MTH601 Operations Research Assignment No. 2 Fall Semester December 2012

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MTH601 Operations Research Assignment No. 2 Fall Semester December 2012


Assignment: # 2 (Fall 2012)
MTH601 (Operations Research)
Total Marks = 20
Due Date: 4th Dec 2012
INSTRUCTIONS

Please read the following instructions before attempting to solve this assignment
1. In order to attempt this assignment you should have full command on
Lecture # 11 to Lecture # 16.
2. In order to solve this assignment you have strong concepts about following topics
 Inventory and Control.
 Inventory Models.
 Dynamic Order Quantity.
 ABC Analysis.
3. Try to get the concepts, consolidate your concepts and ideas from these questions which you learn in Lecture # 11 to Lecture # 16
4. You should concern recommended books for clarify your concepts as handouts are not sufficient.
5. Try to make solution by yourself and protect your work from other students. If we found the solution files of some students are same then we will reward zero marks to all those students.
6. You are supposed to submit your assignment in Word format any other formats like scan images, PDF format etc will not be accepted and we will give zero marks to these assignments.
Assignments through e-mail are not acceptable after due date (If there is any problem in submitting your assignment through LMS, you can send your solution file through email with in due date). You are advised to upload your assignment at least two days before Due date.

Question#1

The annual demand for a component is 7500 units. The carrying cost is Rs.600/unit/year,the ordering cost is Rs.1600 per order and the shortage cost is Rs.2200/unit/year.
Find the following;
1) Optimal values of economic order quantity
2) Maximum inventory
3) Maximum shortage quantity
4) Cycle time
5) Inventory period

Question#2

Find Percentage of cumulative Annual Usage by using ABC analysis.
Items. Annual usage Rank
1 3000 1
2 1250 5
3 2400 2
4 960 6
5 2400 3
6 700 7
7 500 8
8 1500 4