
are arranged in a straight or curved line in
the order in which they have to be used;
that is according to the sequence of
operations needed to manufacture a
product.
Examples: Automobile assembly lines
bottling plant and so on. Advantages of process layout:
i) Greater flexibility of production. Change

in product design can be easily
accommodated.
ii) Lower initial investment in machinery
Advantages of product layout: because of less duplication of
equipment.
i) Reduced total production time iii) Break down of one machine will not
ii) Minimum of handling & transportation shutdown the production as the work of
resulting in lower total material handling that machine can be transferred to
cost.
another machine or worker.
iii) Less floor area needed per unit of
production Disadvantages of process layout:
iv) Less work in process inventory
i) Generally, more floor space is required.
Disadvantages: ii) More handling costs because of back
tracking and cross movements of work
i) The layout is fixed, that is, if the product resulting in chaotic material movement.
design changes, the whole line will have iii) Longer production cycles.
to be rearranged, that is lower flexibility iv) High in-process inventory.
4.1.1.3GROUP TECHNOLOGY 1) Job Shop Production: The job shop
production system is used when
In group technology, similar parts or those production volume is low. It has
requiring similar sequence of operations following characteristics:
are grouped together in a family. All the i) It is commonly used to meet a
equipments needed to manufacture a particular customer need.
family of parts is grouped into a cell, that is ii) Production lot size is generally
why this layout is also called cellular small.
layout. iii) Product variety is generally very
high.
iv) Production equipments are mostly
general purpose and flexible.
2) Batch Production: Batch production is

suited for medium volume lot of same
variety. At regular intervals, the
production order is repeated. Batch
production has the following
[L: Lathe; M: Milling; D: Drilling CG: characteristics:
Cylindrical Grinding; SG: Surface Grinding] i) Commonly used to meet repeated
customer orders.
4.1.1.4 FIXED POSITION LAYOUT ii) Production lot size is medium
batches.
This type of layout is used for products iii) Suitable for moderate product
which are very massive (in weight or size variety.
or both) it is very inconvenient or is not
desirable to move them. Here the wok 3) Mass Production: Mass production is
remains in a fixed position. The machines, suited for the manufacturing of
materials, equipments and workers needed continues identical parts. Production
for production are brought to the site of rate is generally very high. It is
work. E.g. shipbuilding industry, aircraft characterized by the followings:
production etc. i) Suitable for high demand items.
ii) Production lot size is very high and
production rate is continuous.
iii) Product variety is very low.
iv) Special purpose tools & equipment
may be needed.
4.2 PRODUCTION SYSTEM
The production system varies from factory

to factory and from product to product
however of the most important issues is
production volume. The most common type
of production system is:
5 LINE BALANCING
5.1 INTRODUCTION 5.3 IMPORTANT PARAMETERS IN LINE

BALANCING
Assembly line balancing is associated with
a product layout in which products are 1) Line efficiency  
processed as they pass through a line of Total station time
work centers. An assembly line can be ×100
Cycle time×No.of work stations
considered as a production sequence
where parts are assembled together to 2) Balance delay   l – Line efficiency  100
form an end product.
Example: The table gives details of an
5.2 SOME IMPORTANT DEFINITIONS assembly line
1) Work station: A work station is a Work stations I II III IV V VI

location on assembly line where given Total task time 7 9 10 9 9 6
amount of work is performed. at the station (in
Min)
2) Work elements: The job is divided into
its components so that work may be Calculate:
spread along the line. Work element is a 1) Balance delay of the assembly line.
part of the total job content in the line. 2) Line efficiency of the assembly line.
3) Task time: The standard time to Solution: Cycle Time = Maximum time in
perform element task. work station =10 min
Total work content = 7 + 9 + 7 + 10 + 9 + 6
4) Station time: Total standard work = 48 min
content of specific workstation. Work stations = 6
Total work Content
5) Cycle time: It is the amount of time for Balance Delay = 1 
workstations  cycle time
which a unit that is assembled is 48
available to any operator on the linear.  1  0.2  20%
It is the time the product spends at each 6 10
work station Line Efficiency = 1 – balance delay
Availble time period = 1 – 0.2
Cycle Time  = 0.8 = 80%
out units
6) Balance delay: The percentage of total

idle time on the line to total time spent
by the product from beginning to end of
the line.
7) Line efficiency: It is expressed as the

ratio of total station time to the cycle
time multiply by the number of station.
Line efficiency indicates the percentage
utilization of facilities.
6 SEQUENCING MODEL
6.1 INTRODUCTION Solution:
When number of jobs are waiting in queue i) First come first serve (FCFS) Rule: In
before an operational facility (such as this, the job, which arrives first, is
milling) there is need to decide the scheduled first. Then the next arrived
sequence of processing all the waiting jobs job is scheduled, and so on
sequencing is basically an order in which Job Arrival (in Processing Due date (Days
the jobs, waiting before an operational sequence) Time (Days) from today)
(i) (pi) (di)
facility are processed. For this priority rule,
J1 4 6
processing time etc are needed. J2 5 7
J3 3 8
6.2 GANTT CHART J4 7 10
J5 2 3
The Gantt chart is a very useful graphical
Lateness
tool for representing a production Due date Flow of job
schedule. A common production schedule (Days Time Li=(Fi-di);
Job Processing from (Days) Fi>di
involves a large number of production sequence Time(Days) today) Fi=(Fi- Otherwise
facilities, such as machine testing etc. Gantt (i) (pi) (di ) 1+p1) Zero
chart contains time on its one axis. The J5 2 3 0+2=2 0
J1 4 6 2+4=6 0
status and scheduling of jobs on a time J2 5 7 6 + 5 = 11 11 – 7 = 4
scale is schematically represented. This J3 3 8 11+3= 15 14 – 8 = 6
J4 7 10 14+7= 21 21–10= 11
gives a clear pictorial representation of
relationship among different production
related activities of a firm on a time Lateness of job
horizon. Flow Time (Days) = 𝐅𝐢 − 𝐝𝐢 ;
𝐅𝐢 = 𝐅𝐢−𝟏 + 𝐩𝐢 𝐅𝐢 > 𝐝𝐢
6.2.1 PROCESSING OF N JOBS THROUGH Otherwise Zero
ONE MACHINE 0+4=4 0
4+5=9 2
The processing of n jobs through one 9 + 3 = 12 4
machine can be done by following rules: 12 + 7 = 19 9
1) First Come First Serve Rule (FCFS) 19 + 2 = 21 18
2) Shortest Processing Time Rule (SPT)
3) Earliest Due Date Rule (EDD) Total flow time
4) Last Come First Service Rule (LCFS) =4 + 9 + 12 + 19 + 21 = 65 days
5) Slack Time Remaining Rule (STR) Mean flow time
time flow time 65
   13days
These rules described with the help of Number of jobs 5
example given below: Total lateness of job
Example: There are five jobs in waiting for =0 + 2 + 4 + 9 + 18 = 33 days
getting proceeds on a machine. There Average lateness of job
sequence of arrival, processing time and 33
due–date are given in the table below.   66.6days
5
Schedule the jobs using FCFS, SPT, EDD,
ii) Shortest Processing Time (SPT) Rule
LCFS and STR rules. Compare the results.
or Shortest Operation Time (SOT)
Rule: This rule gives highest priority to
that job, which has shortest processing
time. This approach gives following
sequence of jobs for the given problem.
Total flow time=2+5+9+14+21=51 days
51
Mean flow time   10.2days
5
Total lateness of job =3+7+11=21 days
21
Average lateness of job   4.2days
5
iii) Earliest Due Date Rule: This rule gives
highest priority to the job having
earliest due date.
Total flow time =2+6+11+14+21=54
days
54
Mean flow time   10.8days
5 6.2.11 COMPARISON OF SEQUENCING
Total lateness of job =0+0+4+6+11=21 RULES FOR THE GIVEN PROBLEM
days
21
5
i) Last Come First Serve (LCFS) Rule:

This rule gives priority to that job,
which has arrived most recently. Most
recent job is the last arrived job. The
scheduling of jobs on this rule is 6.2.2 PROCESSING N JOBS THROUGH
explained through the earlier example. TWO MACHINES
Total flow time =2+9+12+17+21=61
days Johnson rule for solving n jobs through two
61
Mean flow time   12.2day machines consists of following steps:
5 Step1: Examine the columns of processing
Total lateness of job =4+10+15=29 days times on machine A and B and find the
29 smaller value [Min Ai Bi ]
5 Step2: If this value falls in column A,
ii) Slack Time Remaining (STR) Rule: schedule this job first on machine A. If this
STR is calculated as the difference value falls in column B, schedule this job on
between the times remaining before the machine B (because of the given order AB).
due date minus processing time. If there are equal minimal value (there is
Total flow time =2+6+11+18+20=57 tie) one in each column, schedule the one in
days the first column first on machine A; and the
57 one in the second column, last on machine
Mean flow time   11.4days A. If both equal values are in the first
5
Total lateness of job =4+8+12=24 days column (A), select the one with lowest
24 entry in column A first. If the equal values
Average lateness of job   4.8days are in the second column (B), select the one
5
with lowest entry in column A first.
Step3: Cross out the Job assigned and 4 1 3 2 5 6
continue the process (repeat step 1 and 2)
placing the jobs next to first or last till all Now we can calculate the elapsed time
the jobs are scheduled. The resulting corresponding to the optimal sequence,
sequence will minimize T. using the individual processing times given
in the problem.
Example: A machine operator has to
perform two operations, turning and Turning Threading
threading on a number of different jobs. operation operation
The time required to perform these Job Time Time Time Time
in Out in Out
operations (in minutes) for each job is
known. Determine the order in which the 4 0 2 2 8
jobs should be processed in order to 1 2 5 8 16
minimize the total time required to turn 3 5 10 16 25
out all the jobs. 2 10 22 25 35
Time for Time for
5 22 31 35 38
Job turning threading
(minutes) (minutes) 6 31 42 42 43
1 3 8
2 12 10 Thus the minimum elapsed time is 43
3 5 9 minutes. Idle time for turning operation is
4 2 6 1 minute (from 42nd minute to 43rdminute)
5 8 3
and for threading operation is 12+4=16
6 11 1
minutes (from 0-2 and 38-42 minutes)
Also find the total processing time and idle
times for turning and threading operations.
Solution: By examining the columns, we

find the smallest value. It is threading time
of 1 minute for job 6 in second column. This
we schedule job 6 last turning (and
thereafter for threading) as shown below.
6
The smallest value is turning item of 2 6.2.3 PROCESSING N JOBS THROUGH
minutes for job 4 in first column. Thus we THREE MACHINES
schedule job 4 first as shown below:
4 6 For the n jobs three machine problem let
There are two equal minimal values: A,B, C are the three machine and the
turning time of 3 minutes for job 1 in first method of solving two machine problem
column and threading time of 3 minutes for is applicable here also but the following
job 5 in second column. According to the two conditions are to be checked.
rules, job 1 is scheduled next to job to job 4 1) The minimum time on machine A is ≥
and 5 next to job 6 as shown below: maximum time on machine B, and
4 1 5 6 2) The minimum time on machine C is ≥
The smallest value is turning time of 5 Maximum time on machine B.
minutes for job 3 in first column. Therefore,
we scheduled job 3, next to job 1 and we Now two fictitious machines are denoted
get the optimal sequence as by G and H are formed by following way.
Gi = Ai + Bi
Hi = Bi + Ci
Now this three machine problem is The next smallest value is 9 under Gi for job
converted into two machine problem and 3. Hence we schedule job 3 as shown
Johnson rule can be applicable here. The below:
problem can be well understood by 4 3
referring the example given below: There are two equal minimal values :
processing time of 11 minutes under
Example: A machine operator has to column Gi for jobs 1 and processing time of
perform three operations: turning, 11 minutes under column Hi for job 1 is
threading and knurling a number of scheduled next to job 3 and 5 is scheduled
different jobs. The time required to last as shown below:
perform these operations (in minutes) for 4 3 1 5
each job is known. Determine the order in
which the jobs should be processed in Now we may calculate the elapsed time
order to minimize the total time required corresponding to the optimal sequence,
to turn out all the jobs. Also find the idle using the individual processing times given
times for the three operations. in the problem.
Job Time for Time for Time for
Turning Threading Knurling
turning threading knurling
operation operation operation
(minutes) (minutes ) (minutes)
Job Time Time Time Time Time Time
1 3 8 13
in Out in Out in Out
2 12 6 14 4 0 2 2 8 8 20
3 5 4 9 3 2 7 8 12 20 29
4 2 6 12 1 7 10 12 20 29 42
5 9 3 8 6 10 21 21 22 42 55
6 11 1 13 2 21 33 33 39 55 69
5 33 42 42 45 69 77
Solution: Here min Ai = 2 , Max Bi = 8, Thus the minimum elapsed is 77minutes.

and min Ci = max Bi Idle time for turning operation is 77 – 42 =
Hence 35 minutes, for threading operation is +1 +
Gi= Turning + Hi= Threading 11 + 3 + (77 – 45) = 17 + 32 = 49 minutes
Threading +Knurling and for operation is 8 minutes.
Job (minutes) (minutes)
1 11 21
2 18 20
3 9 13
4 8 18
5 12 11
6 12 14
Examine the columns Gi and Hi we find

that the smallest value is 8 under operation
Gi in row 4. Thus we scheduled job 4 first
(on machine Gi and thereafter onHi ) as
shown below:
4
7 QUEUING THEORY
7.1 INTRODUCTION 7.1.1.2 QUEUE CHARACTERISTICS
Items which have been lined up for Characteristic of a queue is its discipline.
receiving service is called queue. This Queue discipline is the rule by which
happens when the demand for a particular customers waiting in queue would receive
service exceeds the capacity of service service. These rules may be:
facility. i) FIFO: First – In – First – Out
ii) LIFO: Last – In – First – Out
7.1.1 CHARACTERISTICS OF A QUEUING iii) SIRO: Service In Random Order etc
MODEL
7.1.1.3 SERVICE CHARACTERISTICS
A queuing model may be looked for four
basic characteristics Service system may vary depending upon
i) Arrival characteristics (input source) the number of service channels, number of
ii) Queue or waiting line characteristics servers etc.
iii) Service facility
iv) Customer behaviour
7.1.1.1 ARRIVAL CHARACTERISTICS /

CALLING POPULATION
1) Queue or waiting line can be defined as
The calling population has three major the number of customer waiting to be
features: served excluding the customer being
serviced.
1) Size of input source: The size of input 2) System can be defined as the
source may be considered either finite combination of queue & service facility.
or infinite. When the arrival to a system
at any given time is only a very small 7.1.1.4 CUSTOMER BEHAVIOR
fraction, then it is consider as finite
otherwise infinite. 1) Balking of Queue: Some customers
decide not to join the queue due to their
2) Arrival pattern: Arrival at service observation related to the long length of
counter may be scheduled or random. queue, insufficient waiting space or
improper care while customers are in
3) Customer attitude: Which may be queue. This is balking behavior of
patient or impatient. customer.
4) Number of waiting lines that are 2) Reneging of Queue: Reneging pertains

allowed: to impatient customers after being in
queue for some time, few customers Ls 1
Ws  
become impatient and may leave the  
queue. This phenomenon is called as
reneging of queue. 5) Expected waiting time in the queue
(𝐖𝐪 ):
3) Jockeying of Queue: Jockeying is a
1  1 
phenomenon, in which customers move Wq  Ws    
from one queue to another queue with a   
hope that they will receive quicker
service in the new position. 6) Probability of no unit in the system
(i.e. system is idle):
7.2 KENDALL NOTATIONS PO  1  
Kendall proposed a set of notations for 7) Probability of system being occupied

queuing models. This is widely used in or busy:
literature. The common pattern of P  1  PO  
notations of a queuing model is given by:
(a/b/c) : ( d/e)
8) Probability of ‘n’ unit in the system:
Where,
a: Probability distribution of the inter Pn  POh
arrival time
b: Probability distribution of the service Example: A person repairing radios finds
time that the time spent on the radio sets has
c: Number of servers in the queuing model exponential distribution with mean 20
d: Maximum allowed customers in the minutes. If the radios are repaired in the
system order in which they come in and their
e: Queue discipline. arrival is approximately Passion with an
average rate of 15 for 8 hour day. What is
7.3 QUEUE RELATED OPERATING there repairman’s expected idle time each
CHARACTERISTICS day? How many jobs are ahead of the
average set just brought in?
1) Traffic density 𝛒 :
λ Solution:
ρ 15 1
μ Arrival rate λ  units / minute,
Where λ Arrival rate 8  60 32
μ =Service rate 1
Service rate μ  units / minute,
20
2) Expected number of units in the Number of jobs ahead of the set brought in
system (length of the system,𝐋𝐬 ): = Average number of jobs in the system,
 λ 1/ 32 5
Ls  Ls   
 μ  λ 1/ 20  1/ 32 3
Number of hours for which the repairman
3) Expected number of units in queue: remains busy in an 8- hour day
    λ 1/ 32 20
L q  Ls      8  8  8   5hours
   μ 1/ 20 32
∴ Time for which repairman remains idle in
4) Expected waiting time in the system an 8-hour day
(𝐖𝐬 ): =8-5=3 hour
Example: A branch of Punjab National
Bank has only one typist. Since the typing
work varies in length (number of pages to
be typed), the typing rate is randomly
distributed approximating a Passion
distribution with mean service rate of 8
letters per hour. The letters arrive at a rate
of 5 per hour during the entire 8-hour
work-day. If the typewriter is valued at Rs.
1.50 per hour determine.
1) Equipment utilization
2) The per cent time that an arriving letter
has to wait
3) Average system time.
4) Average cost due to waiting on the part
of typewriter i.e. it remaining idle.
Solution:
Arrival rate λ = 5 perhour
Service rate, μ = 8 perhour.
1) Equipment utilization,
λ 5
ρ    0.625
μ 8
2) The per cent time that an arriving letter
has to wait
=per cent time the typewriter remains
busy
=62.5%
3) Average system time
1 1 1
Ws    hr.  20minuties
μ λ 85 3
4) Average cost due to waiting on the part
of typewriter per day
=8×(1-5/8)×Rs.1.50=Rs.4.50
8 LINEAR PROGRAMMING PROBLEM
8.1 INTRODUCTION obviously are not the best solutions.

Linear programming (LP) is an optimization 8.2.5 OPTIMUM SOLUTION
problem which is used for the following:
i) It attempts to maximize or minimize a An optimum solution of an LPP is that set of
linear function of decision variables. feasible solution, which satisfies the
ii) The values of the decision variables are maximization (or minimization) of the
selected in such a way that they satisfy objective function. In case of maximization
a set of constraints. Every constraint problem, the objective function needs to be
should be a linear function in the form maximized. However, in case of minimization
of an equation or a linear inequality. problem, objective function is minimized.
The function, which is maximized (or
minimized), is termed as objective function. 8.3 SOLUTION OF LINEAR
The restrictions, which are in the form of PROGRAMMING PROBLEM
equations or inequalities, are termed as The linear programming problem may be
constraints. solved by two methods:
8.2 SOME DEFINITIONS IN LINEAR 1) Graphical Method
PROGRAMMING 2) Simplex Method.
The graphical method to solve LPP is useful
8.2.1 DECISION VARIABLES when there are only two decision variables.
This is because more than two coordinates
In a LPP model the decision variable means
are difficult to be represented on a graph
the variable whose quantitative values are
paper. Simplex technique can handle any
required be found, so as to minimize (or
number of variables.
maximize) the objective function.
8.3.1 GRAPHICAL METHOD
8.2.2 OBJECTIVE FUNCTION
Following steps are adopted to solve a two
The decision maker wants to maximize a
variable LPP through graphical method:
function such as revenue/profit function, or
minimize a function such as cost function
Step1: Formulate the problem in standard
under some restrictions. Function, which is
LPP form. It should have a linear objective
maximized or minimized, is termed as
function of maximization (or minimization)
objective function.
type. There may be many linear constraints
8.2.3 CONSTRAINT but decision variables should not exceed
two.
The restrictions, which are expressed in the Step2: Treat each constraint as a line
form of an equation or inequality (generally equation by assuming ≥ or ≤ signs as equal
assigned with sign ≤or≥, are termed as to sign. Plot them on a graph paper.
constrains. Step3: Based on the original sign (≥ or ≤)
8.2.4 FEASIBLE SOLUTION of the constraint, mark the feasible region
in space.
A set of values of decision variables, which Step4: Identify the corner points (or
satisfies the constraints set, contributes to intersection of constraints, represented by
the feasible solution. There may be many lines) of the feasible region. Also include
feasible solutions for a LP problem & all the two intersections on two axes by the
feasible region. All these points constitute a 1) Formulate the problem as the LPP
set of possible solution as optimal solution problem in standard form.
always lies on the corner points. 2) Convert the inequalities into equalities
Step5: For the objective function, draw by introducing slack or surplus and/or
straight line, called as is profit/ is o cost artificial variables as required by the
line. This may be done by equating the problem.
objective function to a very small profit 3) Initial solution–obtain the initial or
figure or a high cost figure depending upon starting solution by setting n-m variables
the nature of the objective function, i.e., in the problem equal to zero and m
maximization or minimization respectively. represents the number of constraint
Step6: Draw parallel lines to the is o profit equations n represents number of
line in maximization problem: moving variables. The variables set equal to
away from the origin. Stop when there is zero are called non–basic variables.
only one point in the feasible region, which Those (n-m) variables should be equal
is also on the isoprofit line. For the to zero which give unique solution to
minimization problem, draw parallel lines the problem.
to the isocost line and move towards the 4) The initial solution is represented in the
origin stop when there is only one point in tabular form & it is called initial simplex
the feasible region which is also on the is table
cost line. 5) The next step is to improve the solution
Step7: This point represents optimal by the number of iterations till optimal
solution. From the optimal solution point, solution is obtained. This step is
draw perpendicular lines on both axes (X explained as follows:
and Y axes). The point of intersection on i) Determine the entering variable:
the axis will give the values of two The variables with the most negative
variables which give optimal solution. value in the z equation of the initial
table correspond to the entering
8.3.1.1 CHARACTERISTICS OF CORNER variable. This is called entering
POINTS: variable as it enters the basis.
The corner points are points where lines ii) Leaving variable: This is the
representing constraints or axes intersect variable which leaves the basis to
with each other. In other words lines give place for new entering variable.
joining corner points enclose the feasible To identify the leaving variable – the
region. Therefore, step 5 and step 6 may ratio of entering column coefficient
also be undertaken as follows: is calculated for the rows except z
(objective) row only +ve values are
Step 5(a): considered. The variable associated
Calculate the value of objective function at with smallest ratio is called the
each possible solution (i.e. corner point of leaving variable.
feasible region). Find that corner point, iii) The column corresponding to the
which satisfies the objective of maximization entering variable: It is called
or minimization as the case may be. This is entering or pivot column. The row
the optimum solution point. corresponding to the leaving variable
Step 6(a): is called pivot row. The element at
Draw a line with slope, same as that of intersection of pivot row and pivot
objective function, and passing through the column is called the pivot element
optimum solution point. or key element.
iv) For computing the improvement:
Go to step 7
8.3.2 SIMPLE PROCEDURE TO SOLVE LPP
The pivot element should be 1 and
there should be zeros in the pivot
column in all other places. This is Example: A manufacture produces two
done using thee Gauss – Jordan types of products, 1 & 2 at production
elimination method. levels of x1 and x2 respectively. The profit
The new values are calculated using given is 2x1 + 5x2 . The production
following equations: constraints are:
a) New pivot equation x1 + 3x2 ≤ 40
Old pivot equation 3x1 + x2 ≤ 24

pivot element x1 + x2 ≤ 10
b) New Z Equation = x1 > 0
x2 > 0
 its entering column 
 old Z equation  –   Calculate the maximum profit which can
 coefficient  meet the constraints
× New pivot eqation Solution: Objective function: Max 2 = 2 ×
c) For all other equations, 1+5×2
New Equation=(old equation)– Constraints:
(its entering column coefficien× x1 + 3x2 ≤ 40
New pivot eqation 3x1 + x2 ≤ 24
6) Test for optimality: If the values of the x1 + x2 ≤ 10
non – basic variable in Z row are all +ve, x1 > 0, x2 > 0
then optimal solution is reached. Get Now, plotting the constrains on x1 x2 axis
the value of Z and decision variables
from the table otherwise. Repeat the
step 5 to get improved solution till
optimal solution is obtained .Simple
procedure for maximization problem is
shown in fig.
8.4 FLOWCHART OF SIMPLEX METHOD
(MAXIMIZATION PROBLEM)
Solving the equation to get- corner points

of feasible region
We get x1 = 7 x2 = 3
Maximum Profit, Z = 2 × 7 + (5 × 3)
=2
9 ASSIGNMENT MODEL
9.1 INTRODUCTION 9.3 ALGORITHM TO SOLVE ASSIGNMENT

MODEL
Assignment problem pertain to problem of
assigning n jobs to n different machines. 9.3.1 OPPORTUNITY COST APPROACH
This model can be effectively used for any
other problem in which n items are to be Opportunity cost is the cost of possible
assigned to other n items so that each one opportunity which is lost or surrendered.
of the first group is assigned to one distinct The given problem is related to assigning
item from the second group. operators on machine for it least cost
9.2 SOLUTION METHOD FOR objective.
ASSIGNMENT PROBLEM Consider that if operator 2 is assigned on
machine I, it will cost Rs. 7. With this no
The assignment problem is solved in the other operators can be assigned machine I
flowing manner (Figure below): as one –to one assignment is required.
However, if operator 1 is assigned on
machine I it will cost Rs. 6, therefore a
potential saving of Rs. 7 – Rs. 6 = Rs. 1 is
possible, if instead of operator 2, operator
1 is assigned on machine1. This is nothing
but opportunity cost in case we assign
operator 2 on machine 1. Similar logic may
be put for opportunity cost of not assigning
the least cost machine to an operator. So, to
form a total opportunity cost matrix, we
Example: Let us understand it with an adopt a very simple two- step method.
example. Let there be four machine and
four operators. Operator 1 charges 6, 7, 7 Method to find the total opportunity
and 8 units on machine I, II III and IV cost matrix:
respectively. Operator 2 charges 7, 8, 9 and Step1:
7 units, operator 3 charges 8, 6, 7 and 6  Select any column & subtract the lowest
units, and operator 4 charges 8, 7, 6 and 9
entry of this column form all the entries
units respectively. The problem is to assign of this column and prepare a new
one operator on one machine so that over – column.
all payment is least.
 Repeat for all column of the matrix. In
Model: The assignment model in the form this problem it will be the “operator
of operator – machine matrix is shown in opportunity” matrix.
figure. The entries in the matrix represent Step2:
unit charge (in Rs.) per hour.  Select any row of the revised matrix
obtained in Step 1 & subtract the lowest
entry of this row from all the entries of
this row.
 Prepare a fresh row.
 Repeat this for rows of the revised
matrix (operator – opportunity matrix).
This would be the total opportunity cost  Subtract this entry from all entries of
matrix. uncovered position.
For example, in the problem of  Add this entry at the junction points of
operator- opportunity matrix as line just drawn. By junction point we
follows (Figure2) mean entries where both horizontal
The total opportunity matrix is as and vertical lines meet.
follows (Figure3)  Check for optimality as per Step 1. If
optimal,go to Step 3; otherwise repeat
Step 2.
Step 3:
Optimal Assignment of the Matrix:
 Select row (or Column), which has least

number of zeros (say, one zero). Note
that all rows (or columns) will have at
least one zeros.
 Make assignment of this row with
corresponding column .Strike- off the
already assigned row and column.
 Now, select row and column which have
minimum number of zeros. Make next
assignment.
 Repeat the process till all rows assigned
to one column.
Optimality test of total opportunity cost
9.3.2 ILLUSTRATION OF OPTIMALITY
matrix:
TEST AND ASSIGNMENT
Step1:
Refer figure (3) apply step I for the check of
 Draw minimum number of possible
optimality. Draw minimum number of
horizontal and/or vertical lines so that
possible horizontal/ vertical lines to cover
all the zeros of the total opportunity
zeros. We can do it in no less than four
cost matrix are covered.
lines, hence preset assignment is optimal.
 If these lines are equal to the number of
rows (or columns) then solution is
optimal.
 Make assignment as per scheme
outlined in Step 3
 If number of vertical and horizontal
lines is less than number of rows, go to
step 2, as the solution may be non-
optimal
Therefore the assignment for figure (3)
Step2: (which is optimal) may be done in this
 From the uncovered entries of Step 1 manner. Column II has only one zero.
(i.e. entries which are not struck by Therefore, assign machine II to operator 3.
lines just drawn) select the lowest Remove column II and row 3.
entry.
From the remainder matrix, it may be
noticed that column III has only one zero.
Therefore assign machine III to operator 4.
Remove row 4 and column III.
In the remainder matrix, only row 1 and 2
and column I and IV remain. In this, column
IV will have one zero at row 2. Therefore,
assign machine IV to operator 2. The last
assignment is the left over machine I to
operator 1.
Thus, the final assignment is:
10 TRANSPORTATION PROBLEM
10.1 INTRODUCTION
Transportation problem is a special variety

of classical linear programming problem. In
this model, shipments of goods from few
locations or origins to others locations or
destinations are planned. Due to specific
characteristics of transportation problem
special approaches are available to solve
them.
10.2 HOW TO SOLVE THE

TRANSPORTATION PROBLEM (TP)?
A typical TP is represented in standard

matrix. From each cell in the main body
contains a small cell at “top right” corner. In
this cell, we write the unit shipping
cost Cij . For three origins and four
destinations TP, the standard matrix
representation is as follows:
To solve the TP, an initial feasible solution

is obtained that source and supply
constrains are satisfied. For this some
approaches are:
1) Least – cost method
2) North –West corner method
3 Vogel’s approximation method.
The initial solution is further tested for

optimality. The total cost is minimized
through Modified Distribution (or MODI)
method
GATE QUESTIONS
Topics
1. FORECASTING
2. INVENTORY CONTROL
3. LINEAR PROGRAMMING
4. PERT AND CPM
5. PROBABILITY AND STATISTICS
6. PRODUCTS AND PROCESS, PLANNING AND CONTROL
7. QUEUING THEORY & TRANSPORTATION
1 FORECASTING
Q.1 When using a simple moving average 1 1

a) b)
to forecast demand, one would 7 5
a) give equal weight to all demand 2 2
data c) d)
7 5
b) assign more weight to the recent [GATE–2005]
demand data
c) include new demand data in the Q.5 In an MRP system, component
average without discarding the demand is
earlier data a) forecasted
d) include new demand data in the b) established by the master
average after discarding some of production schedule
the earlier demand data c) calculated by the MRP system
[GATE–2001] from the master production
schedule
Q.2 The sales of cycles in a shop in four d) ignored
consecutive months are given as 70, [GATE–2007]
68, 82, 95. Exponentially smoothing
average method with a smoothing Q.6 A moving average system is used for
factor of 0.4 is used in forecasting. forecasting weekly demand F1(t)
The expected number of sales in the and F2 (t) are sequences of forecasts
next month is with parameters m1 and m2,
a) 59 b) 72 respectively, where m1 and m2(m1 >
c) 86 d) 136 m2) denote the numbers of weeks
[GATE–2003] over which the moving averages are
taken. The actual demand shows a
Q.3 For a product, the forecast and the step increase from d1 to d2 at a
actual sales for December 2002 certain time. Subsequently,
were 25 and 20 respectively. If the a) neither F1(t) nor F2(t) will catch
exponential smoothing constant (a) up with the value d2
is taken as 0.2, then forecast sales b) both sequences F1(t) and F2(t)
for January 2003 would be will reach d2 in the same period
a) 21 b) 23 c) F1(t) will attain the value d2
c) 24 d) 27 before F2(t)
[GATE–2004] d) F2(t) will attain the value d2
before F1(t)
Q.4 The sales of a product during the [GATE–2008]
last four years were 860, 880, 870
Q.7 Which of the following forecasting
and 890 units. The forecast for the
fourth year was 876 units. If the methods takes a fraction of forecast
error into account for the next
forecast for the fifth year, using
simple exponential smoothing, is period forecast?
a) Simple average method
equal to the forecast using a three
b) Moving average method
period moving average, the value of
the exponential smoothing constant c) Weighted moving average method
d) Exponential smoothening method
α is
[GATE–2009]
Q.8 The demand and forecast for Q.13 Sales data of a product is given in
February are 12000 and 10275, the following table :
respectively. Using single exponential Month January February March April May
smoothening method (smoothening Number of 10 11 16 19 25
coefficient = 0.25), forecast for the unit sold
month of March is
Regarding forecast for the month of
a) 431 b) 9587
June, which one of the following
c) 10706 d) 11000
statements is TRUE?
[GATE–2010]
a) Moving average will forecast a higher
Q.9 In simple exponential smoothing value compared to regression
forecasting, to give higher weight age b) Higher the value of order N, the
to recent demand information, the greater will be the forecast value
smoothing constant must be close to by moving average.
a) –1 b) zero c) Exponential smoothing will forecast
c) 0.5 d) 1.0 a higher value compared to
[GATE– 2013] regression.
d) Regression will forecast a higher
Q.10 In exponential smoothening method, value compared to moving average
which one of the following is true? [GATE-2015(2)]
a) 0≤α≤1 and high value of α is
used for stable demand Q.14 The demand for a two-wheeler was
b) 0≤α≤1 and high value of α is 900 units and 1030 units in April
used for unstable demand 2015 and May 2015, respectively.
c) α≥1 and high value of α is used The forecast for the month of April
for stable demand 2015 was 850 units. Considering a
d) α≤0 and high value of α is used smoothing constant of 0.6, the
for unstable demand forecast for the month of June 2015 is
[GATE-2014(1)] a) 850 units b) 927 units
c) 965 units d) 970 units
Q.11 The actual sales of a product in [GATE-2016(3)]
different months of a particular year
are given below: Q.15 The time series forecasting method
September October November December January February that gives equal weightage to each of
180 280 250 190 240 ? the m most recent observations is
a) Moving average method
The forecast of the sales, using the 4 b) Exponential smoothing with
month moving average method , for linear trend
the month of the February is ______ c) Triple Exponential smoothing
[GATE-2014(3)] d) Kalman Filter
[GATE-2018(1)]
Q.12 For a canteen, the actual demand for
disposable cups was 500 units in January
and 600 units in February. The forecast for
the month of January was 400 units. The
forecast for the month of March
considering smoothing coefficients as 0.75
is ___
[GATE-2015(1)]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
(d) (b) (c) (c) (c) (d) (d) (c) (d) (b) 239 560.75 (d) (d) (a)
EXPLANATIONS
Q.1 (d) Hence, Forecast sales for January

The simple moving average method 2003 would be 24.
can be used if the underlying
demand pattern is stationary. This Q.4 (c)
method include new demand data in Gives:
the average after discarding some of Sales of product during four years
the earlier demand data. were 860, 880, 870 and 890 units.
Let mt = moving average at time t Forecast for the fourth year u4= 876
yt= demand in time t and Forecast for the fifth year, using
n = moving average period simple exponential smoothing, is
y − y t − n +1 equal to the forecast using a three
m t +1 = t +1 period moving average.
n
1
So, u s = (880+870+890)⇒us=880unit
Q.2 (b) 3
We know, from the exponential and By the exponential smoothing method.
smoothing average method, the us = u4 + a (u4 − u4 )
exponential smoothed average u(t+1) 880 = 876 + a(890 – 876)
which is the forecast for the next 4 = a(14)
period (t+1) is given by 4 2
u(t+1)=aut+a(1-a)Ut-1+...a(1-a)nUt N+...∞ =
a =
Now, for sales of the fifth month 14 7
put t = 4 in the above equation,
So, Q.5 (c)
us=au4+a(1-a)u3+a(1-a)2u2+a(1a)2u1 MRP (Material Requirement Planning):
Where, u1 , u 2 , u 3 and u 4 are 70, 68, MRP function is a computational
technique with the help of which the
82 and 95 respectively and a = 0.4 master schedule for end products is
Hence converted into a detailed schedule
u s = 0.4 × 95 + 0.4(1 − 0.4)82 + 0.4 (1 − 0.4 )
2
for raw materials and components
×68 + 0.4(1 − 0.4)3 × 70 used in the end product.
us = 38+19.68+9.792+6.048=73.52 Input to MRP
i) Master production schedule.
Q.3 (c) ii) The bill of material
Given: iii) Inventory records relating to
Forecast sales for December ut = 25 raw materials.
Actual sales for December Xt = 20
Exponential smoothing constant a= 0.2 Q.6 (d)
We know that, Forecast sales for Here F1(t) & F2(t) = Forecasting
January is given by m1 & m2 = Number of weeks
A higher value of m results in better
U t +1 =Ut + a [Xt − u t ]
smoothing. Since here m1>m2 the
= 25 + 0.2 (20 – 25) weight age of the latest demand
= 25 + 0.2×(-5) = 25 – 1 =24 would be more in F2(t).
Hence, F2(t) will attain the value of
d2 before F1(t)
Q.7 (d) The values of smoothing constant
Exponential smoothing method of (α) lie between 0 and 1.
forecasting takes a fraction of A low value of α gives more
forecast error into account for the weightage to the past series and less
next period forecast. weightage to the recent demand
The exponential smoothed average information. Hence, in simple
ut , which is the forecast for the next exponential smoothing forecasting,
period (t + 1) is given by. higher value of α , i.e. 1, gives higher
u t = αy t + α (1 − α ) y t −1 + ...α (1 − α ) y t − n + ∞ weight age to recent demand
n
information and less weight age to

the past series.
= ay t + (1 − a ) ay t −1 + a (1 − a ) y t − 2 + ....
+a (1 − a ) y t −(n −1) + .. 3
n Q.10 (b)
 0≤α≤2
=u t −1 + a ( y t − u t −1 ) High value of ‘α’ means more
= u t −1 + a e t weightage f or immediate forecast.
Less value of ‘α’ means relatively
Where =
et ( y t − u t −1 ) is called error less weightage for immediate
and is the difference between the forecast, or almost equal weightage
last Observation yt and its forecast a for all previous forecast.
period earlier, ut-1. Hence high value of forecast is only
The value of α lies between 0 and 1. chosen when nature of demand is
not reliable rather unstable.
Q.8 (c)
Given, forecast for February Q.11 239 to 241
Ft-1 = 10275 Number of periods = 4, then the past
Demand for February 4 months average sales is fore cast
= 12000 for next 4 months.
Smoothing coefficient 280 + 250 + 190 + 240
α = 0.25 So, = 240.
4
Which is the forecast for the next
period is given by, Q.12 560.75
F1 = α ( D t −1 ) + (1 − α ) × Ft −1 Forecast for
=0.25 = 400 + α ( 500 − 400
= ) 400 + .25 ×100
= 475
(12000 ) + (1 − 0.25) × (10275) Forecast march
= 10706.25≃10706 = 475 + α ( 600 − 475
= ) 560.75
Hence, forecast for the month of
March is 10706. Q.13 (d)
Q.9 (d) Q.14 (d)

Height weight given to recent Month Demand Forecast
demand, the fore Ft = D t ( = αDt −1 + (1 − α ) Ft −1 )
Ft =Ft-1 +α ( D t -Ft-1 ) April 900 850
or Ft −1 (1 − α ) + D t
= May 1030 = 0.6 × 900 + 0.4 × 850 = 880
Thus from the given condition June = 0.6 ×1030 + 0.4 × 880 = 970
Ft-1 (1-α ) =0 ∴ Fjune = 970 units
Or = 1
Q.15 (a)
Equal weightage is given to each of most
recent observations in moving average
method
2 INVENTORY CONTROL
Q.1 Market demand for springs is Demand 2 3 4 5

8,00,000 per annum. A company (in units)
purchases these springs in lots and Probability 0.10 0.35 0.35 0.20
sells them. The cost of making a The stockiest pays Rs. 70 for each
purchase order is Rs.1200. The cost item and he sells each at Rs. 90. If
of storage of springs is Rs.120 per the stock is left unsold in any month,
stored piece per annum. The he can sell the item at Rs. 50 each.
economic order quantity is There is no penalty for unfulfilled
a) 400 b) 2,828 demand. To maximize the expected
c) 4,000 d) 8,000 profit, the optimal stock level is
[GATE–2003] a) 5 units b) 4 units
c) 3 units d) 2 units
Q.2 A company has an annual demand of [GATE–2006]
1000 units, ordering cost of Rs.100/
order and carrying cost of Rs.100/ Q.5 Consider the following data for an
unit/year. If the stock – out cost are item. Annual demand: 2500 units
estimated to be nearly Rs. 400 each per year, Ordering cost: Rs.100 per
time the company runs out – of – order, Inventory holding rate: 25%
stock, then safety stock justified by of unit price quoted by a supplier
the carrying cost will be
a) 4 b) 20 Order quantity Unit price (Rs.)
c) 40 d) 100 (units)
< 500 10
[GATE–2004]
≥ 500 9
Q.3 There are two products P and Q The optimum order quantity (in
with the following characteristics: units) is
a) 447 b) 471
Product Demand Order cost Holding c) 500 d) ≥ 600
(Units) (Rs/order) Cost(Rs./u [GATE–2006]
nit/ year)
P 100 50 4
Q.6 The maximum level of inventory
Q 400 50 1
of an item is 100 and it is achieved
with infinite replenishment rate.
The economic order quantity (EOQ) The inventory becomes zero over
of products P and Q will be in the one and half month due to
ratio consumption at a uniform rate. This
a) 1 : 1 b) 1 : 2 cycle continues throughout the year.
c) 1 : 4 d) 1 : 8 Ordering cost is Rs.100 per order
[GATE–2004] and inventory carrying cost is Rs.10
per item per month. Annual cost (in
Q.4 A stockiest wishes to optimize the Rs.) of the plan, neglecting material
number of perishable items he cost, is
needs to stock in any month in his a) 800 b) 2800
store. The demand distribution for c) 4800 d) 6800
this perishable item is [GATE–2007]
Q.7 In a machine shop, pins of 15 mm Q.9 A company uses 2555 units of an
diameter are produced at a rate of item annually. Delivery lead time is
1000 per month and the same is 8 days. The reorder point (in
consumed at a rate of 500 per number of units) to achieve
month. The production and optimum inventory is
consumption continue a) 7 b) 8
simultaneously till the maximum c) 56 d) 60
inventory is reached. Then [GATE–2009]
inventory is allowed to reduce to
zero due to consumption. The lot Q.10 Annual demand for window frames
size of production is 1000. If backlog is 10000. Each frame cost Rs. 200
is not allowed, the maximum and ordering cost is Rs. 300 per
inventory level is order. Inventory holding cost is Rs.
a) 400 b) 500 40 per frame per year. The supplier
c) 600 d) 700 is willing of offer 2% discount if the
[GATE–2007] order quantity is 1000 or more, and
4% if order quantity is 2000 or
Q.8 The net requirements of an item more. If the total cost is to be
over 5 consecutive weeks are 50-0- minimized, the retailer should
15-20-20. The inventory carrying a) order 200 frames every time
cost and ordering cost are Rs.1 per b) accept 2% discount
item per week and Rs.100 per order c) accept 4% discount
respectively. Starting inventory is d) order Economic Order Quantity
zero. Use “Least Unit Cost [GATE–2010]
Technique” for developing the plan. Q.11 A local tyre distributor expects to
The cost of the plan (in Rs.) is sell approximately 9600 steel belted
a) 200 b) 250 radial tyres next year. Annual
c) 225 d) 260 carrying cost is Rs. 16 per tyre and
[GATE–2007] ordering cost is Rs. 75. The
economic order quantity of the tyres
is
a) 64 b) 212
c) 300 d) 1200
[GATE–2018(2)]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11
(c) (c) (c) (a) (c) (d) (b) (b) (c) (c) (c)
EXPLANATIONS
Q.1 (c) EOQ for Product Q.

Given: 2Co D
D = 800000 per annum ( EOQ )Q =
Ch
C v = 1200 Rs.
2 × 50 × 400
Ch = 120 per piece per annum ( EOQ )P = = 40000
We know that, 4
Economic order quantity (EOQ) = N = 200 .... (ii)
From equation (i) & (ii),
2c0 D
= ( EOQ )P 50 1
ch = =
( EOQ )Q 200 4
2 ×1200 × 800000
=
N
1200
= 16 ×106 ( EOQ )P : ( EOQ )Q = 1: 4
=×
4 103 =4000
Q.4 (a)
Q.2 (c) Profit per unit sold = 90 - 70 = 20 Rs
Given: D = 1000 units, Loss per unit unsold item = 70-50 =
C0= 100 / order. Ch=10 unit/ year 20 Rs
Now consider all the options:
Cs= 400 Rs.
We know that, optimum level of
stock out will be,
2DC0 CS
S.O. = ×
Ch C h + CS
2 ×1000 ×100 400
=S.O. ×
100 100 + 400
= 44.72 × 0.895 = 40
Q.3 (c)
For product P:D = 100 units, C0= 50
Rs. / order. Ch =4 Rs. / unit / year
Economic order quantity (EOQ) for
product P.
2Co D
( EOQ )P = Thus, For stock level of 5 units,
Ch
profit is maximum.
2 × 50 ×100
( EOQ )P = Q.5 (c)
4
= 2500 Given: D = 2500 units per year.
= 50 .... (i) Co = Rs. 100 per order
For product Q : Ch = 25 % of unit price
D = 400 units, Case (I): When order quantity is less
Co = 50 Rs. / order. than 500 units.
Ch =1 Rs. unit / year Then, Unit price = 10 Rs.
and Ch = 25% of 10 = 2.5 Rs. 12
Number of orders in a year=
2Co D 2 ×100 × 2500 1.5
=
EOQ = order= 8 order
Ch 4
So, Annual ordering cost C0A
Q = 447.21 447 units = ordering cost perorder × no. of orders
Total cost = = 100×8 => Rs. 800 per order
Q D Hence,Total Annual cost=6000+ 800
D ×units cost + × Cb + × Co
2 Q = Rs. 6800
447 2500
= 2500 ×10 + × 2.5 + ×100 Q.7 (b)
2 447
Given: Number of items produced
= 25000+ 558.75+559.75=26118 Rs.
per month
Case (II) : when order Quantity is
500 units . Then unit prize = 9.Rs &
Ch =25% of 9=2.25 Rs. Q = 500 units
Total Cost
500 2500
= 2500 × 9 + × 2.25 + ×100
2 500
= 22500 + 562.5 + 500 = 23562.5 Rs.
So, we may conclude from both
cases that the optimum order K = 1000 per month Number of
quantity must be equal to 500 units. items required per month
R=500 per month Lot size q0 = 1000
Q.6 (d) When backlog is not allowed, the
Total annual cost = Annual holding maximum inventory level is given by,
t Annual ordering cost Maximum K−R 1000 − 500
I= × q= ×1000
= 500
level of inventory N = 100 m
K
0
1000
N
So , Average investor = = 50
2 Q.8 (b)
Investor carrying cost Ch = Rs. 10 Given:
per item per month Rs. 1 per item per week
= Rs. 10 ×12 per item per year Co = Rs. 100 per order
= Rs. 120 per item per year Requirements = 50 - 0 - 15 - 20 – 20
N Total cost is the cost of carrying
So Annual holding cost = × Cb inventory and cost of placing order.
2
ChA= 50 ×120
Case (I) Only one order of 105 units

= Rs. 6000 Item per year is placed at starting.
And. Ordering cost C0=100 per order
2555 x
⇒ =
365 8
2555
=
x ×=
8 56 Units.
365
Alternate Method
Given, Demand in a year D=2555 Units
Lead time T = 8 days
Now Number of orders to be placed
Total cost of plan = 155 + 55 + 40 +
in a year
20 = 270 Rs.
Number of days a year 365
Case (II) Now order is placed = two N =
times, 50 units at starting and 55 Lead Time 8
units after 2 week.
nd orders
Total cost of plan=100+140+20=260Rs. Now quantity order each time or
Case (III). The order is placed two reorder point.
times. 65 units at starting and 40 Demand in a years 255
= N = = 56 units.
units after 3rd week. Number of order 365
Total cost of plan =115+15+120=250Rs. 8
Case (IV) Now again order is placed
two times, 85 units at starting and Q.10 (c)
20 units after 4th week. Given 10000
Total cost of plan =135+35+20+ 100
Ordering cost C0= Rs. 300 per order
= 290 Rs.
Holding Ch= Rs. 40 per frame per
So, The cost of plan is least in case
year.
(III) & it is 250 Rs.
Unit cost, Cu = Rs. 200
Q.9 (c) 2C0 D 2×300×10000
In figure, EOQ= = ;387units
Ch 40
ROP = Reorder point
Total cost = Purchase cost + holding
LT = Lead Time = 8 days
cost + ordering cost
TT = Total Time : 365 days
For EOQ=387 units
q = stock level = 2555 units
Q D
Let the reorder quantity be x Total Cost = D×Cu + ×Ch + ×Co
2 Q
Where , Q = EOQ = 387 units
Total cost =
387 10000
100000 × 200 + × 40 × 300
2 387
=2000000+7740+7752=Rs.2015492
Now supplier offers 2% discount if
the order quantity is 1000 or more.
For Q = 1000 units.
Total cost =
1000 10000
Now from the similar triangles 1000 × ( 200 × 0.98 ) + × 40 × 300
2 1000
∆ABC & ∆BDE =1960000 + 20000 + 3000
q x = Rs. 1983000
=
TT LT Supplier also offer 4% discount if
order quantity is 2000 or more.
For Q = 2000 units
Total cost =
2000 10000
1000 × ( 200 × 0.96 ) + × 40 × 300
2 2000
= 1920000 + 40000 + 1500
= Rs. 1961500
It is clearly see that the total cost is
to be minimized, the retailer should
accept 4% discount.
Q.11 (c)
Annual Demand D = 9600
Carrying cost per unit per year Cc =

Rs. 16
Ordering cost per order = Rs. 75
2DCo 2  9600  75
∴ EOQ = = =300
CC 16
3 LINEAR PROGRAMMING
Q.1 A manufacturer produces two types The number of supply points, the
of products, 1 and 2, at production number of demand points, and the
levels of x1 and x2 respectively. The total supply (or total demand) in the
profit is given is 2x1+ 5x2. The balanced transportation problem
production constraints are respectively are
x1+ 3x2 ≤ 40 a) 2, 4, 90 b) 2, 4, 110
3x1+ x2 ≤ 24 c) 3, 4, 90 d) 3, 4, 110
x1+ x2 ≤ 10 [GATE–2005]
x1 > 0, x2 > 0
The maximum profit which can Common Data for Q.4 and Q.5
meet the constraints is
a) 29 b) 38 Consider a linear programming
c) 44 d) 75 problem with two variables and two
[GATE–2003] constraints. The objective function
is: Maximize X1+ X2. The corner
Q.2 A company produces two types of points of the feasible region are (0,
toys : P and Q. Production time of Q 0), (0, 2), (2, 0) and (4/3, 4/3)
is twice that of P and the company
has a maximum of 2000 time units Q.4 If an additional constraint X1+ X2≤ 5
per day. The supply of raw material is added, the optimal solution is
is just sufficient to produce 1500 5 5 4 4
toys (of any type) per day. Toy type a)  ,  b)  , 
3 3 3 3
Q requires an electric switch which
5 5
is available @ 600 pieces per day c)  ,  d) (5,0)
only. The company makes a profit of 2 2
Rs. 3 and Rs. 5 on type P and Q [GATE–2005]
respectively.
For maximization of profits, the Q.5 Let Y1 and Y2 be the decision
daily production quantities of P and variables of the dual and v1 and v2
Q toys should respectively be be the slack variables of the dual of
a) 1000, 500 b) 500, 1000 the given linear programming
c) 800, 600 d) 1000, 1000 problem. The optimum dual
[GATE–2004] variables are
a) Y1 and Y2 b) Y1 and υ1
Q.3 A company has two factories S1, S2, c) Y1 and υ2 d) υ1 and υ2
and two warehouses D1, D2. The [GATE–2005]
supplies from S1 and S2 are 50 and
40 units respectively. Warehouse D1 Q.6 A component can be produced by
requires a minimum of 20 units and any of the four processes I, II, III and
a maximum of 40 units. Warehouse IV. Process I has a fixed cost of Rs.
D2 requires a minimum of 20 units 20 and variable cost of Rs. 3 per
and, over and above, it can take as piece. Process II has a fixed cost Rs.
much as can be supplied. A balanced 50 and variable cost of Rs.1 per
transportation problem is to be piece. Process III has a fixed cost of
formulated for the above situation. Rs. 40 and variable cost of Rs. 2 per
piece. Process IV has a fixed cost of 0 0 0 2 12
Rs.10 and variable cost of Rs. 4 per s 5/3 0 1 -1/3 2
piece. If the company wishes to y 2/3 1 0 1/3 2
X y s t RHS
produce 100 pieces of the
From this, one can conclude that
component, form economic point of
a) the LP has a unique optimal
view it should choose
solution
Work station I II III IV V VI
b) the LP has an optimal solution
Total task time at
the workstation(in that is not unique
minutes) 7 9 7 10 9 6 c) the LP is infeasible
a) Process I b) Process II d) the LP is unbounded
c) Process III d) Process IV [GATE–2008]
[GATE–2005] Q.9 The dual for the LP in Q. 9 is
Q.7 A firm is required to procure three a) Min 6u + 6υ subject to
items (P, Q, and R). The prices 3u + 2 υ ≥ 4
quoted for these items (in Rs.) by 2u + 3 υ ≥6 u,
suppliers S1, S2 and S3 are given in υ≥0
table. The management policy b) Max 6u + 6 υ subject to
requires that each item has to be 3u + 2 υ ≤ 4
supplied by only one supplier and 2u + 3 υ ≤ 6
one supplier supply only one item. u, υ ≥ 0
The minimum total cost (in Rs.) of c) Max 4u + 6 υ subject to
procurement to the firm is 3u + 2 υ ≥ 6
Item Suppliers 2u + 3 υ ≥ 6u,
S1 S2 S3 υ≥0
P 110 120 130 d) Min 4u + 6 υ subject to
Q 115 140 140 3u + 2 υ ≤ 6
R 125 145 165
2u + 3 υ ≤ 6u,
a) 350 b) 360
υ ≥0
c) 385 d) 395
[GATE–2008]
[GATE–2006]
Q.10 For the standard transportation
Common Data For Q.8 and Q.9 linear program with m source and n
Consider the Linear Program (LP) destinations and total supply
Max 4x + 6y subject to 3x + 2y≤ 6 equalling total demand, an optimal
2x + 3y ≤ 6 solution (lowest cost) with the
x ,y ≥ 0 smallest number of non-zero xij
values (amounts from source i to
Q.8 After introducing slack variables s destination j) is desired. The best
and t, the initial basic feasible upper bound for this number is
solution is represented by the table a) mn b) 2(m + n)
below (basic variables are s = 6 and c) m + n d) m + n – 1
t = 6, and the objective function [GATE–2008 ]
value is 0)
-4 -6 0 0 0 Q.11 Consider the following Linear
s 3 2 1 0 6 Programming Problem (LPP):
t 2 3 0 1 6 Maximize Z = 3x1+ 2x2
X Y S t RHS Subject to x1 ≤ 4
After some simplex iteration, the x2 ≤ 6
following table is obtained 3x1+ 2x2 ≥ 18
x1 ≥ 0 , x2≥ 0 x, y ≥ 0
a) The LPP has a unique optimal It has
solution. a) An unbounded objective function.
b) The LPP is infeasible. b) Exactly one optimal solution.
c) The LPP is unbounded. c) Exactly two optimal solutions.
d) The LPP has multiple optimal d) Infinitely many optimal solutions.
solutions. [GATE– 2013 ]
[GATE–2009 ]
Q.16 Two models, P and Q, of a product
Q.12 Simplex method of solving linear earn profits of Rs. 100 and Rs. 80
programming problem uses per piece, respectively. Production
a) all the points in the feasible
times for P and Q are 5 hours and 3
region
b) only the corner points of the hours, respectively, while the total
feasible region production time available is 150
c) intermediate points within the hours. For a total batch size of 40, to
infeasible region maximize profit, the number of units
d) only the interior points in the of P to be produced is ____________.
feasible region
[GATE–2010 ] [GATE– 2017(1) ]
Common Data for Q.13 and Q.14 Q.17 Maximize= Z 5x1 + 3x 2

One unit of product P1 requires 3 kg of Subject to
resources R1 and 1 kg of resources R2. One x1 + 2x1 ≤ 10
unit of product P2 requires 2 kg of
x1 − x 2 ≤ 8
resources R1 and 2 kg of resources R2. The
profits per unit by selling product P1 and P2 x1 , x 2 ≥ 0
are Rs. 2000 and Rs. 3000 respectively. The In the starting Simplex tableau, x1
manufacturer has 90 kg of resources R1 and
and x 2 are non-basic variables and
100 kg of resources R2.
the value of Z is zero. The value of Z
Q.13 The unit worth of resources R2, i.e., in the next Simplex tableau is
dual price of resources R2 in Rs. per _________.
kg is
a) 0 b) 1350 [GATE– 2017(2) ]
c) 1500 d) 2000
[GATE–2011 ] Q.18 The minimum value of 3x + 5y such
that
Q.14 The manufacturer can make a
maximum profit of Rs. 3x + 5y ≤ 15
a) 60000 b) 135000 4x + 9y ≤ 8
c) 150000 d) 200000
[GATE–2011 ] 13x + 2y ≤ 2
x ≥ 0, y ≥ 0
Q.15 A linear programming problem is is ________
shown below.
Maximize 3x + 7y [GATE– 2018(1) ]
Subject to 3x + 7y ≤0
4x + 6y ≤ 8
Q.19 The problem of maximizing
=
z x1 − x 2 subject to constraints
x1 + x 2 ≤ 10 , x1 ≥ 0 , x 2 ≥ 0 and
x 2 ≤ 5 has
a) no solution
b) one solution
c) two solutions
d) more than two solutions
[GATE– 2018(2) ]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(a) (a) (c) (b) (d) (b) (c) (b) (a) (d) (d) (d) (a) (b)
15 16 17 18 19
(b) 15 40 0 (b)
EXPLANATIONS
Q.1 (a) (3x1+x2) +0=24-10
Given: Objective function, 2x1=14⇒x1=7
Z=2xi+5x2 x2=10-x1=10-7=3
and xi+3x2≤40 So, point G (7,3)
3xi+ x2≤24 SO, maximum profit which can meet
xi+ x2≤10 the constraints at G (7,3) is
x1≤0 Zmax = 2 × 7 + 5 × 3 =14 + 15 = 29
x2≤0
Path Duration (day) Q.2 (a)
A-D-L 2 + 10 + 3 = 15 Solve this problem, by the linear
A-E-G-L 2 + 5 + 6 + 3 = 18 programming model.
A-E-H 2 + 5 + 10 = 17 We have to make the constraints
B-H 8 + 1 = 18 from the given conditions.
C-F-K-M 4 + 9 +3+ 8 = 24 For production conditions
C-F-H 4+ 9 +10 =23 P + 2Q ≤ 2000 ...(i)
A-E-K-M 2 + 5 + 3 +8 =18 For raw material
B-G-L 8 + 6 + 3 = 17 P + 2Q ≤ 2000 ...(ii)
B-K-M 8 + 3 + 8 = 19 For electric switch
C-F-G-L 4 + 9 + 6 +3 =22 Q + Q ≤ 600 ...(iii)
For maximization of profit, objective
First we have to make a graph from
function
the given constraints. For draw the
Z = PQ + 5Q ...(iv)
graph, substitute alternatively x1 &
From the equations (i), (ii) & (iii),
x2 equal to zero in each constraints
draw a graph for toy P and Q
to find the point on the x1 & x2 axis.
Now shaded area shows the
common area. Note that the
constraint x1+3x2≤40 does not
affect the solution space and it is the
redundant constraint. Finding the
coordinates of point G by the
equations.
Line (i) and line (ii) intersects at

point A , we have to calculate the
intersection point.
P + 2Q = 2000
P + Q = 1500
After solving their equations, we get,
A (1000, 500)
For point B.,
P + 2Q = 2000
3x1+x2=24 Q = 1500, P = 2000 – 1200 = 800,
x1+x2=10 So, B. (800, 600)
Subtract these equations.
Here shaded are shows the area From the graph, the constraint
bounded by the three line equations X1+X2≤5 has no effect on optimal
(common area). This shaded area region. Now, checking for optimal
has five vertices. solution
Vertices Profit Z = 3 P + 5Q Point Z = X1+X2
(i) 0 (0,0) Z=0 (i) O (0,0) Z =0
(ii) A (1000, 500) Z = 3000 + 2500 = 5500 (ii) A (2,0) Z = 2 + 0 =2
(iii) B (800 , 600) Z = 2400 + 3000 = 5400 (iii) B (0,2) Z = 0 + 2 =2
(iv) C (0,600) Z = 3000 (iv) C(4/3, 4/3) Z = 4/3 + 4/3 = 8/3
(v) D (1500,0) Z = 4500 The optimal solution occurs at point
So, for maximization of profit P = C (4/3, 4/3)
1000 from point (ii)
Q = 500 Q.5 (d)
We know, The inequality constraints
Q.3 (c) are changed to equality constraints
First we have to make a by adding or subtracting a non-
transportation model from the given negative variable from the left-hand
details. sides of such constraints.
These variable is called slack
variables or simply slacks.
They are added if the constraints are
(≤) and subtracted if the constraints
are (≥). These variables can remain
positive throughout the process of
We know, Basic condition for solution and their values in the
transportation model is balanced, if optimal solution given useful
it contains no more than m + n - 1 information about the problem.
non-negative allocations, where m is Hence, Optimum dual variables are
the number of rows and n is the V1 and V2 .
number of columns of the
transportation problem. Q.6 (b)
So, Number of supply point For economic point of view, we
(allocations) = m + n -1 =2+2–1=3 should calculate the total cost for all
Number of demand point = 4 (No. of the four processes.
blank blocks) Total cost = Fixed cost + Variable
Total supply or demand=50+40 = 90 cost × Number of piece
Q.4 (b) For process (I):
Given: Objective function Z = X1+X2 Fixed cost = 20 Rs
From the given corners we have to Variable cost = 3.Rs per piece
make a graph for and Number of pieces = 100
Total cost = 20 + 3×100 = 320 Rs.
For process (II):
Total cost = 50 + 1×100 = 150 Rs.
For process (III):
Total cost = 40 + 2×100 = 240 Rs.
For process (IV):
Total cost = 10 + 4×100 = 410 Rs.
Now, we can see that total cost is
minimum for process (II). So
process (II) should choose for
economic point of view.
Q.7 (c)
In figure
In this there is not one assignment

in each row and in each column.
Step (IV):Find the minimum number
of lines crossing all zeros. This
Step (I) : Reduce the matrix : consists of following sub step
In the effectiveness matrix, subtract (A) Right marked ( ) the rows that
the minimum element of each row do not have assignment.
from all the element of that row. The (B) Right marked ( ) the column that
resulting matrix will have at least have zeros in marked column (not
one zero element in each row. already marked).
(C) Draw straight lines through all
unmarked rows & marked columns.
Step (II) : Mark the column that do

not have zero element. Now subtract
the minimum element of each such
column for all the elements of that
Step (V): Now take smallest element
column.
& add, where two lines intersect.
No change, where single line &
subtract this where no lines in the
block.
Step (III): Check whether an optimal

assignment can be made in the
reduced matrix or not.
For this, Examine rows successively
until a row with exactly one
unmarked zero is obtained. Making So, minimum cost is = 120 + 140 +
square ()4 around it, cross ()# all 125 = 385
other zeros in the same column as
they will not be considered for Q.8 (b)
making any more assignment in that The LP has an optimal solution that
column. is not unique, because zero has
Proceed in this way until all rows appeared in the non-basic variable
have been examined. (x and y) column, in optimal
solution.
X2 =6
Q.9 (a) So 3x1 + 12 =18= 18
The general form of LP is Max Z = CX x1 = 2
Subject to ,AX ≤ B For F 3x1 + 2x2 = 18
And dual f above LP is represented x1 =4
by So 3×4+2x1=18
M in Z = BT Y x2 = 3
Subject to , AT Y≥ CT Hence, E (2,6) or F(4,3)
So, the dual is Min 6u+6v At point E (2.6)
Subject to 3u + 2v ≥4 = 18
2u +3v ≥6 Now at point F (4, 3)
u +v ≥0 = 18
The objective function and the
Q.10 (d) constraint (represent by equation
In a transportation problem with m (iii)) are equal.
origins and n destinations, if a basic Hence, the objective function will
feasible solution has less than m+n - have the multiple solutions as at
1 allocations (occupied cells), the point E & F, the value of objective
problem is said to be a degenerate function (Z-3xi+2x2) is same.
transportation problem.
So, the basic condition for the Q.12 (d)
solution to be optimal without Simplex method provides an
degeneracy is. algorithm which consists in moving
Number of allocations = m + n – 1 from one point of the region of
feasible solutions to another in such
Q.11 (d) a manner that the value of the
Given objective function objective function at the succeeding
Zmax = 3xi + 2x2 point is less (or more, as the case
and constraints are may be) than at the preceding point.
xi ≤ 4 ...(i) This procedure of jumping from one
x2 ≤ 6 ...(ii) point to another is then repeated.
3x1 + 2x2≤18 ...(iii) Since the number of points is finite,
x1 ≥ 0 the method leads to an optimal
x2 ≥ 0 point in a finite number of steps.
Plot the graph from the given Therefore simplex method only uses
constraints & find the common area. the interior points in the feasible
region.
Q.13 (a)
Since, in Zj Row of final (second)
optimum table the value of slack
variable S2 shown the unit worth or
dual price of Resource R2 and the
value of S2 in given below table is
Now, we find the point of zero. Hence the dual Price of
intersection E & F. Resource R2 is zero.
For E. 3x1 + 2x1 = 18 Max Z = 2000 P1 + 3000 P2
(E is the intersection point of S.T. 3P1 + 2P2 ≤ 90 → R1 - Resource
equation (ii)& (iii)) P1 + 2P2 ≤ 100 → R 2 - Resource
P1 , P2 ≥ 0
Solution
Z = 2000 P1 + 3000 P2 + 0. S1 + 0. S2
S.T. 3P1 + 2P2 + S1 = 90
P1 + 2P2 + S2 = 100
P1 , P2 ≥ 0
P1 ≥ 0, P2 ≥ 0, S1 ≥ 0. S2 ≥ 0
First table
The solution of the given problem

must lie in the shaded area. One of
the points O,P. and Q of shaded area
must given the optimum solution of
problem So
Second Table  4
At P  0, 
 3
4 28
= Z 3 = 0 + 7 × = 9.33
3 3
and at Q (2.0)
Z = 3 × 2 + 7× 0 = 6
Hence, there is only a single optimal
solution of the problem which is at
 4
point P  0, 
Q.14 (b)  3
Since all Zj–Cj≥0, an optimal basic Q.16 Max z = 100P+80Q
feasible solution has been attained. 5P + 3Q ≤ 150
Thus, The optimum solution to the
P + Q ≤ 40
given LPP is
Max Z = 2000 ×0 + 3000×45 P Q
+ = 1
= Rs.135000 with P1=0 and P2= 45 30 50
P Q
+ = 1
Q.15 (b) 40 40
We have
Maximize 3x + 7y`
Subject to 3x + 7y ≤ 10
4x + 6y ≤ 8
x, y ≥ 0
From these equation
x1 = 8 & s1 = 2
Max z =5×8+0×2=40
For A (0, 40)

ZA=3200 Q.18 (0)
For B(15, 25) Minimize the objective function,
ZB=3500
Z = 3x + 5y
For c (30, 0)
Zc=3000
Subject to constraints
Maximum of B, P=15, Q= 25
3x + 5y ≤ 15
Q.17 (40)
Maxz= 5x1 + 3x 2 + 0 × s1 + 0 × s 2 4x + 9y ≤ 8
Constraint
13x + 2y ≤ 2
x1 + 2x1 + s1 = 10
x ≥ 0, y ≥ 0
x1 − x 2 + s 2 =
8
3 x + 5 y = 15 ( x = 0, y = 3) and ( y = 0, x = 5 ) 
 8 
4 x + 9 y = 8  x = 0, y =  and ( y = 0, x = 2 ) 
 9  
  2 
13 x + 2 y = 2 ( x = 0, y = 1) and  y = 0, x = 
  13 
∴ The value of objective function at points
Z0 = 3  0 + 5  0 = 0 (min)
8
ZA = 3  0 +  5 = 4.44
9
2 96
ZB = 3  + 5 = 0.46
109 109
2
ZC 3 
= + 0   
13
∴ Zmin = 0
Q.19 (b)
Max., Z = x1 − x2
Constratins : x1 + x2 ≤ 10 ;
x1 ≥ 0, x2 ≥ 0 and x2 ≤ 5
Z ( 0, 5 ) =0 − 5 =− 5
Z ( 5, 5 ) = 5 − 5 = 0
Z (10, 0 ) = 10 − 0 = 10
Z max = 10 at (10, 0 )
∴ The problem has one solution
4 PERT & CPM
Q.1 A project consists of activities A to M Q.6 The expected completion time of the
shown in the net in the following project is
figure with the duration of the a) 238 days b) 224 days
activities marked in days c) 171 days d) 155 days
[GATE–2006]
Q.7 The standard deviation of the
critical path of the project is
a) √151 days b) √155 days
c)√200 days d) √238 days
The project can be completed [GATE–2006]
a) between 18, 19 days Q.8 For the network below, the
b) between 20, 22 days objective is to find the length of the
c) between 24, 26 days shortest path from node P to node G.
d) between 60, 70 days Let dij be the length of directed arc
[GATE–2003] from node i to node j. Let Sj be the
Q.2 The symbol used for Transport in length of the shortest path from P to
work study is node j. Which of the following
a) ⟹ b) T equations can be used to find SG ?
c)  d) ∇
[GATE–2004]
Q.3 In PERT analysis a critical activity has
a) maximum float b) zero float
c) maximum cost d) minimum cost a) SG = Min{SQ, SR}
[GATE–2004] b) SG = Min{SQ – dQG, SR – dRG}
c) SG = Min{SG + dQG, SR + dRG}
Q.4 A project has six activities (A to F ) d) SG = Min{dQG, dRG}
with respective activity duration 7, [GATE–2008]
5, 6, 6, 8, 4 days. The network has
three paths A-B, C -D and E – F. All Q.9 A set of 5 jobs is to be processed on
the activities can be crashed with a single machine. The processing
the same crash cost per day. The time (in days) is given in the table
number of activities that need to be below. The holding cost for each job
crashed to reduce the project is Rs. K per day.
duration by 1 day is Job Processing time
P 5
a) 1 b) 2 Q 2
c) 3 d) 6 R 3
[GATE–2005] S 2
T 1
Q.5 An assembly activity is represented A schedule that minimizes the total
on an Operation Process Chart by inventory cost is
the symbol a) T -S -Q.R-P b) P-R-S -Q.T
a)  b) A c) T -R-S-Q.P d) P-Q.R-S –T
c) D d) O [GATE–2008]
[GATE–2005]
Common Data For Q.10 and Q.11 Q.13 The expected time (te) of a PERT
Consider the following PERT network: activity in terms of optimistic time
The optimistic time, most likely time and t0, pessimistic time (tp) and most
pessimistic time of all the activities likely time (tl) is given by
are given in the table below: t + 4t1 + t p t + 4t p + t1
a) t e = o b) t e = o
6 6
t + 4t1 + t p t + 4t p + t1
c) t e = o d) t e = o
3 6
[GATE–2009]
Common Data For Q.14 and Q.15
Four jobs are to be processed on a machine

as per data listed in the table.
Job Processing time (in days) Due date
1 4 6
2 7 9
3 2 19
4 8 17
Q.14 If the Earliest Due Date (EDD) rule is

used to sequence the jobs, the
number of jobs delayed is
Q.10 The critical path duration of the a) 1 b) 2
network (in days) is c) 3 d) 4
a) 11 b) 14 [GATE–2010]
c) 17 d) 18
[GATE–2008] Q.15 Using the Shortest Processing Time
(SPT) rule, total tardiness is
Q.11 The standard deviation of the critical a) 0 b) 2
path is c) 6 d) 8
a) 0.33 b) 0.5 [GATE–2010]
c) 0.77 d) 1.66
[GATE–2008] Q.16 The project activities, precedence
Q.12 Six jobs arrived in a sequence as relationships and durations are
given below: described in the table. The critical
Jobs Processing Time (days) path of the project is
I 4 Activity Precedence Duration (in
II 9 days)
III 5 P - 3
IV 10 Q - 4
V 6 R P 5
S Q 5
VI 8
T R, S 7
Average flow time (in days) for the U R, S 5
above jobs using Shortest V T 2
Processing time rule is W U 10
a) 20.83 b) 23.16 a) P-R-T -V b) Q.S -T –V
c) 125.00 d) 139.00 c) P-R-U -W d) Q.S -U –W
[GATE–2009] [GATE–2010]
Common Data for Q.17and Q.18 Q.19. A project starts with activity A and
For a particular project, eight activities are ends with activity F. The precedence
to be carried out. Their relationships with relation and durations of the activities are
other activities and expected durations are
as per the following table:
mentioned in the table below.
Activity Predecessors Durations(days)
A - 3
B A 4
C A 5
D A 4
E B 2
F D 9
g c, e 6
h f, g 2
The minimum project completion time (in
Q.17 The critical path for the project is days) is ______
a) a - b - e - g – h b) a - c - g – h
c) a - d - f - h d) a- b - c - f – h [GATE–2017(2)]
[GATE–2012]
Q.18 If the duration of activity f
alone is changed from 9 to 10 days, Q.20 The arc lengths of a directed graph
then the of a project are as shown in the figure. The
a) critical path remains the same & shortest path length from node 1 to node 6
the total duration to complete is _______.
the project changes to 19 days. [GATE–2018(2)]
b) critical path and the total
duration to complete the project
remains the same.
c) critical path changes but the
total duration to complete the
project remains the same.
d) critical path changes and the
total duration to complete the
project changes to 17 days.
[GATE–2012]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(c) (a) (b) (c) (d) (d) (a) (c) (a) (d) (c) (a) (a) (c)
15 16 17 18 19 20
(d) (d) (c) (a) 30 7
EXPLANATIONS
Q1 (c) For simple projects, the critical path

The various path and their duration can be determined quite quickly by
are :- enumerating all paths and evaluating
the time required to complete each.
There are three paths between and
af. The total time along each path is
(i) For path a -b -d - f
Tabdf =30+ 40+ 25+ 20 = 115 days
(ii) For path a -c -e – f
Here maximum time along the path Tacef =30 + 60 + 45 + 20 = 155 days
CFKM . So, it is a critical path and (iii) For path a -b -e – f
project can be completed in Tabef = 30+ 40 + 45 + 20 = 135 days
4+9+3+8 =24 days. Now, path a -c -e - f be the critical
path time or maximum excepted
Q.2 (a) completion time T = 155 days
Q.3 (b) Q.7 (a)

PERT (Programme Evaluation and The critical path of the network is
Review Technique) uses even a -c -e - f .
oriented network in which successive Now, for variance.
events are joined by arrows. Float is Task Variance(days2)
the difference between the maximum a 25
time available to perform the c 81
activity and the activity duration. In e 36
PERT analysis a critical activity has
f 9
zero float.
Total variance for the critical path
Q.4 (c) = 25 + 81 + 36 + 9 => 151 days2
The 3 activity need to be crashed to We know the standard deviation of
reduce the project duration by 1 day. critical path is
=σ =
Vcritical 151days
Q.5 (d)
In operation process chart an
assembly activity is represented by Q.8 (c)
the symbol O There are two paths to reach from
node P to node G.
Q.6 (d) (i) Path P -Q -G (ii) Path P - R -G
We have to make a network diagram For Path P -Q -G ,
from the given date. Length of the path SG =SQ +d QG
For Path P -R -G ,
Length of the path SG =SR +d RG
So, shortest path
SG = Min {SQ + d QG , SR +d RG }
double lines) Therefore, critical path
duration of the network is = 6 + 4 +
5 + 3 = 18 days
Q.11 (c)
The critical path is 1 3 5 6 7
Variance along this critical path is,
σ 2 = σ 12−3 + σ 32−5 + σ 52−6 + σ 62−7
Q.9 (a) 1 4 1 1 7
Total inventory cost will be = + + + =
9 9 9 9 9
minimum, when the holding cost is We know,
minimum. Now, from the Johnson’s
algorithm, holding cost will be ( )
Standard deviation = variance σ 2
minimum, when we process the 7
least time consuming job first. From == = 0.88
this next job can be started as soon 9
as possible. Now, arrange the jobs in The most appropriate answer is
the manner of least processing time. 0.77
T - S -Q - R - P or T -Q - S - R - P
(because job Q and S have same Q.12 (a)
processing time). In shortest processing time rule, we
have to arrange the jobs in the
Q.10 (d) increasing order of their processing
time and find total flow time.
So, job sequencing are I - III - V - VI -
II – IV
Jobs Processing Flow time (days)
Time (days)
I 4 4
III 5 4+5=9
V 6 9 + 6 = 15
VI 8 15 + 8 =23
II 9 23 + 9 = 32
IV 10 32 + 10 = 42
Now Total Flow Time
t=4+9+15+23+32+42=125
Total flow time
Average flow time =
Number of jobs
125
Taverage = =2083day
6
Q.13 (a)
Under the conditions of uncertainty,
the estimated time for each activity
for PERT network is represented by
a probability distribution. This
probability distribution of activity
time is based upon three different
Critical path = 1→ 3→ 5→6→7 (Marked by
time estimates made for each Q.16 (d)
activity. These are as follows. We have to draw a arrow diagram
t 0 = the optimistic time, is the from the given date.
shortest possible time to complete
the activity if all goes well.
t p = the pessimistic time, is the
longest time that an activity could
take if everything goes wrong
t l = the most likely time, is the
estimate of normal time an activity Here Four possible ways to
would take. complete the work.
Path Total duration (days)
The expected time (t e ) of the
(i) P–R–T–V T = 3 + 5 + 7 + 2 = 17
activity duration can be (ii) Q –S–T–V T = 4 + 5 + 7 + 2 = 18
approximated as the arithmetic (iii) Q–S–U–W T = 4 + 5 + 5 + 10 = 24
mean of (t0-tp)/2 and 2t1 Thus, (iv) P–R–U–W T = 3 + 5 + 5 + 10 = 23
1
( t e ) =  2t l +
( t o +t p )  = t o +4t l +t p . The critical path is the chain of
activities with the longest time
3 2  6
  durations
So, Critical path = Q – S – U – W
Q.14 (c)
In the Earliest due date (EDD) rule, Q.17 (c)
the jobs will be in sequence
according to their earliest due dates.
Table shown below:
For path Duration

a-b-e-g-h = 3 + 4 + 2 + 6 + 2= 17 days
a-c-g-h = 3 + 5 + 6 + 2 = 16 days
We see easily from the table that, a-d-f-h = 3 + 4 + 9 + 2 = 18 days
job 2, 4 & 3 are delayed. The critical path is one that takes
Number of jobs delayed is 3. longest path.
Hence, path a-d-f-h=18 days is
Q.15 (d) critical path
by using the shortest processing
time (SPT) rule & make the table Q.18 (a)
From previous question
For critical path a-d-f-h = 18 days,
the duration of activity f alone is
changed from 9 to 10 days, then a-d-
f-h=3+4+10+2=19days
Hence critical path remains same
and the total duration to complete
So, from the table the project changes to 19 days.
Total Tardiness = 4 + 4 =8
Q.19 : 30 day
Q.20 (7)
Shortest path is
Shortest length = 7
It is the problem of shortest path which will be

7.
In this question do not confuse with critical

path. Examiner ask shortest path. Critical path
is the longest path which is not asked in this
question.
5 PROBABILITY & STATISTICS
Q.1 A residential school stipulates the Q.4 Demand during lead time with
study hours as 8.00 pm to 10.30 pm. associated probabilities is shown
Warden makes random checks on a below:
certain student 11 occasions a day Demand 50 70 75 80 50
during the study hours over a period Probability 0.15 0.14 0.21 0.20 0.30
of 10 days and observes that he is Expected demand during lead time is ___
studying on 71 occasions. Using [GATE-2014]
95% confidence interval, the Q.5 Jobs arrive at a facility at an average
estimated minimum hours of his rate of 5 ir an 8 hour shift. The
study during that 10 day period is arrival of the jobs follows Poisson
a) 8.5 hours b) 13.9 hours distribution. The average service
c) 16.1 hours d) 18.4 hours time of a job on the facility is 40
[GATE–2003] minutes. The service time follows
exponential distribution. Idle time (in
Q.2 The distribution of lead time hours) at the facility per shift will be
demand for an item is as follows: 5 14
Lead time demand Probability a) b)
7 3
80 0.20
7 10
100 0.25 c) d)
120 0.30 3 3
[GATE-2014]
140 0.25
The reorder level is 1.25 times the Q.6 Among the four normal distributions
expected value of the lead time with probability density functions as
demand. The service level is shown below which one has the
a) 25% b) 50% lowest variance?
c) 75% d) 100%
[GATE–2005]
Q.3 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 a) I b) II
c) Erlang d) Beta c) III d) IV
[GATE-2014] [GATE-2015]
ANSWER KEY:
1 2 3 4 5 6
(c) (d) (b) 75.55 (b) (d)
EXPLANATIONS
Q.1 (c) 5
λ=
Warden checks the student 11 8
occasions a day during the study 60 3
hours over a period of 10 days. µ= .
40 2
So, Total number of observations in
λ
10 days. Probability of idleness = = 1 −
= 11×10 = 110 observations µ
Study hours as 8.00 pm to 10.30 pm. 5 2 7
=1 − × =
So. total study hours in 10 days 8 3 12
= 2.5×10 = 25 hours. 7
Number of occasions when student Idle time (in hrs) per shift= ×12
12
studying = 71 14
So, Probability of studying =
3
No.of obsrnations when student studing
P=
Total observations
71
= = 0.645
110
Hence,
Minimum hours of his study during
10 day period is
T = P × Total study hours in 10 days
= 0.645 × 25 = 16.1 hours
Q.2 (d)
The expected value of the lead time
demand=
80×0.20+100×0.25+120×0.30+140
×0.2 =12
Reorder level is 1.25 time the lead
time demand.
So, record value = 1.25×112 = 140
Hence both the maximum demand
or the reorder value are equal.
Hence , service level = 100%
Q.3 (b)
Q.4 (74.55)
Expected Demand = 50 × 0.15 + 70
× 0.14 + 75×0.21 + 80 × 0.20 +
85×0.3 = 74.55
Q.5 (b)
6 PRODUCTS AND PROCESS, PLANNING AND CONTROL
Q.1 Production flow analysis (PFA) is a Q.4 A soldering operation was work –
method of identifying part families sampled over two days (16 hours)
that uses data from during which an employee soldered
a) Engineering drawings 108 joints. Actual working time was
b) Production schedule 90% of the total time and the
c) Bill of materials performance rating was estimated
d) Route sheets to be 120 per cent. If the contract
[GATE–2001 ] provides allowance of 20 percent of
the time available, the standard time
Q.2 Two machines of the same for the operation would be
production rate are available for a) 8 min b) 8.9 min
use. On machine 1, the fixed cost is c) 10 min d) 12 min
Rs.100 and the variable cost is Rs. 2 [GATE–2004 ]
per piece produced. The
corresponding numbers for the Q.5 An electronic equipment
machine 2 are Rs.200 and Re. 1 manufacturer has decided to add a
respectively. For certain strategic component subassembly operation
reasons both the machines are to be that can produce 80 units during a
used concurrently. The sales price of regular 8–hours shift. This operation
the first 800 units is Rs. 3.50 per consist of three activities as below
unit and subsequently it is only Rs. Activity Standard time (min)
3.00. The breakeven production rate M. Mechanical assembly 12
for each machine is E. Electric wiring 16
a) 75 b) 100 T. Test 3
c) 150 d) 600 For line balancing the number of work
[GATE–2003 ] stations required for the activities M, E
& T would respectively be
Q.3 A standard machine tool and an a) 2, 3, 1 b) 3, 2, 1
automatic machine tool are being c) 2, 4, 2 d) 2, 1, 3
compared for the production of a [GATE–2004 ]
component. Following data refers to
the two machines. Q.6 A welding operation is time-studied
Standard Automatic during which an operator was pace-
Machine Machine Tool rated as 120%. The operator took,
Tool on an average, 8 minutes for
Setup time 30 min 2 hours
producing the weld–joint. If a total
Machining 22 min 5 min of 10% allowances are allowed for
time per piece
this operation. The expected standard
Machine Rs. 200 per Rs. 800 per
rate hour hour production rate of the weld –joint
The break even production batch (in units per 8 hour day) is
size above which the automatic a) 45 b) 50
machine tool will be economical to c) 55 d) 60
use, will be [GATE–2005 ]
a) 4 b) 5 Q.7 The table gives details of an
c) 24 d) 225 assembly line. What is the line
[GATE–2004 ] efficiency of the assembly line?
a) 70% b) 75% Week 1 2 3 4 5 6
c) 80% d) 85% Demand 1000 100 1000 1000 1200 1200
[GATE–2006 ] Ignore lead times for assembly and
sub-assembly. Production capacity
Q.8 An manufacturing shop processes (per week) for component R is the
sheet metal jobs, wherein each job bottleneck operation. Starting with
must pass through two machines zero inventory, the smallest capacity
(M1 and M2, in that order). The that will ensure a feasible production
processing time (in hours) for these plan up to week 6 is
jobs is a) 1000 b) 1200
Machine Jobs c) 2200 d) 2400
P Q R S T U
[GATE–2008 ]
M1 15 32 8 27 11 16
M2 6 19 13 20 14 7 Q.11 Vehicle manufacturing assembly
The optimal make – span (in hours) line is an example of
of the shop is a) product layout b) process layout
a) 120 b) 115 c) manual layout d) fixed layout
c) 109 d) 79 [GATE–2010 ]
[GATE–2006 ]
Q.12 The word ‘kanban’ is most
Q.9 Capacities of production of an item appropriately associated with
over 3 consecutive months in a) Economic order quantity
regular time are 100, 100 and 80 b) Just-in-time production
and in overtime are 20, 20 and 40. c) Capacity planning
The demands over those 3 months d) Product design
are 90, 130 and 110. The cost of [GATE–2011 ]
production in regular time and
overtime are respectively Rs. 20 per Q.13 Which one of the following is NOT a
item and Rs. 24 per item. Inventory decision taken during the aggregate
carrying cost is Rs. 2 per item per production planning stage?
month. The levels of starting and a) Scheduling of machines
final inventory are nil. Backorder is b) Amount of labour to be committed
not permitted. For minimum cost of c) Rate at which production should
plan, the level of planned production happen
in overtime in the third month is d) Inventory to be carried forward
a) 40 b) 30 [GATE–2012 ]
c) 20 d) 0
[GATE–2007]
Q.14 During the development of a
Q.10 The product structure of an product, an entirely new process
assembly P is shown in the figure. plan is made based on design logic,
examination of geometry and
tolerance information. This type of
process planning is known as
a) retrieval
b) generative
c) variant
d) group technology based
[GATE-2015]
Estimated demand for end product Q.15 Following data refers to the jobs (P,
P is as follows: Q, R, S) which have arrived at a
machine for scheduling. The
shortest possible average flow time
is ___________ days.
[GATE-2017(1)]
Q.16 Processing times (including setup

times) and due dates for six jobs
waiting to be processed at a work
centre are given in the table. The
average tardiness (in days) using
shortest processing time rule is
___________ (correct to two decimal
places).
[GATE-2017(2)]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(d) (a) (d) (d) (a) (a) (c) (b) (b) (c) (a) (b) (a) (d)
15 16
31 6.33
EXPLANATIONS
Q.1 (d) So at breakeven point,

Production flow analysis (PFA) is a 300 + 3 n = 3.50 (n + n)
comprehensive method for material 300 + 3 n = 3.50 2 n
analysis, Part family formation, 300 = 4 n
design of manufacturing cells and 300
facility layout design. =n = 75 units
4
These information are taken from
the route sheet. Q.3 (d)
Let The standard machine tool,
Q.2 (a) Total cost = Fixed cost + Variable
Given : For machine M1 : cost×Number. of components
Fixed cost 100 = Rs.
( TC )SMT =  + × x1  × 200 =
30 22
Variable cost 2 = Rs. per piece
For machine M2 :  60 60 
Fixed cost = 200 Rs. 30 22 220
× 200 + × x1 × 200 = 100 + x1
Variable cost = 1 Rs. per piece 60 60 3
Let, n number of units are produced ...(i)
per machine, when both the machines If automatic machine tool produce
are to be used concurrently. x2 Number of components then the
We know that, total cost for automatic machine tool
Total cost = Fixed cost + Variable is
cost × Number of units  5 
For M1 Total cost of production ( TC )AMT =  2 + x2  = 800
 60 
= 100 + 2× n 200
For M2 Total cost of production = 1600 + x2 ...(ii)
3
= 200 + n
Let, at the breakeven production
Hence,
batch size is x and at breakeven
Total cost of production on machine
point.
M1 & M2 is
= 100 +2 n + 200 + n ( TC )SMT = ( TC )AMT
= 300 + 3 n 200x 200x
=
100 + =1600 + ...(ii)
We know, Breakeven point is the 3 3
point, where total cost of production 200x 200x
is equal to the total sales price − − 1600 − 100
3 3
Assuming that Number of units 20x
produced are less than 800 units = 1500
3
and selling price is Rs. 3.50 per unit.
1500 × 3 Q.6 (a)
=x = 225
20 Given: Rating factor = 120%
So, breakeven production batch size Actual time Tactual = 8 min
is 225. Normal time Tnormal =actual
time × Rating factor
Q.4 (d) Tnormal =8×
120
=9.6 min
Total time =16 hours =16×60 100
=960 min 10% allowance is allowed for this
Actual working time was 90 % total operation.
time So, Standard time
So, Actual time Tactual = 90% of 960 T
Tnormal = normal
10
=
90
× 960. Tactual =
960 min 1−
100 100
Performance rating was 120 percent. 9.6
= = 10.67 min
So Normal time Tactual = 120% of 864 0.9
Hence, standard production rate of
120
= × 960. Tactual =
1036.8 min the weld joint
100 8 × 60
Allowance is 20% of the total = = 45 45 Units.
10.67
available time.
So total standard time
Q.7 (c)
Tnormal 1036.8 1036.8
T= = = Total time used = 7+9+7+10+9+6
standard
 20  1 − 0.2 0.8 = 48 min
1 − 
 100  Number of work station = 6
= 1296 min Maximum time per work station
Number of joints soldered, N = 108 (cycle time) = 10 min
Hence, Standard time for operation We know
1296 Total time used
= = 12 min Line efficience ηL =
108 Number of work stations × cycle time
48
η= = 0.8
= 80%
Q.5 (a) 6 ×10
L
Number of units produced in a day

= 80 units. Q.8 (b)
Working hours in a day = 8 hours First finding the sequence of jobs,
Now, Time taken to produce on unit which are entering in the machine.
8 The solution procedureis described
is, T = × 60 = 6 min
80 below :
Activity Standard No. of work By examining the rows, the smallest
time(min) stations machining time of 6 hours on
(S.T. / T) machine M2 . Then scheduled Job P
M. Mechanical assembly 12 12/6 = 2
last for machine M2
E Electric wiring 16 16/6=2.666=
3 P
T. Test 3 3/6 = 0.5 = 1 After entering this value, the next
Number of work stations are the smallest time of 7 hours for job U
whole numbers, not the fractions. on machine M2 . Thus we schedule
So, number of work stations job U second last for machine M2
required for the activities M, E and as shown below
T would be 2, 3 and 1, respectively.
U P From the table,
After entering this value, the next For 1st month there is no need to
smallest time of 8 hours for job R on overtime, because demand is 90
machine M1 . Thus we schedule job units and regular time production is
R first as shown below. 100 units , therefore 10 units are
R U P excess in amount. For 2nd month
After entering this value the next the demand is 130 unit and
smallest time of 11 hours for job T production capacity with overtime
on machine M1 . Thus we schedule is 100 +20 = 120 units, therefore 10
job T after the job R . units (130 120 =10) are short in
R T U P amount, which is fulfilled by 10
After this the next smallest time of units excess of 1st month. So at the
19 hours for job Q on machine M2. end of 2nd month there is no
Thus schedule job Q left to the U and inventory.
remaining job in the blank block. Now for the 3rd month demand is
Now the optimal sequence as : 110 units and regular time
production is 80 units. So remaining
R T S Q U P 110 – 80 = 30 units are produced in
Then calculating the elapsed time overtime to fulfil the demand for
corresponding to the optimal minimum cost of plan.
sequence, using the individual
processing time given in the Q.10 (c)
problem. The detailed are shown in From the product structure we see
table. that 2 piece of R is required in
Jobs MI M2 production of 1 piece P .
In Out In Out So, demand of R is double of P.
R 0 8 8 8 + 13 = 21
T 8 8 + 11 = 19 21 21+14 = 35
S 19 19+ 27 = 46 46 46+20 = 66
Q 46 46+ 32 = 78 78 78+19 = 97
U 78 78+ 16 = 94 97 97+7= 104
P 94 94+ 15 = 109 109 109+6= 115
We can see from the table that all
the operations (on machine 1st and
machine 2nd) complete in 115
hours. So the optimal make-span of
the shop is 115 hours. We know that for a production
system with bottleneck the
Q.9 (b) inventory level should be more than
We have to make a table from the zero.
given data. So, 6R = 12800 ≥ 0
For minimum inventory
6R-12800=0
6R =12800
R = 2133
≃ 2200
Hence, the smallest capacity that
will ensure a feasible production
plan up to week 6 is 2200.
Q.11 (a) 124
Vehicle manufacturing assembly
= = 31days
4
line is an example of product layout. Q.15 (6.33)
A product-oriented layout is Jobs arranged according to shortest
appropriate for producing one processing time
standardized product, usually in
large volume. Each unit of output
requires the same sequence of
operations from beginning to end.
Q.12 (b)
Kanban Literally, a “Visual record”;
a method of controlling materials
flow through a Just-in-time
manufacturing system by using
cards to authorize a work station to
transfer or produce materials.
Q.13 (a)
Costs relevant to aggregate 38
production planning is as given ∴ Average Tardiness = =
6.33
6
below.
(i) Basic production cost : Material
costs, direct labour costs, and
overhead cost.
(ii) Costs associated with changes in
production rate : Costs involving
in hiring, training and laying off
personnel, as well as, overtime
compensation.
(iii) Inventory related costs.
Hence, from above option (A) is not
related to these costs. Therefore
option (A) is not a decision taken
during the APP.
Q.14 (31)
sequence of the job by shortest
processing rule
Q S P R
Avg Job Flow Time

Total Job Flow Time
=
no. of Jobs
7 QUEUING THEORY & TRANSPORTATION
Q.1 Arrivals at a telephone booth are 4/hour) and exponential service (μ

considered to be Poisson, with an = 4/hour). The number in the
average time of 10 minutes between system is restricted to a maximum
successive arrivals. The length of a of 10. The probability that a person
phone call is distributed who comes in leaves without joining
exponentially with mean 3 minutes. the queue is
The probability that an arrival does 1 1
a) b)
not have to wait before service is 11 10
a) 0.3 b) 0.5 1 1
c) 0.7 d) 0.9 c) d)
9 2
[GATE–2002]
[GATE–2005]
Q.2 The supplies at three sources are 50,
40 and 60 unit respectively while Q.5 The number of customers arriving
the demands at the four destinations at a railway reservation counter is
are 20, 30, 10 and 50 unit. In solving Poisson distributed with an arrival
this transportation problem rate of eight customers per hour.
a) a dummy source of capacity 40 The reservation clerk at this counter
unit is needed. takes six minutes per customer on
b) a dummy destination of capacity an average with an exponentially
40 unit is needed. distributed service time. The average
c) no solution exists as the problem number of the customers in the
is infeasible. queue will be
d) no solution exists as the problem a) 3 b) 3.2
is degenerate. c) 4 d) 4.2
[GATE–2002] [GATE–2007]
Q.3 A maintenance service facility has Q.6 In an M/M/1 queuing system, the
Poisson arrival rates, negative number of arrivals in an interval of
exponential service time and length T is a Poisson random
operates on a ‘first come first variable (i.e. the probability of there
served’ queue discipline. being arrivals in an interval of
Breakdowns occur on an average of
e − λT (λT) n
3 per day with a range of zero to length T is ). The
eight. The maintenance crew can n!
service an average of 6 machines probability density function f (t) of
per day with a range of zero to the inter – arrival time is
e− λ t
2
seven. The mean waiting time for an a) λ (e )

2 − λ2 t
b)
item to be serviced would be λ2
a)
1
day
1
b) day e − λt
c) λe − λt d)
6 3 λ
c) 1 day d) 3 day [GATE–2008]
[GATE–2004]
Q.7 Little’s law is a relationship between
Q.4 Consider a single server queuing a) stock level and lead time in an
model with Poisson arrivals (λ = inventory system
b) waiting time and length of the Q.12 At a work station, 5 jobs arrive
queue in a queuing system every minute. The mean time spent
c) number of machines and job due on each job in the work station is
dates in a scheduling problem 1/8 minute. The mean steady state
d) uncertainty in the activity time number of jobs in the system is ___
and project completion time [GATE-2014]
[GATE–2010]
Q.13 In the notation (a/b/c) : (dI el f) for
summarizing the characteristics of
Q.8 Cars arrive at a service station
according to Poisson’s distribution queueing situation, the letters b and
d stand respectively for
with a mean rate of 5 per hour. The
service time per car is exponential a) service time distribution &
with a mean of 10 minutes. At queue discipline
b) number of servers & size of
steady state, the average waiting
time in the queue is calling source
c) number of servers & queue
a) 10 minutes b) 20 minutes
discipline
c) 25 minutes d) 50 minutes
[GATE–2011] d) service time distribution &
maximum number allowed in
Q.9 Customer arrive at a ticket counter system
at a rate of 50 per hr and tickets are [GATE-2015]
issued in the order of their arrival. Q.14 In a single-channel queuing model,
The average time taken for issuing a the customer arrival rate is 12 per
ticket is 1 min. Assuming that hour and the serving rate is 24 per
customer arrivals from a Poisson hour. The expected time that a
process and service times and customer is in queue is ___minutes.
exponentially distributed, the [GATE-2016]
average waiting time is queue in
min is
a) 3 b) 4 Q.15 For a single server with Poisson
c) 5 d) 6 arrival and exponential service time,
[GATE– 2013] the arrival rate is 12 per hour.
Which one of the following service
Q.10 If there are m sources and n rates will provide a steady state
destinations in a transportation finite queue length?
matrix, the total number of basic
variables in a basic feasible solution a) 6 per hour b) 10 per hour
is
a) m+ n b) m+ n+ 1 c) 12 per hour d) 24 per hour
c) m + n- 1 d) m
[GATE-2014] [GATE-2017(2)]
Q.11 The total number of decision
variables in the objective function of Q.16 A product made in two factories p
an assignment problem of size n x n and Q, is transported to two
(n jobs and n machines) is
destinations, R and S. The per unit
a) n2 b) 2n
c) 2n -1 d) n costs of transportation (in Rupees)
[GATE-2014] from factories to destinations are as
per the following matrix:
Factory P produces 7 units and
factory Q produces 9 units of the
product. Each destination requires 8
units. If the north-west corner
method provides the total
transportation cost as X (in Rupees)
and the optimized (the minimum)
total transportation cost Y (in
Rupees), then (X-Y), in Rupees, is
a) 0 b) 15
c) 35 d) 105
[GATE-2017(2)]
Q.17 The arrival of customers over fixed

time intervals in a bank follow a
Poisson distribution with an average
of 30 customers/hour. The
probability that the time between
successive customer arrivals is
between 1 and 3 minutes is _______
(correct to two decimal places).
[GATE-2018(2)]
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(c) (b) (a) (a) (b) (c) (b) (d) (c) (c) (a) 1.67 (a) 2.5
15 16 17
(d) (*) 0.383
EXPLANATIONS
Q.1 (c)
Given: Q.4 (a)
Average time between arrivals min Given λ = 4 / hour μ= 4/ hour
= 10 MIN The sum of probability
Mean arrival rate (Number of n −10
arrivals per unit time) λ = 6 per hour ∑ P=

n =0
n n= 10
Average time between call = 3 min
P0 + P1 + P2 ..... + P10 =
1
Mean service rate
60 In the term of traffic intensity
=
µ = 20 per hour λ 4
3 ρ= ⇒ ρ= = 1
SO, the probability that an arrival µ 4
does not have to wait before SO,
service is, Pb + ρP0 + ρ2 + ...ρ10 P0 =1
λ 6 P1 =
ρP0 , P2 =
ρ2
P0 =1 − =1 − =1 − 0.3 =0.7
µ 20 P0 and so on
P0 ( 1 + 1 + 1 +....)= 1
Q.2 (b)
Total supply 50 +40+60 = 150 units P0 × 1
Total demand=20+30+10+50 1
P0 =
= 110 units 11
In this question, the total availability Hence, the probability that a person
(supply) may not be equal to the who comes in leaves without
joining the queue is,
m n
total demand, i.e., ∑ ai ≠ ∑ b j
i −1 j−1 P11 =ρ11. × P0
Such problems are called unbalanced 1 1
transportation problems. P11 =ρ11 × =
11 11
Here total availability is more than
the demand. So we add a dummy Q.5 (b)
destination to take up the excess Given λ= 8 per hour
capacity and the costs of shipping to μ= 6 min per customer
this destination are set equal to 60
zero. So, a dummy destination of = customer / hours
5
capacity 40 unit is needed.
= 10 customer / hour
We know, for exponentially
Q.3(a)
distributed service time.
Given:
Average number of customers in the
Mean arrival rate λ =3 per day
queue.
Mean service rate μ= 6 per day
λ λ 8 8
We know that, for first come first Lq = × = × =3.2
serve queue. μ (μ-λ) 10 (10-8)
Mean waiting time of an arrival,
λ 3 1 Q.6 (c)
=t = = day The most common distribution
µ(µ − λ ) 6(6 − 3) 6
found in queuing problems is
Poisson distribution. This is used in Q.10 (c)
single-channel queuing problems for
random arrivals where the service Q.11 (a)
time is exponentially distributed.
Probability of n arrivals in time t Q.12 (1.67)
(xt) n .e −λT λ (arrival rate) = 5 jobs/minute
P= μ(service rate) = 8 jobs/minute
nl
where = 0,1,2... λ 5 5
Ls= = = = 1.67
So, Probability density function of µ−λ 8−5 3
inter arrival time (time interval Q.13 (a)
between two consecutive arrivals.
f(t)=λ.e-λt Q.14 (2.5)
λ = 12hr-1
μ = 24 hr-1
Q.7 (b)
λ 12
Little’s law is a relationship between
= Ws = × 60
average waiting time and average µ ( u − λ ) 24 ×12
length of the queue in a queuing = 2.5 seconds
system. The little law establish a
relation between Queue length (Lq) ,
Queue waiting time (Wq) and the Q.15 (d)
Mean arrival rate λ.
So, Lq = λWq Q.16: given options are incorrect
Q.8 (d) Q.17 (0.383)

1
Given: λ = 5 per hour, µ= × 60 per Given, arrival rate, λ = 30/hour
10
hour = 6 per hour
1
Average waiting time of an arrival λ= / min .
λ 5 2
=Wq = P = prob. = 1 − e − λt
μ ( μ − λ ) 6 ( 6 − 5)
1
− 1
5
= hours = 50 min P (1) =
1− e 2
=
0.393
6 1
− 3
P ( 3) =
1 − e − λt =−
1 e 2
Q.9 (c)
1 − e −1.5 =
= 0.7768
Average waiting time of a customer
(in a queue) is given by P (1 ≤ T ≤ 3 min
= ) 0.7768 − 0.393
= 0.383
λ
E(w) =
μ(μ − λ)
Where λ = 50
customer per hour or 0.834
customer /min
μ = 1 per min
0.834
Therefore E ( w ) =
1× (1 − 0.834)
= 5 min
ASSIGNMENT QUESTIONS
Q.1 Which one of the following Q.6 Which one of the following is not a
forecasting techniques is not suited technique of Long Range Forecasting?
for making forecasts for planning a) Market Research & Market Surve
production schedules in the short b) Delphi
range? c) Collective Opinion
a) Moving average d) Correlation and Regression
b) Exponential moving average
c) Regression analysis Q.7 Which of the following is the
d) Delphi measure of forecast error?
a) Mean absolute deviation
Q.2 Which one of the following methods b) Trend value
can be used for forecasting the sales c) Moving average
potential of a new product? d) Price fluctuation
a) Time series analysis
b) Jury of Executive Opinion method Q.8 For sales forecasting, pooling of
c) Sales Force Composite method expert opinions made use of in
d) Direct Survey method a) Statistical correlation
b) Delphi technique
Q.3 Which one of the following methods c) Moving average method
can be used for forecasting when a d) Exponential smoothing
demand pattern is consistently
increasing or decreasing? Q.9 Which of the following is not the
a) Regression analysis characteristic of exponential
b) Moving average smoothing? method of forecasting?
c) Variance analysis a) This represents a weighted
d) Weighted moving average average of the past observations.
b) All observations are assigned
Q.4 Which one of the following equal weightage.
forecasting techniques is most c) If smoothening coefficient is 1
suitable for making long range then the latest forecast would be
forecasts? equal to previous
a) Time series analysis period actual demand.
b) Regression analysis d) The technique is not simple as
c) Exponential smoothing compared to moving average
d) Market surveys method.
Q.5 Which one of the following is not a Q.10 The interchange ability can be
purpose of Long-term forecasting? achieved by
a) To plan for the new unit of a) standardization
production b) better process planning
b) To plan the long-term financial c) bonus plan
requirement d) better product planning
c) To make the proper arrangement
for training the personnel Q.11 Standardization of products is done
d) To decide the purchase programme to
a) eliminate unnecessary varieties Q.17 In the Kendall's notation for
in design representing queuing models the first
b) simplify manufacturing varieties position represents
in design a) Probability law for the arrival
c) make interchangeable manufacture b) Probability law for the service
possible c) Number of channels
d) reduce material cost d) Capacity of the system
Q.12 The standard time of an operation Q.18 In a single server queuing system
while conducting a time study is with arrival rate of λ and mean
a) mean observed time + allowances service time of ‘μ’ the expected
b) normal time - allowances number of customers in the system
c) mean observed time x rating 
is What is the expected waiting
factor +allowances 
d) normal time x rating factor + time per customer in the system?
allowances 2 
a) b)
 
Q.13 In time study, the rating factor is
applied to determine c)
1
d)
   
a) standard time of a job  
b) merit rating of the worker
c) fixation of incentive rate Q.19 Flexible manufacturing systems are
d) normal time of job generally applied in
a) high variety and low volume
Q.14 Work study is mainly aimed at production
a) determining the most efficient b) medium volume and medium
method of performing a job variety production
b) establishing the minimum time c) low v3.riety and low volume
of completion of job production
c) developing the standard method d) high variety and high volume
and standard time of a job production
d) economizing the motions Q.20 Vehicle manufacturing assembly
involved on the part of worker line is an example of
while performing a job a) product layout b) process layout
c) manual layout d) fixed layout
Q.15 Which one of the following is not a
technique of PMTS? Q.21 Transfer lines are mostly used
a) Synthetic data a) Aero industries
b) Stopwatch time study b) Ship building
c) Work-factor c) Automobile industries
d) MTM d) Machine tool manufacturing
Q.16 In performing a task, motion economy Q.22 Which one of the following types of
refers to the manner in which layout is used for the manufacture of
a) human energy can be conserved huge Aircrafts?
b) electric energy can be conserved a) Product layout
c) machine movements can be b) Process layout
reduced c) Fixed position layout
d) material movements can be reduced d) Combination layout
Q.23 Which one of the following is
military type organization? Q.29 The solution in a transportation
a) Line organization model (of dimension m x n) is said
b) Functional organization to be degenerate if it has
c) Line and staff organization a) exactly (m + n - 1) allocations
d) Line and functional organization b) fewer than (m + n- 1)
c) more than (m + n- 1) allocations
Q.24 Which type of layout is preferred in d) (m x n) allocations
order to avoid excessive
multiplication of facilities? Q.30 In a transportation problem, the
a) Process layout materials are transported from 3
b) Product layout plants to 5 warehouses. The basic
c) Fixed position layout feasible solution must contain
d) Cellular manufacturing exactly, which one of the
following allocated cells?
Q.25 In-process inventory will be a) 3 b) 5
maximum case of a plant with c) 7 d) 8
a) Process layout
b) Product layout Q.31 Simplex method of solving linear
c) Mixed process and Product layout programming problem uses
d) Machine cell layout a) all the points in the feasible
region
Q.26 The number of pieces inspected per b) only the corner points of the
lot is generally greatest in the feasible region
following sampling plan c) intermediate points within the
a) Single b) Double infeasible region
c) Multiple d) None of these d) only the interior points in the
feasible region
Q.27 Which one of the following is not the
characteristic of acceptance sampling? Q.32 In linear programming a basic
a) This is widely suitable in mass feasible solution
production a) satisfies constraints only
b) It causes less fatigue to inspectors b) satisfies constraints and non-
c) This is much economical negativity restrictions
d) It gives definite assurance for c) satisfies non-negativity
the conformation of the d) optimizes the objective function
specifications for all the pieces
Q.33 A tie for leaving variables in simplex
Q.28 Which one of the following is true in
procedure implies
case of simplex method of linear
a) Optimality b) Cycling
programming?
c) No solution d) Degeneracy
a) The constants of constraints
equation may be positive or
Q.34 Two groups of costs in inventory
negative
control are
b) Inequalities are not converted
a) carrying costs and ordering costs
into equations
b) relevant costs and ordering costs
c) It cannot be used for two-
c) carrying costs and total costs
variable problems
d) relevant costs and total costs
d) The simplex algorithm is an
iterative procedure
Q.35 In basic economic order quantity 1. Very strict control
model for the optimal order 2. Frequent review of their
quantity, consumption
a) holding cost is more than 3. Safety stock kept
ordering cost Which of the above statements
b) holding cost is less than ordering is/are correct?
cost a) 1 only b) 1 and 2 only
c) holding cost is equal to ordering c) 2 only d) 1, 2 and 3
cost
d) holding cost is two times the Q.42 The term value in value engineering
ordering cost refers to
a) total cost
Q.36 The inventory carrying cost includes b) utility of the product
a) expenditure incurred for c) selling price
payment of bills d) depreciated value
b) placing an order
c) receiving and inspecting Q.43 In value engineering important
d) obsolescence and depreciation consideration is given to
a) cost reduction
Q.37 In the basic EOQ model, if demand is b) profit maximization
Rs.60 per month, ordering cost is Rs. c) function concept
12 per order, holding cost is Rs. 10 d) customer satisfaction
per unit per month, what is the
EOQ? Q.44 Aluminum tie pin and gold tie pin,
a) 12 b) 144 both serve the purpose of keeping
c) 24 d) 28 the tie in position, but the gold pin
has significance due to:
Q.38 ABC analysis deals with a) Exchange value b) Use value
a) analysis of process chart c) Esteem value d) Cost value
b) flow of materials
c) ordering schedule of job Q.45 Consider the following basic steps
d) controlling inventory cost involved in value analysis:
1. Create 2. Blast
Q.39 In ABC analysis of inventory control 3. Refine
'A' items have The correct sequence of these steps is
a) very high cost a) 1, 2, 3 b) 3, 1, 2
b) intermediate cost c) 1, 3, 2 d) 2, 1, 3
c) low cost
d) very low cost Q.46 In CPM network critical path
denotes the
Q.40 In ABC analysis the following is true a) path where maximum resources
for 'C' items: are used
a) Low consumption value b) path where minimum resources
b) Low control are used
c) Bulk ordering c) path where delay of one activity
d) Accurate forecasting for material prolongs the duration of
planning completion of project
Q.41 The following is the general policy d) path that gets monitored
for A class items in ABC analysis: automatically
Q.47 In PERT, the distribution of activity a) MPS (Master Production
times is assumed to be Schedule)
a) Normal b) Gamma b) Bill of materials
c) Beta d) Exponential c) Cost of materials
d) Inventory status
Q.48 The critical path of a network is the
path that Q.55 Under the Emerson Efficiency Plan,
a) Takes the shortest time the worker gets a normal wage at
b) Takes the longest time the efficiency of
c) Has the minimum variance a) 50% b) 66.66%
d) Has the maximum variance c) 75% d) 85%
Q.49 The variance of the completion time Q.56 An equipment costs P and its service
for a project is the sum of variance of in number of years N. If the annual
a) All activity times P-L .depreciation charge is N, then L
b) Non-critical activity times is the
c) Critical activity times a) maintenance cost
d) Activity times of first and last b) salvage value
activities of the project c) production cost
Q.50 Bin cards are used for d) ideal cost
a) machine loading
b) stores Q.57 In an assembly line the cycle time is
c) accounts equal to the
d) inventory control a) maximum time of all station times
b) average time of all station times
Q.51 Value Engineering aims at finding c) sum of all station times
out d) time for total work content
a) depreciation value of a product
b) resale value of a product Q.58 In manufacturing management, the
c) major functions of the item and term “Dispatching" is used to
accomplishing the same at the describe
least cost without change in a) dispatch of sales order
quality b) dispatch of factory mail
d) break-even point when machine c) dispatch of finished product to
requires change the user
d) dispatch of work orders through
Q.52 MRP-11 means shop floor
a) material requirement planning
b) manufacturing resource planning Q.59 A production line is said to be
c) man requirement planning balanced when
d) money requirement planning a) There are equal number of
Q.53 Which one of the following is not a machines a teach work station
function of production control? b) There are equal number of
a) Forecasting b) Routing operators a teach work station
c) Scheduling d) Dispatching c) The waiting time for service at
each station is the same
Q.54 Which of the following is not an d) The operation time at each
input to the MRP system? station is the same
Q.60 In production, planning and control, flexibility in their design
the document which authorizes the d) low volume items with minimum
start of an operation on the shop flexibility in their design
floor is the:
a) Dispatch order b) Route plan Q.67 The given figure shows the details of
c) Loading chart d) Schedule stock level in the periodic review
inventory control system.
Q.61 Sequencing is a subset of
a) routing b) scheduling
c) expediting d) none of the above
Q.62 PERT stands tor
a) project evaluation and review
technique
b) process evaluation and review
technique
c) programme evaluation and
review technique
d) planning estimatimation and
review technique Match the List-1 (Characteristics)
withList-11 (Line) and select the
Q.63 Which one of the following correct answer using the code given
statements is not correct tor the below the lists:
TQC? List-I List-II
a) It is about the product quality & A. Lead time 1 . DE
quality of all business processes. B. Ordered quantity 2. FH
b) It is restricted to product quality. C. Safety stock 3. CG
c) It utilizes quality circles. D. Review period 4. R1A
d) It utilized zero defect programmes. 5. AD
Codes:
Q.64 Which one of the following is not the A B C D
purpose of method study? a) 3 4 2 5
a) Save time b) 5 1 4 3
b) Improve manpower planning c) 3 1 4 5
c) Improve product design d) 5 4 2 3
d) Reduce worker fatigue
Q.65 What is the act of authorizing the Q.68 A machine tool manufacturing
work-man actually to perform the industry requires to purchase 2000
work according to the method helical gears/year from a gear
outlined using prescribed tools at a manufacturing industry. The
predetermined standard & schedule? ordering cost is Rs. 100/- per order
a) Dispatching b) Loading and the carrying cost per unit per
c) Planning d) Scheduling year is Rs. 10/-. The economic order
quantity is
Q.66 Mass production is characterized by a) 2000 b) 1000
a) low volume items with maximum c) 200 d) 100
flexibility in their design
b) high volume items with maximum Q.69 If item cost, inventory carrying cost,
flexibility in their design ordering cost and demand get
c) high volume items with minimum doubled, what is the ratio of
modified economic order quantity distribution. Check uptime by the
(EOQ) and the present EOQ? doctor follows an exponential
a) 2 b) 2 distribution. If on an average, 9
c) 4 d) 8 patients/hr arrive at the clinic and
the doctor takes on average 5 minutes
Q.70 If orders are placed once a month to to check a patient, the number of
meet an annual demand of 6,000 patients in the queue will be
units, then the average inventory a) 1 b) 1.25
would be c) 2.25 d) 3.25
a) 200 b) 250
c) 300 d) 500 Q.76 For a M/M/1:oo/FCFS queue, the
mean arrival rate is equal to 10 per
Q.71 The expected demand of a product hour and the mean service rate is 15
is 150 per day. The lead time is 10 per hour. The expected queue length
days. An order is placed when the is:
inventory falls to 4000units. The a) 1.33 b) 1.53
safety stock is c) 2.75 d) 3.20
a) 1500 units b) 2500 units
c) 3000 units d) 4000 units Q.77 The pessimistic, most likely and
optimistic times for an activity are 5
Q.72 A dealer sells a radio set at Rs. 900 days, 3 days and 1 day respectively.
and makes 80% profit on his Assuming Beta distribution, the
investment. If he expected duration of the activity is
can sell it at Rs. 200 more, his profit a) 3 days b) 3.5 days
as percentage of investment will be: c) 4 days d) 5 days
a) 160 b) 180
c) 100 d) 120 Q.78 In the network shown below the
critical path is along:
Q.73 A purchasing assistant has
calculated the annual carrying cost
for an item to be Rs. 4/annum. EOQ
worked out is 500 units. What is the
annual ordering cost for the item?
a) Rs. 125 b) Rs. 500
c) Rs. 1000 d) Rs. 2000
a) 1-2-3-4-8-9
Q.74 The probability distribution for the
b) 1-2-3-5-6-7-8-9
sale of a product is as follows:
c) 1-2-3-4-7-8-9
Sale quantity Probability
d) 1-2-5-6-7-8-9
1 0.3
2 0.4 Q.79 In a PERT network, expected project
3 0.3 duration is found to be 36 days from
On the sale of an item the profit is the start of the project. The variance
Rs. 500. The expected profit is is four days. The probability that the
a) 1000 b) 500 project will be completed in 36 days
c) 250 d) 200 is:
a) zero b) 34%
Q.75 Patients arrive at a doctor's clinic c) 50% d) 84%
according to the Poisson
Q.80 Time estimates of an activity in a Q.84 For the network shown in the given
PERT network are: Optimistic time figure, the earliest expected
t0 = 9 days; pessimistic time tP= 21 completion time of the project is: 0.36
days and most likely time tm= 15
days. The approximates probability
of completion of this activity in 13
days is:
a) 16% b) 34%
c) 50% d) 84%
a) 26 days b) 27 days
Q.81 If the earliest starting time for an
c) 30 days d) Indeterminable
activity is8 weeks, the latest finish
time is 37 weeks· and the duration Q.85 The fixed costs for a year is Rs. 8
time of the activity is 11 weeks, then lakes, variable cost per unit is Rs.
the total float is equal to: 40/- and the selling price of each
a) 18 weeks b) 14 weeks unit is Rs. 200/-. If the annual
c) 56 weeks d) 40 weeks estimated sales is Rs. 20,00,000/-,
then the break-even volume is
Q.82 Weekly production requirements of
a) 2000 b) 3000
a product are 1000 items. The cycle
c) 3333 d) 5000
time of producing one product on a
machine is10 minutes. The factory Q.86) The lead time consumption is 500
works on two shift basis in which units. The annual consumption is
total available time is16 hours. Out 8000 units. The company has a
of the available time about 25% is policy of EOO ordering and
expected to be wasted on maintenance of 200 units as safety
breakdowns, material unavailability stock. The reorder point (ROP) is
and quality related problems. The a) 500 units b) 700 units
factory works for5 days in a week. c) 200 units d) None of these
How many machines are required to
fulfill the production requirements? Q.87 A company sells 14,000 units of its
a) 2 b) 3 product. It has a variable cost of Rs.
c) 4 d) 6 15 per unit. Fixed cost is Rs. 47,000
& total required profit is Rs. 23,000.
Q.83 Consider the network. Activity times Per unit product price (in Rs.) Will be
are given in number of day. The a) 60 b) 40
earliest expected occurrence time c) 30 d) 20
(TE) for event50 is
Q.88 Match List-1 (Cost revenue
parameter) with List-II (Break-even
chart's parameter) &select the
correct answer using the code given
below the lists:
List-1 List-2
A. Facility cost
B. Total cost
C. Sales revenue
a) 22 b) 23
c) 24 d) 25 D. Production quantity
Codes: Q.93 In a 'C' chart the value of C' is 36.
A B C D The upper control limit of the chart
a) 3 2 5 1 is equal to
b) 1 4 5 3 a) 114 b) 126
c) 3 2 4 1 c) 90 d) 54
d) 1 2 4 3
Q.94 Match List-1 (Thermbling symbol)
Q.89 Consider the following statements in with Ust-11(Description) and select
respect of break-even point: the correct answer using the code
1. Revenue is equal to total cost. given below the lists:
2. Revenue is equal to variable cost.
3. Profit/Loss is equal to zero.
Which of these statements is/are
correct?
a) 1, 2 and 3 b) 1 and 2 only
c) 2 and 3 only d) 1 and 3 only
Q.90 If a company's total sales is Rs.

50,000 and (PN) ratio is 50% and
margin of safety percentage is 40%,
then break-even point sale is List-II
a) 20,000 b) 25,000 1. Prolonged grasp of the object
c) 30,000 d) 40,000 2. Locate an article
3. Releasing the object at the
Q.91 Following table shows the data desired place
about a set of single operation jobs 4. Taking hold of the object
to be machined in a milling machine. 5. Putting parts together
Job 1 2 3 4 5 Codes:
Processing 6 17 5 7 11 A B C D
time a) 3 1 4 2
The optimum sequence that b) 2 4 5 3
minimizes the mean flow time is c) 3 4 1 2
a) 1-2-3-4-5 b) 5-4-3-2-1 d) 1 5 4 3
c) 3-1-4-5-2 d) 2-5-4-1-3 Q.95 Consider the following statements:
1. To prepare estimates of labor
Q.92 There are two machines M1 and M2 and costs.
which process jobs A, B, C, D, E and 2. To prepare realistic work
F. The processing sequence for these schedule.
jobs is M1followed by M2. Consider 3. To establish better methods of
the following detain this regard: work.
Process time required in minutes 4. To compare times required for
Jobs A B C D E F alternative methods.
M1 4 7 3 12 11 9 Which of these are the objectives of
M2 11 7 10 8 10 13 work measurement?
The processing sequence of jobs a) 1 only b) 2 and 3
that would minimize the make span c) 1 and 2 d) 2, 3 and 4
is:
a)C-A-B-F-E-0 b) C-A-B-0-E-F Q.96 The following data is available from
c) C-A-0-B-F-E d) E-F-0-B-A-C time study on a job Observed time =
0.75 min., rating = 110%, relaxation 3. Disposal of scrap
allowance = 3%, delay allowance = Which of these factors will provide
2%. All allowances expressed in % economy in materials management?
of normal time. What is the a) 1 and 3 b) 2 and 3
approximate standard time for this c) 1 and 2 d) 3 only
job?
a) 0.95 minutes b) 0.625 minutes Q.100 Which of the following can be
c) 0.825 minutes d) 0.74 minutes considered to the advantages of
product layout?
Q.97 Time study of an operator with a 1. Reduced material handling
performance rating of 120% yields a 2. Greater flexibility
time of 2 minutes. If the allowances 3. Lower capital investment
of 10% of the total available time 4. Better utilization of men and
are to be given, then what is the machines
standard time of operation? a) 1 and 3 b) 2 and 3
a) 2.00 minutes b) 2.40 minutes c) 1 and 4 d) 2 and 4
c) 2.64 minutes d) 2.67 minutes
Q.98 Match List-I with List-II and select

the correct answer using the code
given below the lists:
List-I
A. Loading
B. Dispatching
C. Follow-up
D. Scheduling
List-II
1. Reviewing the status of orders as
they progress through the
system.
2. Authorizing actual performance
of the
3. Matching the capacity
requirements of orders received
(or expected) to the
existing capacity.
4. Process of fitting a production
order into the available time of
machines.
Codes:
A B C D
a) 4 1 2 3
b) 3 1 2 4
c) 4 2 1 3
d) 3 2 1 4
Q.99 Consider the following statements:

1. Volume of purchases
2. Discounts offered
ANSWER KEY:
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(d) (d) (a) (d) (c) (d) (a) (b) (b) (a) (c) (c) (d) (c)
15 16 17 18 19 20 21 22 23 24 25 26 27 28
(a) (a) (a) (c) (b) (a) (c) (c) (a) (a) (a) (a) (d) (d)
29 30 31 32 33 34 35 36 37 38 39 40 41 42
(b) (c) (b) (b) (d) (a) (c) (c) (a) (d) (a) (b) (d) (b)
43 44 45 46 47 48 49 50 51 52 53 54 55 56
(a) (c) (d) (b) (c) (c) (c) (b) (c) (b) (a) (c) (b) (b)
57 58 59 60 61 62 63 64 65 66 67 68 69 70
(a) (d) (d) (a) (b) (c) (a) (c) (a) (c) (b) (c) (a) (d)
71 72 73 74 75 76 77 78 79 80 81 82 83 84
(b) (d) (c) (a) (c) (a) (a) (b) (c) (a) (a) (b) (d) (c)
85 86 87 88 89 90 91 92 93 94 95 96 97 98
(d) (b) (d) (c) (d) (c) (d) (a) (d) (b) (d) (a) (c) (d)
99 100
(c) (c) `
EXPLANATIONS
Q.1 (d) easily and assembling in done
somewhere else.
Q.2 (d)
Opinion survey method is relatively Q.12 (c)
simple and practical method for
forecasting demands and especially Q.13 (d)
for new products. A rating factor is a factor by which
the observed time is multiplied in
Q.3 (a) order.
Linear Regression Analysis: This To adjust for differences in
method is very useful forecasting operator’s performance.
techniques if the past data appear Normal time = observed time
to fall about a straight line. The performance rating factor.
general equation for the regression
line is given by: y = a + bx, where ‘a Q.14 (c)
and b are constants. Work study investigates work done
in an organization and it aims at
Q.4 (d) finding the best and most efficient
Time series analysis (Regression way of using available resources.
Analysis, Exponential smoothing)
are quantitative analysis of Q.15 (a)
forecasting and suitable for short Techniques of PMTS are:
range while market survey is a long 1. Method Time Measurement (MTM)
range forecasting. 2. Work Factor System (WFS)
3. Basic Motion Time Study (BMTS)
Q.5 (c)
Q.16 (a)
Q.6 (d) Principle of motion economy: A
Correlation and Regression method worker while performing a task
is used for short and medium range makes use of number of motions or
forecasting. movements.The careful examination
of these motions may reveal that
Q.7 (a) some of these motions
 are unnecessary and can be
Q.8 (b) eliminated
 can be simplified by effective
Q.9 (b) changes in the work place layout
 can be performed more
Q.10 (a) efficiently by other members of
the body.
Q.11 (c)
Standardization is done to make Q.17 (a)
manufacturing simplicity ie., the
subassemblies can be made Q.18 (c)
somewhere, where it can be made Waiting time in system.
 1 1 Q.24 (a)
  
       
Q.25 (a)
Q.19 (b)
Q.26 (a)
The number of pieces inspected per
lot is generally more in single
sampling than double sampling.
Q.27 (b)
Q.28 (d)
Simplex method of linear programming
is an iterative procedure.
Q.29 (b)
Job shop production is used for In a Transportation Problem, if the
mass production i.e., high volume number of non-negative independent
low variety, process less out is used allocations is less than m + n - 1
for low volume high variety of there exists a degeneracy. where
product while flexible manufacturing m = no. of rows
system is used for mid volume mid n = no. of columns
variety product.
Q.30 (c)
Q.20 (a) Degeneracy arises when number of
allocation are less than 3÷5 -1 = 7
Q.21 (c)
Q.31 (b)
Q.22 (c)
Process layout: It is characterized Q.32 (b)
by keeping similar machines or
similar operation at one location. Q.33 (d)
Process layout: Implies that
various operations on raw material Q.34 (a)
are performed in a sequence and the Two costs are involved in inventory
machine are placed along the control viz. carrying cost & ordering
product flow line, i.e. , machines are cost.
arranged in the sequence in which Q.35 (c)
raw material will be operated upon. For economic order quantity
Fixed position layout: In this case Holding cost = ordering cost
men and equipment are moved to
the material, which remain at one Q.36 (c)
place and product in completed at
that place where material lies. It is Q.37 (a)
used in ship building, aircraft 2RC0
EOQ 
manufactured big pressure vessel CC
fabrication etc.
2   60 12  12
  12
Q.23 (a) 10 12 
Q.38 (d)  Define the different function
ABC analysis is technique of (b) Create:
inventory control.  Create different alternatives
 Critically evaluate the
Q.39 (a) alternative
In ABC analysis, item A’ are high (c) Refine:
usage, valued item and extra care is  Develop the best alternatives
required for these items.  Implement the alternative
Q.40 (b) Q.46 (b)
Q.41 (d) Q.47 (c)

Critical path is the path having zero
Q.42 (b) delay and if any delay occurs in the
The term value refers to the ratio of activity of critical path whole cycle
utility of product and cost. get affected.
utility
Value = Q.48 (c)
cost
In PERT the activity times follow
Q.43 (a) Beta distribution.
Value engineering is the application
of the concept of value analysis at Q.49 (c)
the design or pre-manufacture stage
of the component parts with a view Q.50 (b)
to cut down the unnecessary cost, Bin cards are used in stores to
without impairing the function or identify various inventory.
utility of the product. Q.51 (c)
Value engineering is a critically
Q.44 (c) investigation & analysis of different
Esteem Value: The properties, aspects of material, design and
features or attractiveness of an object production of each & every
makes its ownership desirable. component of product.
Use Value: The properties or Value engineering targeted to
qualities which accomplish a use, improve the value of a product and
work or service. it can be improved by increasing the
Cost Value: The sum of labour utility of product by maintaining
material and other cost required to the same cost or by minting the
produce the object (also called as same utility by decreasing the cost.
Economic value).
Exchange Value: The properties or Q.52 (b)
qualities of an object that make it
possible to exchange it for something Q.53 (a)
else that one wants. Routing, scheduling and dispatching
are the function of production
Q.45 (d) control.
Value analysis procedure:
(a) Blast: Q.54 (c)
 Identify the product
 Collect the relevant information Q.55 (b)
Q.56 (b) RC0
EOQ 
CC
Q.57 (a)
Q.58 (d) Q.69 (a)

Dispatching basically is the physical
delivery of orders and instructions Q.70 (d)
to all the persons who are involved 6000
Qavg   500
in actual projection and other 12
supporting activities.
Q.71 (b)
Q.59 (d)
Q.60 (a)
Q.61 (b)
Q.62 (c)
Q.63 (a)
Q.64 (c)
Q.72 (d)
Q.65 (a) 900  100 
C.P.   500
100  80 
Q.66 (c) S.P. if he self at 200 more = 900 +
200 = 1100
Q.67 (b) 100  500
Proft (in %)  100  120%
500
Q.73 (c)
Q.74 (a)
Expected profit
= 500(0.3 x 1 + 0.4 x 2 + 0.3 x 3)
= 500 (0.3 + 0.8 + 0.9) = 1000
Q.75 (c)
Q.68 (c) λ= 9 Patients / hr
2RC0 μ= 12 Patients/hr
EOQ   9
CC     0.75
 12
2  2000 100
= length of queue
100
p2
= 200 units Ln =
p 1
2RC0
EOQ   0.75
2
CC Ln 
1  0.75
Ln =2.25
Q.76 (a) X  X 36  36
λ = 10 Per / hr Z  0
 2
μ = 15 Par/hr p(O) = 0.5
10 2 the probability that the project
 
15 3 will be completed in 36 days is 50%
p2
length of queue Ln = Q.80 (a)
p 1
t o  4t m  t p
2 4
2
t expected 
  6
3
    9  1.33 9   4 15  12
2 1   15
1 6
3 3
S.D. 
 t p  t o   21  9  2
Q.77 (a) 6 6
tp= 5 days X  X 13  15
tm = 3 days Z   1
 2
to = 1 days p(-1) = 0.1586 ≃0.16
t p  4t m  t 0
Expected time = Q.81 (a)
6
5  12  1 Total float (T.F.) = L1 – E1 - TI
 =3 days = 37 – 8 -11= 18 WEEKS
6
Q.82 (b)
Q.78 (b) Hours utilized per day = 16 x(1 —
0.25) =16 xO.75 = 12 hours hours
utilized in a week = 12 x5 = 60 hours
Number of items produced on a
60  60
machine   360
10
therefore number of machines
1000
required   277  3
360
Activities Duration EST LST LET Total Flood
1—2 3 0 0 3 0 Q.83 (d)
2—3 4 3 3 7 0
3—4 5 7 10 15 3
2—5 2 3 5 7 2
4—8 5 12 15 20 3
5—6 3 7 7 10 0
6—7 4 10 10 14 0
7—8 6 14 14 20 0
8—9 4 20 20 24 0
4—7 0 12 14 14 2
3—5 0 7 7 7 0
Therefore critical path
1—2—3—5—6—7—8—9
and total project duration
= 3 + 4 + 3 + 4 + 6 + 4 = 24
Critical path is given by 1O-20-30-
Q.79 (c) 40-50
Standard deviation (a): The earliest expected occurrence
Variance  4  2 time (TE) for the event is 25.
Q.84 (c)
Q.90 (c)
Sales  BEPsales
MOS% 
Sales
50000  BEPSales
 0.4 
50000
 BEPSales  30000
Q.91 (d)
Q.92 (a)
Examine the column for processing
time on machine M1 &M2 & find the
Q.85 (d) smallest value [mm (M1, M2)j and
Fixed cost allocate on extreme side if M2 is
BSP  smallest otherwise on extreme left
Selling price  Variance ocst
side in sequence
800000
  5000units
200  40
Q.86 (b)
ROP=Safety cost + lead time consumption Q.93 (d)
= 200 + 500 = 700 units UCL  36  3 36  36  18  54
Q.87 (d) Q.94 (b)
Total number of product sold by a
company = 14000 Q.95 (d)
Variable cost per unit = Rs. 15
Fixed cost = Rs. 47,000 Q.96 (a)
Total profit = As. 23 000 Observed time = 0.75 mm
47000 47 Rating = 110%
Fixed cost per unit   Total allowance = 3 + 2 = 5%
14000 14
Normal time =0.75×1.10=0.825 min
23000 23
profit per unit   0.825  5
14000 14 Standard time  0.825 
100
Unit product price = Fixed cost per
= 0.866 min
unit + variable cost per unit + profit
per unit Q.97 (c)
47 23 70 Performance rating = 120%
 15    15   20
14 14 14 Observed time = 2 mm
Allowance = 10%
Q.88 (c) Normal time=2 1.2 = 2.4 mm
2.5 10
Observed time  2.4 
100
= 2.64 minutes
Q.98 (d)
Q.99 (c)
Q.100 (c)
Q.89 (d)

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INDUSTRIAL

3. PROJECT MANAGEMENT (CPM & PERT)

8. LINEAR PROGRAMMING PROBLEM

10. TRANSPORTATION PROBLEM

11. GATE QUESTIONS 30

12. ASSIGNMENT QUESTIONS 74

1.1 DEFINITION Application:

1.2 TYPE OF FORECASTING Forecasting can also be classified into two

1.2.3 SHORT RANGE FORECASTING 1.3.2.1TYPES OF QUANTITATIVE

average for the months of December

requires maintaining the data for all the n

Dt−1 =Last period actual demands TS  t I

1.4 FORECASTING ERROR

1.4.1 MEAN ABSOLUTE DEVIATION

This is calculated as the average of absolute

1.4.2 MEAN SUM OF SQUARE ERROR

The average of square of all errors in the

2.1 INTRODUCTION and how much to order and how much to

2.1.1CLASSIFICATION OF INVENTORIES 2.2.1 INVENTORY CONTROL TERMINOLOGY

1) Demand: It is the number of items

2.1.2 REASONS FOR KEEPING

2.3.4 PRODUCTION OR PURCHASE COST

The value of an item is its purchasing or

2.4 ECONOMIC ORDER QUANTITY

It is to be noted that ordering cost and

This model is applicable when inventory

Let D = Annual demand (Units per year)

Example: Find the optimal order quantity

3.1 INTRODUCTION 4) Dummy Activity: An activity that

ii) Free float: It represents the time by

iii) Independent float: It represents

10) Critical Path: The sequence or chain of

The entry in the tabular form starts with

4.1 INTRODUCTION ii) The break – down of a single machine in

4.1.1 TYPE OF PLANT LAYOUT Process layout is also known as functional

i) Greater flexibility of production. Change

2) Batch Production: Batch production is

4.2 PRODUCTION SYSTEM

The production system varies from factory

5.1 INTRODUCTION 5.3 IMPORTANT PARAMETERS IN LINE

1) Work station: A work station is a Work stations I II III IV V VI

6) Balance delay: The percentage of total

7) Line efficiency: It is expressed as the

6.1 INTRODUCTION Solution:

i) Last Come First Serve (LCFS) Rule:

Solution: By examining the columns, we

Solution: Here min Ai = 2 , Max Bi = 8, Thus the minimum elapsed is 77minutes.

Examine the columns Gi and Hi we find

7.1 INTRODUCTION 7.1.1.2 QUEUE CHARACTERISTICS

7.1.1.1 ARRIVAL CHARACTERISTICS /

4) Number of waiting lines that are 2) Reneging of Queue: Reneging pertains

Kendall proposed a set of notations for 7) Probability of system being occupied

8.1 INTRODUCTION obviously are not the best solutions.

Solving the equation to get- corner points

9.1 INTRODUCTION 9.3 ALGORITHM TO SOLVE ASSIGNMENT

 Select row (or Column), which has least

Transportation problem is a special variety

10.2 HOW TO SOLVE THE

A typical TP is represented in standard

To solve the TP, an initial feasible solution

The initial solution is further tested for

4. PERT AND CPM

5. PROBABILITY AND STATISTICS

6. PRODUCTS AND PROCESS, PLANNING AND CONTROL