M.Sc. DEGREE EXAMINATION, NOVEMBER/DECMBER 2017.
Third Semester
OR SQC
Paper II INVENTORY AND INFORMATION THEORY
2 21232-A
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 6 30 Marks)
1. What are inventories? What are the objectives that should be fulfilled by an
inventory control system?
2. Explain the different costs that are involved in inventory problems with suitable
examples.
3. Explain EOQ model with warehouse spare constraint.
4. Explain ABC analysis and its use to various functional areas.
5. Explain instantaneous demand inventory control model with shortages, continuous
replenishment and without set-up cost.
6. Explain policy with exponential demand.
7. A bag contains 100 white balls 50 black balls and 50 blue balls. Another bag
contains 80 white balls, 80 black balls and 40 blue balls. Determine the expected
amount of information associated with the experiment of drawing a bali from each
bag and predicting its colour.
8. Explain entropy function and its colour.
SECTION — B
Answer ALL questions. 10 40 Marks)
9. Discuss the problems of EOQ with shortages.
Or
Discuss the problems of EOQ without shortages.

10. Explain multi-item inventory with constraint on investment and
average inventory level.
Or
Discuss the inventory control models with quantity discounts.
11. Discuss the inventory problems with uniform demand.
Or
Explain Brown's single and double exponential smoothing methods.
12. State and prove the relation between joint and marginal entropies and
conditional entropy and marginal entropy.
Or

Assuming the output probabilities P10 4 and P20 4 . Determine
P02, P01 Conditional backward input probabilities and various joint
probabilities.
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