1. Read the following case and answer the questions. Swastik Industries has a 6 months demand cycle for one of their products. Following are the details:

Months Forecast Demand (Units) Working days/ months

June 200 25
July 300 20
August 350 21
September 400 21
October 450 24
November 250 25

The company works on a single shift basis of 8 hours per shift. Each unit requires 2 labour-hours to be produced at a labour cost of RS 70 per hour. (Regular Rate) or RS 100 per hour. (Overtime rate) Units can be subcontracted at a cost of RS 400 per unit where as the in-house manufacturing cost is estimated at RS 250 per unit in regular production. (including labour and other overheads) There are currently 22 workers employed in the company. The hiring and training cost of the additional workers are RS 2000 per person where the lay-off cost are RS 3000 per person. Company's policy is to retain a safety stock of 25% of monthly forecast and each month's safety stock becomes the beginning inventory for the next month. The beginning inventory in January is 50 units and the inventory carrying cost is estimated to be RS 5 per unit per month. Stock out cost is estimated as RS 100 per unit per month. Two aggregate plans are to be proposed as below:

Plan 1 Vary the workforce size to accommodate demand.

Plan 2 Maintain the constant workforce of 22 and build inventory or incur stock out cost.

Evaluate these plans and decide which one is better.

2. Consider a company having probabilistic demand pattern for certain raw material required during the lead time. Accounting both the carrying cost and stock out cost, how can you determine the optimal level of -Reserve Stock, Safety Stock and Buffer Stock of raw material? Take an example to explain this.

"A Production Model in inventory management considers inventory depletion and replenishment simultaneously".

State the above statement is true or false, along with justification

A chemical company in MIDC Bhosari, Pune has following data for one of its items. Calculate Safety Stock Reorder level considering an appropriate inventory model.

• Mean Demand of chemical 300 Liters per day

• Standard Deviation 10 Liters

• Lead Time 6 days

• Risk of Stock out acceptable (Service factor 2.05)

4. The following data relates to the inventory in Tata Motors:

Item Trail axle Connecting rod Bearing

Price per unit 5,000 5,500 4,000
Carrying cost (RS per unit per year) 50 50 70
Ordering cost (RS per order) 300 350 200
Annual requirement (no. of units) 1,000 800 600
Space required (sq. feet per unit of item) 2.5 1.5 1

Determine the optimal order quantities for the three items considering available space in the stores as 6000 sq. feet.

What are the various mathematical expressions for doing production planning? Explain two expressions along with examples.

How will you exercise the principles of Production Planning and Control in the operations of a bank

JIT is essential as well as unnecessary. Justify this statement with appropriate examples.

How will you employ a tree diagram for describing a planning decision for a turnkey project handling company? Consider a diagram with at least six levels.

7. Consider an example from a service industry. Discuss. FSN Model related to the given example.