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Section-A

problem1) describe the supply chain involved in making the bottle of Coke which you have just picked up from your neighbourhood retail store.

problem2) How do transport companies benefit from technology like Global Positioning System (GPS)? With the help of GPS, could transport companies track their trucks on real time basis.

problem3) Given the information below, what are the EOQ and reorder point?

Annual Demand = 1,000 units
Days per year considered in average daily demand = 365
Cost to place an order = Rs. 10
Holding cost per unit per year = Rs. 2.50
Lead time = 7 days
Cost per unit = Rs. 15

problem4) Assume a retail company’s new annual report claims their costs of goods sold for the year is Rs. 160 million and their total average inventory (production materials + work in-process) is worth Rs. 35 million.  This company generally has an inventory turnover ratio of 10.  What is this year’s Inventory Turnover ratio?  What does it mean?

Section-B

Consider the monthly demand for a company XYZ Ltd.

Sales           2006      2007     2008
January       2000      5000     5000
February      5000      4000     2000
March          5000      4000     3000
April             3000      2000     2000
May             4000      5000     7000
June             6000      7000     6000
July              7000     10000     8000
August          10000   14000   10000
September    15000   16000    20000
October        15000    16000    20000
November    18000    20000    22000
December      8000    12000      8000

problem5) Use 6-month, 12 month moving average, exponential smoothing with coefficient with alpha of 0.1, 0.2 to derive forecast for 2009 Jan to December. For each of the method compute the MAD and Bias and discuss which among these models will be suitable for forecasting the demand.

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