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  1. What is the objective of marketing? What three ways will help it achieve this objective?
  2. For the following data, calculate the number of workers required for level production and the resulting month-end inventories. Each worker can produce 9 units per day, and the desired ending inventory is 800 units. Why is it not possible to reach the ending inventory target?
  3. What is a scheduled receipt? From where does it originate?
  4. What are the two ways of balancing capacity available and load? Which is preferred? Why?
  5. A company is negotiating with a potential supplier for the purchase of 10,000 widgets. The company estimates that the supplier’s variable costs are $5 per unit and that the fixed costs, depreciation, overhead etc., are $5000. The supplier quotes a price of $10 per unit. Calculate the estimated average cost per unit. Do you think $10 is too much to pay? Could the purchasing department negotiate a better price?
  6. What action should be taken when unacceptable error is found in tracking a forecast?
  7. How do each of the following influence inventory decisions?
      1. Lumpy Demand
      2. Minimum orders
      3. Transportation Costs
      4. Multiples
  1. Why is stock location important in a warehouse? Name and describe four basic systems of stock location?
  2. A company has an annual demand for a product of 1000 units, a carrying cost of $20 per,unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $10. Run costs are $2 per unit. Calculate:
      1. The EOQ (Economic Order Quality) before setup reduction
      2. The EOQ (Economic Order Quality) after setup reduction
      3. The total and unit cost before and after setup reduction.
  1. Why was the third party registration system established for ISO 9000 certification?



  1. What is wealth, and how is it created? What is value added, and how is it achieved? Explain with examples?
  2. What is a material requirements plan? What is the difference between dependent and independent demand? Explain with examples.
  3. Complete the following table. Lead time for the part is two weeks. The lot size is 100. What is the projected available at the end of week 3? When is it planned to release an order?
  4. What is capacity planning? What are the responsibilities of capacity management? Describe the steps in capacity planning? Explain with examples?
  5. What is the responsibility of production activity control? What are the major functions of planning, implementation & control? Explain with examples?
  6. An order for 50 of a product is processed on world centers A and B. The setup time on A in 60 minutes, and run time is 5 minutes per piece. The setup time on B is 30 minutes and the run time is 6 minutes per piece. Wait time between the two operations is 10 houses. The move time between A and B is 60 Minutes. Wait time after operations is 10 houses. The move time into stores is 2 houses. The move time into stores is 2 hours. Queue at work center A is 40 hours and at B is 35 hours. Calculate the total manufacturing lead time for the order. And also calculate the total manufacturing lead time for the order.
  7. What is period order quantity? How is it established? When can it be used? Explain with examples? Also define

1) Annual ordering cost 2) Annual Carrying cost 3) Total annual cost. With some examples?

  1. The standard deviation of demand during the lead time is 100 units.
      1. a) Calculate the safety stock required to increase the service levels from 75% to 80%, 85% to 90%, 90% to 99.99% ? What conclusion do you reach.
      1. b) Calculate the change in safety stock required for the following service levels: 75%, 80%, 85%, 90%, 95%, 99.99
  1. What are the five basic modes of transportation? What are the three physical elements in the transportation system? For each of the five modes, describe who provides them and how they are funded. Also describe why train services are cheaper than road transport for bulky items and why trucks provide a fast flexible service.
  2. What is valve to the user? How is it related to quality? What are the elements of product cycle loop? For what is each responsible? Prepare a situation in which the above terms can be easily explained an illustrated.


  1. What is supply chain? Describe five important factors in supply chains.
  2. A company wants to develop a level production plan for a family of products. The opening inventory is 600 units, and a decrease to 200 units is expected by the end of the plan. The
      1. demand for each of the months is given in what follows. How much should the Company produce
      2. each month? What will be the ending inventory in each month? Do you see any Problems with
      3. the plan?
  3. What are the major inputs to the MRP system?
  4. Define “capacity available” what are the four factors that affect it?
  5. If purchase were 45% of sales and other expenses were 45% of sales, what would be the increase
  6. In profit if, through better purchasing, the cost of purchases was reduced to 43% of sales?
  7. What is bias error in forecasting? What are some of the causes?
  8. Define each of the following in your own words and as a formula:
      1. Annual ordering cost
      2. Annual Carrying cost
      3. Total annual cost.
  1. Why is cycle counting a better way to audit inventory records than an annual physical? Inventory?

9. Describe general-purpose and special-purpose machinery. Compare each for flexibility of use,

    1. operator involvement, run time per piece, setup time, quality, capital cost and Application.
  1. What is the difference between ISO 9001, 9002 and 9003?


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