Forecasting
Exam Duration: 45 Mins Total Questions : 20
Forecasting provides guidelines on
- (a)
how many of the products produced are likely to be demanded by the customers
- (b)
material requirements schedules
- (c)
amount of business, the firm can expect during the planning period
- (d)
All of the above
If forecast and actual demand for march are 60 and 70 respectively. If a = 0.1, then forecasted value of April is
- (a)
70
- (b)
61
- (c)
69
- (d)
64
The time at which the processing of job in the machine is completed is
- (a)
processing time
- (b)
due date
- (c)
completion time
- (d)
flow time
oThe fixed cost of Rs. 25000 and break even quality of 35000 units are estimated for a production. The profit at a sales volume of 50000 units is
- (a)
10000
- (b)
10500
- (c)
10714
- (d)
None of these
Earliest Due Date EDD sequencing of jobs in a single facility, would
- (a)
minimise the mean tardiness
- (b)
minimise the mean lateness
- (c)
minimise the maximum tardiness
- (d)
None of the above
Short Processing Time (SPT) sequencing of jobs in a single facility would minimise the
- (a)
mean lateness
- (b)
maximum tardiness
- (c)
Both (a) and (b)
- (d)
mean tardiness
Annual carrying cost, for a given annual demand
- (a)
will increase with the increase in the number of orders placed per annum
- (b)
will decrease with the increase in the number of orders placed per annum
- (c)
is independent of number of orders placed per annum
- (d)
will increase with the decrease in lead time
When the ordering cost is increased to 16 times, the EOO will be increased to
- (a)
2 times
- (b)
4 times
- (c)
8 times
- (d)
remains same
Mean rate of consumption during lead time (R) multiplied by man lead time (L) is equal to
- (a)
buffer stock
- (b)
safety stock
- (c)
reserve stock
- (d)
None of these
Item B requires four numbers of item C. Product P requires two numbers of items B and five number of item C. If five numbers of product P are to be manufactured then, the number of item C required will be
- (a)
65
- (b)
50
- (c)
75
- (d)
30
The lead time consumption is 600 units. The annual consumption is 8000 units. The company has a policy of EOQ ordering and maintenance of 200 units as safety stock. The Reorder Point (ROP) is
- (a)
500 units
- (b)
700 units
- (c)
800 units
- (d)
None of these
The fixed per cost of land is Rs. 50000. The variable cost is Rs.10 per unit production. If selling price is Rs.20 per unit and production is 6000 units then, margin of safety is
- (a)
1000 units
- (b)
2000 units
- (c)
3000 units
- (d)
None of these
The demand and forecast for a month are 12000 and 10000 respectively. By using single exponential smoothing method forecast for next month is (given smoothing coefficient = 0.25)
- (a)
10500
- (b)
10510
- (c)
10230
- (d)
10600
Four jobs are to be processed on a machine as per data listed in the table.
Job | Processing time (in day) | Due date |
I II III IV |
5 8 2 6 |
7 10 19 15 |
If the Earliest Due Date (EDD) rule is used to sequencing the jobs then, the number of jobs delayed is
- (a)
1
- (b)
2
- (c)
3
- (d)
4
Four jobs are to be processed on a machine as per data listed in the table.
Job | Processing time (in day) | Due date |
I II III IV |
5 8 2 6 |
7 10 19 15 |
Using the Short Processing Time (SPT) rule total tardiness is
- (a)
8
- (b)
7
- (c)
11
- (d)
13
In a manufacturing shop each job must pass through two machines (M1 and M2' in that order). The processing time (in hours) for these jobs is
Machines | Jobs | |||||
A | B | C | D | E | F | |
M1 M2 |
16 7 |
33 20 |
9 14 |
28 21 |
12 15 |
17 8 |
The optimal make span (in hour) of the shop is
- (a)
120
- (b)
122
- (c)
110
- (d)
130
An oil engine manufacturer purchases lubricant at rate of Rs. 42 per piece from a vendor. Requirement of these lubricant is 1800 per year. If cost per placement of an order is Rs. 16 and inventory carrying charge per rupee per year is only 20 paise. The order quantity per order is
- (a)
80
- (b)
83
- (c)
82
- (d)
85
manufacturing company purchases 9000 parts of a machine for its annual requirement, ordering one month usage at a time. Each part cost Rs. 20. The ordering cost per order is Rs. 15 and carryinq charges are 15% of average inventory per year.
The economical order quantity is
- (a)
300 units
- (b)
350 units
- (c)
250 units
- (d)
400 units
manufacturing company purchases 9000 parts of a machine for its annual requirement, ordering one month usage at a time. Each part cost Rs. 20. The ordering cost per order is Rs. 15 and carryinq charges are 15% of average inventory per year.
If company does not follow any policy (company.does not order economical quantity) then, total annual variable cost is
- (a)
Rs. 1200
- (b)
Rs. 1198
- (c)
Rs. 1305
- (d)
Rs. 1491
Consider the following data
Quantity | Unit price (in Rs.) |
0≤Q1≤650 650≤Q2<800 800≤Q3 |
20 18.50 17.50 |
The monthly demand for the product is 300 units, the cost of carrying inventory is 2% of the unit price of the item and cost of ordering is Rs.400. The optimum order quantity is
- (a)
700
- (b)
900
- (c)
800
- (d)
828