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problem 1) Describe Decision tree analysis with a Schematic diagram

b) The following are the cost and sales data of a manufacturer selling 3 products X, Y, Z.

Product               Selling Price/ Unit              Variable cost/ unit         Percentage of rupee sales volume
X                                     4                                    3                                          20%
Y                                     5                                    4                                          40%
Z                                     8                                   6                                           40%

Annual capacity of the manufacturer is Rs. 15, 00,000 of total sales value. Annual fixed cost is Rs. 2, 30,000.

(i) Find out BEP in terms of rupee sales volume and the contribution from the respective products that is available for recovering the fixed cost.

(ii) Profit /Loss at 80% and 40% of the capacity and the contribution available from the 3 products.

problem 2) Product X is Zero level item. Component Y is level 1 item. 2 units of Y are needed in X. X has a lead time of 2 weeks. Y has a lead time of 1 week. Y is purchased in order quantity of 600 units. At the beginning of week 1 of the current schedule, 600 units of Y are scheduled to be received. Also 150 units of Y are available at the beginning of week 1.60 units are used as safety stock for Y. The independent demand for X and Y are as shown for the 6 weeks. Show the MRP working for the component Y in the current schedule.

Week                    1           2            3             4             5          6
Product X              -            -          150         200            -       250
Component Y         80       80          50           50          100        80

b) Name and describe main factors affecting product development and design.

problem 3)a) A Product needs processing through three work centres namely A, B and C in succession whose system efficiencies are 90%, 80% and 85% respectively. Determine the required system capacities of the three work centres if the desired output is 2000 units.

b) Use longest work element time rule to balance the assembly line described in the following table so that it will produce 40 units per hour

i) What is the cycle time?

ii) What is the theoretical minimum number of work stations?

iii) Which work elements are assigned to each work stations?

d) What are the resulting efficiency and balance delay percentages?

Work Element (task)                      Time ( secs)            Immediate Predecessor (s)
A                                                             40                         -
B                                                             80                         A
C                                                             30                         A
D                                                             25                         B
E                                                              20                         C
F                                                              15                         B
G                                                              60                         B
H                                                              45                         D
I                                                               10                       E, G
J                                                               75                          F
K                                                               15                     H, I , J
                                                                Total : 415

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