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Final Term Spring 2021

The document outlines the final exam for the Supply Chain Engineering course at Northeastern University, detailing the exam structure, instructions, and seven specific problems to be solved. The exam is scheduled for April 26, 2021, with strict guidelines regarding the use of materials and submission of answers. Each problem covers various aspects of supply chain management, including optimization, demand forecasting, and cost analysis.

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10 views4 pages

Final Term Spring 2021

The document outlines the final exam for the Supply Chain Engineering course at Northeastern University, detailing the exam structure, instructions, and seven specific problems to be solved. The exam is scheduled for April 26, 2021, with strict guidelines regarding the use of materials and submission of answers. Each problem covers various aspects of supply chain management, including optimization, demand forecasting, and cost analysis.

Uploaded by

Cs Go
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NORTHEASTERN UNIVERSITY

Department of Mechanical and Industrial Engineering


Supply Chain Engineering Prof. Gupta
IE 7200 Spring 2021 (Mondays)

Final Exam
(Time Allowed: 2 hours)
(6:00 PM – 8:00 PM, Boston Time)

(Due: April 26, 2021 – 8:20 PM, Boston Time)

INSTRUCTIONS

1. There are seven problems in the exam and all of these must be done correctly to get
maximum points.

2. Remember, 'nothing is obvious'. Please write everything clearly including all


assumptions.

3. The exam is for two hours. The exam starts at 6 PM, Boston time on April 26, 2021.
We will follow an honor system (no cheating or consulting with anyone and you will
be expected to take no more than the two hours allotted to work on the exam). Thus,
the exam will end at 8 PM, Boston time on April 26, 2021.

4. You cannot use computers, any software, cell phones, cameras or anything with WiFi
capability while taking the exam. You may, however, use your notes and a standalone
calculator with no Wi-Fi or camera capability during the exam.

5. All your answers must be completely handwritten. Each problem must be answered
on a separate sheet. Write your name and page number on every sheet.

6. Upload your exam as one file immediately after 8:00 PM, Boston time and do not
wait till the last minute to do so. No excuses!

7. GOOD LUCK !
2

Problem 1.
(a) What is the objective of a supply chain? (3 points)
(b) What are the major drivers of supply chain performance? (4 points)
(c) How can supply chain macro processes be classified? (3 points)

Problem 2. A manufacturing line has three production stations, A, B, and C. In-process


storage is possible between the stations, but at the monthly cost of $100 for storage
between A and B and $150 between B and C. The storage would offset any station
downtime in the preceding station(s). Income per item produced is $5 and the maximum
monthly production rate is 1000 units. The downtimes for stations A, B, and C are given
below

Production Station Downtime Percentage


A 5
B 3
C 7

Determine the optimum income-cost relationship from the four possible configurations of
in-process inventory management. Assume the station downtimes are statistically
independent. (15 points)

Problem 3. A cellphone manufacturer has identified two customer segments; one that
prefers a delux model cellphone and is willing to pay a higher price for it and another that
is more price-concious and is willing to accept a standard model cellphone. Assume that
the cost of manufacturing the delux model cellphone is $700 whereas a standard model
cellphone costs $500 to manufacture. Demand in the customized segment is d1 = 25,000
– 15p1 while the demand in the price sensitive segment is d2 = 35,000 – 20p2.
(a) What price should the manufacturer charge in each segment if his goal is to maximize
profits? (7 points)
(b) What is the total profit? (8 points)

Problem 4. The demand for a certain manufactured product during the next five months
is expected to be 200, 500, 250, 450 and 550 units respectively. The cost of
manufacturing with regular and overtime options and the capacities are given below:

Manufacturing Cost Capacity/month


Regular Production 20 300
Overtime Production 40 150

The carrying cost is $5 per month/unit. No backorders allowed.


(a) Set this up as a transportation problem and find the initial basic feasible solution
using North-West Corner rule. (5 points)
(b) Make sure that there is appropriate number of filled cells. How many filled cells
are there? (5 points)
(c) What is the total cost at this stage? (5 points)
3

Problem 5. Text-On-Line, an online bookseller, is located in Miami, Florida, and its


books are ordered by students all over North America. Text-On-Line currently divides
the United States into six territories (Northeast, Southeast, Midnorth, Midsouth,
Northwest and Southwest), each with its own warehouse. All inventories are maintained
in respective territories and replenished from Miami every three weeks using USPS.
The average replenishment lead-time using USPS is one week. USPS charges at a rate
of $2.20+0.99x, where x is the quantity shipped in pounds. The books sold fall into two
categories - Hardcover and Softcover. Hardcover books weigh 8 pounds and cost $300
each. Softcover books weigh 3 pound and cost $200 each.
Weekly demand for Hardcover books in each territory is normally distributed, with a
mean of H=2000 and a standard deviation of H=600. Weekly demand for Softcover
books in each territory is normally distributed, with a mean of S=10000 and a standard
deviation of S=1000. Text-On-Line maintains sufficient safety inventories in each
territory to provide a cycle service level (CSL) of 0.95 for each product. Holding cost at
Text-On-Line is 40 percent.
Calculate Text-On-Line’s total annual cost (inventory plus transportation cost).
(15 points)

Problem 6. Consider an airline that allocates two types of fares on a flight. The leisure
fare is $400 per ticket, the business fare is $900 per ticket, and there are 100 seats on the
plane. The airline assumes that they can sell as many seats as they make available at the
leisure fare, but the business fare is random and follows the demand distribution shown in
the table below.
Demand Probability
10 0.2
20 0.4
30 0.3
40 0.1
The airline is considering allocating either 20 or 30 seats to business fare. How many
seats should the airline allocate to business fare? Justify your answer. (15 points)

Problem 7. The following processing times were obtained for a 6-job, three-machine
problem.
(a) Use Johnson's algorithm to find a schedule (5 points).
(b) Is this schedule optimum? Why or why not? (5 points).
(c) Use the Gantt chart to determine the makespan of this schedule. (5 points).
Processing Times
Job M/c 1 M/c 2 M/c 3
1 9 3 13
2 8 2 12
3 11 6 9
4 10 1 7
5 7 4 8
6 12 4 9

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