M&S Unit 2 Question Bank
M&S Unit 2 Question Bank
14. A small store of readymade garments, there is one clerk at the counter who is to check the
bills, receive payments and place and the packed garments into fancy bags, etc. the
customer’s arrival at the check counter is a random phenomenon and the time between the
arrival varies from 1 minute to 5 minutes, the frequency distribution for which is given in table.
The service time (time taken by the counter clerk) varies from 1 minute to 3 minutes. The
manager of stores feels that the counter clerk is not sufficiently loaded with work and wants
to assign to him additional work. But before taking the decision he likes to know the precisely
by what percentage of time the counter clerk is idle.
15. A company trading in motor vehicle spare wishes to determine the level of stock it should
carry for the items in its range. Demand is not certain and there is a lead time for stock
replenishment. For item X, following information is obtained.
Demand
3 4 5 6 7
(Units/day)
Probability 0.1 0.2 0.3 0.3 0.1
Inventory carrying cost per day = 20 paise, Ordering cost per order = Rs 5, Lead time for
replenishment = 3 days
Stock in hand at beginning of the simulation exercise was 20 units. You are required to carry
out simulation run over a period of 10 days with objective of evaluating the following
inventory rule: order 15 units when present inventory plus any outstanding order falls below
15 units. the sequence of random number used is 0, 9, 1, 1, 5, 1, 8, 6, 3, 5, 7, 1, 2, 9 using
first number for day one.
16. consider an inventory control problem in which demand during lead time as well as lead
time distribution are given in table below. The reorder point is 6 units and reorder quantity
is 12 units. If ordering cost is Rs 100 per order, inventory carrying cost is Rs 4 per unit per
week and the shortage cost is Rs 60 per unit per week, find the total inventory cost for 15
weeks. Assume an initial inventory of 10 units.