Production Planning and Control (MEFB433) Second Sem. 2014-2015

Test 02 (21-Jan-2015) Submission Deadline: 22-Jan-2015 before 5 pm.

Name: Student Number:

QUESTION 1 [30 marks]

A restaurant prepares 350 chicken sandwiches each week. Holding cost and ordering cost of the sandwich bread

are $15 per bread per annual and $120 per order per annual respectively. The restaurant operates 280 days per

year.

(a) Calculate the optimal order size. [15 marks]

(b) If the company reorders when they have 40 breads left, what is the lead time? [15 marks]

QUESTION 2 [35 marks]

The activities of a research project are illustrated in Figure 1. If the probability of the project being completed in

more then 15 days is 44.2%, then calculate the optimistic time of the activity 2-3.

Figure 1.

QUESTION 3 [35 marks]

One of the important parts of the line balancing process is breaking a tie when two or more activities have the

same priority for assignment. We have studied some of these heuristic tie brakers such as assigning the tasks in

order of the most following tasks, assinging task with the highest task time and assinging task with the lowest

number of precedences. Based on your own judgment, propose a new rule for braking a tie in line balancing.

Explain the rationale, advantages and drawbacks of your proposal.