Examination Paper of Semester IV
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Semester-IV Examination Paper MM.100
Production Planning & Control
1. Buffer inventory is also called
a. Inventory stock
b. Safety stock
c. Transit stock
d. Buffer stock
2. Qualitative forecasting is
a. Intrinsic forecast
b. Forecasts that are generated from information that does not have a well defined analytic
structure
c. Based on random pattern
d. None of the above
...............
7. Drum-buffer-rope is
a. Shipping time buffer
b. Constraint time buffer
c. Assembly time buffer
d. Scheduling system developed for the theory of constrains and is closely related to a pull
system inherent with lean production
8. A simple visual aid which schedule work according to the priority, but also access the states of all
jobs in order is
a. Total slack
b. Critical ratio
c. Slack per operation
d. Gantt chart
9. Location of each item has its own distinctive location in stockrooms and ware-house
a. Random
b. Zoned random
c. Home base
d. None of the above
10. Economic models for causal forecasting involves
a. Examining of flow of goods and services throughout the entire economy
b. A statistical analysis of various sectors of the economy
c. Gathering of data for individual products
d. None of the above
Part Two:
1. Write a short note on Anticipation inventory?
2. Define “Master production schedule”?
3. Write a short note on Allocation?
4. What do you understand by capacity planning?
Caselet 1
A company has a central warehouse in Chicago that supplies the demand of three branch warehouse:
one in Baltimore, one in New Orleans, and one in Cleveland. The following tables provide the
relevant data:
Warehouse Safety Stock Lead Time Order Quantity On-hand
Baltimore 50 2 periods 350 250
New Orleans 100 1 period 200 150
Cleveland 80 2 periods 500 200
Chicago 200 2 periods 1500 750
Gross requirements on the branch warehouses:
Period 1 2 3 4 5 6 7 8 9
Baltimore 100 80 150 90 100 85 110 120 100
New Orleans 70 65 75 50 90 80 75 80 55
Cleveland 110 90 65 135 85 70 140 100 60
1. Determine DRP records for all four warehouses?
2. What will be the DRP structure for the above four warehouses?
Caselet 2
The Ajay Company has several items they store in inventory. The table below shows the annual
demand and the item cost.
Item Item Cost Annual Usage (# units)
C34 $12 4,000
B99 $23 8,000
V94 $19 5,500
H64 $41 1,200
P77 $72 400
Y12 $62 1,100
R74 $33 1,440
Examination Paper of Semester IV
IIBM Institute of Business Management 4
One additional item, the M22, has a very low usage (300 per year) and a low item cost ($3 per unit),
but has a very long lead time and is often difficult to obtain.
1. How should M22 item be handled and why?
2. Being an inventory manager, what recommendation do you suggest for inventory store of Ajay
Company?
1. Discuss about inventory management? Explain in detail about Economic order Quantity?
2. Provide brief about Capacity Requirement Planning?
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Semester-IV Examination Paper MM.100
Production Planning & Control
1. Buffer inventory is also called
a. Inventory stock
b. Safety stock
c. Transit stock
d. Buffer stock
2. Qualitative forecasting is
a. Intrinsic forecast
b. Forecasts that are generated from information that does not have a well defined analytic
structure
c. Based on random pattern
d. None of the above
...............
7. Drum-buffer-rope is
a. Shipping time buffer
b. Constraint time buffer
c. Assembly time buffer
d. Scheduling system developed for the theory of constrains and is closely related to a pull
system inherent with lean production
8. A simple visual aid which schedule work according to the priority, but also access the states of all
jobs in order is
a. Total slack
b. Critical ratio
c. Slack per operation
d. Gantt chart
9. Location of each item has its own distinctive location in stockrooms and ware-house
a. Random
b. Zoned random
c. Home base
d. None of the above
10. Economic models for causal forecasting involves
a. Examining of flow of goods and services throughout the entire economy
b. A statistical analysis of various sectors of the economy
c. Gathering of data for individual products
d. None of the above
Part Two:
1. Write a short note on Anticipation inventory?
2. Define “Master production schedule”?
3. Write a short note on Allocation?
4. What do you understand by capacity planning?
Caselet 1
A company has a central warehouse in Chicago that supplies the demand of three branch warehouse:
one in Baltimore, one in New Orleans, and one in Cleveland. The following tables provide the
relevant data:
Warehouse Safety Stock Lead Time Order Quantity On-hand
Baltimore 50 2 periods 350 250
New Orleans 100 1 period 200 150
Cleveland 80 2 periods 500 200
Chicago 200 2 periods 1500 750
Gross requirements on the branch warehouses:
Period 1 2 3 4 5 6 7 8 9
Baltimore 100 80 150 90 100 85 110 120 100
New Orleans 70 65 75 50 90 80 75 80 55
Cleveland 110 90 65 135 85 70 140 100 60
1. Determine DRP records for all four warehouses?
2. What will be the DRP structure for the above four warehouses?
Caselet 2
The Ajay Company has several items they store in inventory. The table below shows the annual
demand and the item cost.
Item Item Cost Annual Usage (# units)
C34 $12 4,000
B99 $23 8,000
V94 $19 5,500
H64 $41 1,200
P77 $72 400
Y12 $62 1,100
R74 $33 1,440
Examination Paper of Semester IV
IIBM Institute of Business Management 4
One additional item, the M22, has a very low usage (300 per year) and a low item cost ($3 per unit),
but has a very long lead time and is often difficult to obtain.
1. How should M22 item be handled and why?
2. Being an inventory manager, what recommendation do you suggest for inventory store of Ajay
Company?
1. Discuss about inventory management? Explain in detail about Economic order Quantity?
2. Provide brief about Capacity Requirement Planning?
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