Industrial Engineering Miscellaneous
- The sale of cycles in a shop in four consecutive months are given as 70, 68, 82, 95. Exponentially smoothing average method with a smoothing factor of 0.4 is used in forecasting. The expected number of sales in the next month is
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Ft+1 = Dt + α(1 – α) Dt–1 + α(1 – α) ² Dt–2
Ft+1 = 0.4 (95) + 0.4 (1 – 0.4)² + α(1 – α)³ Dt–3 + (0.4) (1 – 0.4)² × 68 + (0.4) (1 – 0.4)³ × 70
Ft–1 = 73.52 unitsCorrect Option: C
Ft+1 = Dt + α(1 – α) Dt–1 + α(1 – α) ² Dt–2
Ft+1 = 0.4 (95) + 0.4 (1 – 0.4)² + α(1 – α)³ Dt–3 + (0.4) (1 – 0.4)² × 68 + (0.4) (1 – 0.4)³ × 70
Ft–1 = 73.52 units
- In inventory planning, extra inventory is unnecessarily carried to the end of the planning period when using one of the following lot size decision policies:
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NA
Correct Option: B
NA
- A company has an annual demand of 1000 units, ordering cost of Rs. 100/ order and carrying cost of Rs. 100/unit-year. If the stockout costs are estimated to be nearly Rs. 400 each time the company runs out-of-stock, the safety stock justified by the carrying cost will be
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D = 1000 Units
CO = 100 Rs/order
Ch = 100/ unit/order
Cs = 400 each time
⇒ 50S* = Q * 
Ch 
= 50 100 CS + Ch 500
S* ⇒ 10
Softly Stock Justified by the carrying cost = Maximum Inventory level M = Q* – S* = 40Correct Option: C
D = 1000 Units
CO = 100 Rs/order
Ch = 100/ unit/order
Cs = 400 each time
⇒ 50S* = Q * Ch = 50 100 CS + Ch 500
S* ⇒ 10
Softly Stock Justified by the carrying cost = Maximum Inventory level M = Q* – S* = 40
- A component can be produced by any of the four processes, I, II, III and IV. Process I has fixed cost of Rs. 20 and variable cost of Rs. 3 per piece. Process II has a fixed cost of Rs. 50 and variable cost of Rs. 1 per piece. Process III has a fixed cost of Rs. 40.00 and variable cost of Rs. 2 per piece. Process IV has fixed cost of Rs. 10 and Variable cost Rs. 4 per piece. If company wishes to produce 100 pieces of the component, from economic point of view it should choose
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Total cost = Fixed Cost (FC) + Number of piece (n) × Variable Cost per piece (VC)
TC = FC + (n) x V.C
For I
TCI = 20+ (100) 3 = 320
For II
TCII = 50 + (100) 1 = 150
For III
TCIII = 40 + 100 (2) = 240
For IV
TCIV = 10 + 100 (4) = 410
So from economical point of view, one should chose process IICorrect Option: B
Total cost = Fixed Cost (FC) + Number of piece (n) × Variable Cost per piece (VC)
TC = FC + (n) x V.C
For I
TCI = 20+ (100) 3 = 320
For II
TCII = 50 + (100) 1 = 150
For III
TCIII = 40 + 100 (2) = 240
For IV
TCIV = 10 + 100 (4) = 410
So from economical point of view, one should chose process II
- The symbol used for Transport in work study is
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NA
Correct Option: A
NA
