Final 2018
Final 2018
Faculty of Engineering
Department of Production Engineering and Mechanical Design
Planning of Factories and Production Processes
PRE5323—May 30 2018—(9 AM)
Final May 2018, 3rdYear at Production and Mechanical Design Engineering Department.
Please solve the next problems. (Time: 3 hrs. Total marks: 110.) Graphics are necessary for all problems.
1-[20 Marks]-
(a) Construct a hierarchy for general plant location factors.
(b) State the potential facility layouts and compare between them in a tabular form.
(c) State the external and internal change drivers for production enterprises.
(d) Discuss the major types/levels of planning.
2-[25 Marks]-The quarterly sales of a product for last three years are given below. Estimate the quarterly
sales for the next year.
Year 1 2 3
Quarter 1 2 3 4 1 2 3 4 1 2 3 4
Sales (1000) 15 30 37 24 21 30 45 29 32 45 50 39
3-[25 Marks]-A producer of an orange juice needs to develop an aggregate plan for the coming year. The
company currently uses 200 workers. Each worker is capable of producing 2,000 gallons of juice per
month on regular time. Workers are paid $1,500 per worker per month on regular time. It costs $500 to
hire a worker, and $200 to fire a worker. Holding costs are $0.02 per gallon per month and back-orders
are not allowed. The beginning inventory is 300,000 gallons and the desired ending inventory is also
300,000 gallons of juice. Monthly demand forecast, in 1000 gallons, is projected as in the table. Construct
a level work force aggregate plan and find its cost.
Month 1 2 3 4 5 6 7 8 9 10 11 12
Demand (1000 Gallons) 200 250 300 400 450 500 500 400 350 300 250 200
4-[20 Marks]-The Dorton University president has asked the OM department to assign eight biology
professors (A, B, C, D, E, F, G, and H) to eight offices (numbered 1 to 8 in the diagram) in the new
biology building. The following distances and two-way flows are given:
Distances between offices (Feet) Two-way flows (Units per period) The New Biology Building
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 North Wing
1 - 10 20 30 15 18 25 34 1 - 2 0 0 5 0 0 0
1 2 3 4
2 - 10 20 18 15 18 25 2 - 0 0 0 3 0 2
3 - 10 25 18 15 18 3 - 0 0 0 0 3
4 - 34 25 18 15 4 - 4 0 0 0 Courtyard
5 - 10 20 30 5 - 1 0 0
6 - 10 20 6 - 1 0
5 6 7 8
7 - 10 7 - 4
8 - 8 - South Wing
The biology department has sent the following information and requests to the OM department:
Office 1, 4, 5, and 8 are the only offices with windows.
A must be assigned office 1.
D and E must have windows.
H must be directly across the courtyard from D.
A, G, and H must be in the same wing.
F must not be next to D or G or directly across from G.
Find the optimal assignment of professors to offices that meets all the requests of the biology department
and minimizes total material handling cost.
5-[20 Marks]-The purchase manager of a company has collected the following data for one of the A class
items:
Capital interest rate = 20% Pilferage while loading inventory = 5%
Order processing cost for each order = $100 Other holding charges = 15%
Inspection cost per order = $50 Other procurement cost per order = $170
Follow up cost for each order = $80 Cost per item = $10
Annual Demand = 1,000 units
What should be the ordering policy of the purchase manager? Show your answer graphically.