INVENTORY AND PRODUCTION CONTROL

Transcription

1 KINDLY GO THROUGH THE CHAPTERS 32, 34 & 36 OF THE COMPREHENSIVE VIDEO LECTURES FOR THE TOPICS FOR THE WEEK BEFORE YOU ATTEMPT THE QUESTIONS BELOW AS THE TOPICS WERE WELL DISCUSSED IN THE VIDEO LECTURES. THANKS ICAN QT WEEK 12 TOPICS: INVENTORY AND PRODUCTION CONTROL NETWORK ANALYSIS AND SIMULATION OBJECTIVE AND SHORT ANSWER QUESTIONS 1. The main objective of inventory control is to A. Maximize profit B. Minimize cost C. Maximize revenue D. Minimize average cost 2. A point at which a firm neither makes profit nor loss is called A. Saturation point B. Break-even point C. Minimum point STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 1

2 D. Maximum point basically deals with when and how much to order an inventory item and emphasis is on the minimization of the total cost associated with inventories A. Management B. Inventory control and management C. Network analysis D. Operations management 4. The period of time expressed in days, weeks, months etc between ordering and replenishment is called D. Economic order quantity (EOQ) 5. The amount required by sales, production etc usually expressed as a rate of demand per week, month etc is called STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 2

3 D. Economic order quantity (EOQ) 6... is a calculated ordering quantity which minimizes the balance of costs between inventory holding costs and re-order costs D. Economic order quantity (EOQ) 7. The number of items physically stock at a given point in time is called D. Economic order quantity (EOQ) 8. A stock allowance to cover errors in forecasting the lead time or the demand during the lead time is called D. Buffer or minimum or safety stock STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 3

4 9. A stock level selected as the maximum desirable is used as an indicator to show when stocks have risen too high is called A. Re-order quantity B. Re-order level C. Maximum stock D. Minimum stock 10. The level of stock at which a further replenishment order should be placed is called A. Re-order quantity B. Re-order level C. Maximum stock D. Minimum stock 11. The quantity of the replenishment order is regarded as A. Re-order quantity B. Re-order level C. Maximum stock D. Minimum stock 12. A set of operations research techniques needed and useful for planning, scheduling and controlling large and complex project is called STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 4

5 A. Project planning technique B. Scheduling technique C. Project planning and scheduling techniques D. Network analysis 13. An activity that carries zero duration because it does not consume either time or resource is called A. Activities B. Events C. Dummy activity D. Dummy 14. The amount of time by which a particular activity or event can be delayed without the time schedule of the network being affected is called A. Float or slack B. Events C. Dummy activity D. Dummy 15. Some of the possible areas of application of network analysis include A. Preparation of proposals and bids for large projects B. Projects such as moving to new house, office or house renovation STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 5

6 C. Construction project such as house, bridge, road, highways etc D. All of the above THEORY QUESTION ONE a. What do you understand by EOQ? Itemize its basic assumptions b. Write short notes on the Inventory Control terminologies i. Lead or procurement time ii. Demand iii. EOQ iv. Physical stock v. Free stock vi. Buffer stock vii. Maximum stock viii. Re-order level ix. Re-order quantity STARRY GOLD ACADEMY , , Page 6

7 QUESTION TWO a. A company uses 50,000 certain materials per annum which are N10 each to purchase. The ordering and handling costs are N150 per order and carrying or holding costs are 15% per annum, calculate the EOQ. b. Assume the same data in (a) above except that stockouts are now permitted. When a stockout occurs and an order is received for materials the firm has agreed to retain the order and when replenishment are received, with delivery cost of N0.75 per material. Other cost associated with stockouts are estimated as N0.25 per unit. Find the EOQ. QUESTION THREE A project consists of seven activities whose three time estimates are given below; Activity Activity s Name t0 ti tp 1-2 A B C D E STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 7

8 4-6 F G a. Find the expected duration and variance for each activity b. Draw a network diagram c. What is the expected project length duration? d. Calculate the variance and standard deviation of the project length STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 8