Scribd
Upload
6 views

MWR 01

Uploaded by

Gangadhar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
6 views

MWR 01

Uploaded by

Gangadhar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

No.

of Printed Pages : 5 MWR–01


POST GRADUATE CERTIFICATE IN
INVENTORY PLANNING AND
WAREHOUSING SYSTEM FOR
ENGINEERS (PGCIPWS)
Term-End Examination
December, 2023
MWR-01 : INTRODUCTION TO INVENTORY
PLANNING AND CONTROL

Time : 3 Hours Maximum Marks : 70

Note : (i) Attempt any seven questions out of ten


questions.

(ii) Each question carries 10 marks.

1. (a) Discuss the importance of inventory


planning and control in any engineering
firm. 8
(b) Describe the term ‘Cycle Stock’. 2
2. (a) Describe the relationship between carrying
cost and ordering cost. 5

P. T. O.
[2] MWR–01

(b) What are various elements (or components)


of carrying cost ? 5

3. (a) Describe the ‘Periodic order’ inventory


control system. 4
(b) A company is a supplier of speedometers to
Speed Auto Ltd. It supplies 20,000
speedometers to Speed Auto Ltd. annually.
Ordering cost per order is ` 5 and holding
cost is 2.5 percent of the unit price. The
price per unit of piece is ` 200. The
company has a policy of placing 10 orders
every year. Advise the management of
Speed Auto Ltd. to whether it should
continue with the present policy or switch
over to Economic Order Quality (EOQ)
model. 6

4. (a) Explain the ‘Gradual Replacement Model’


of inventory control system. 4
(a) On of leading bottler of a soft drink
manufacturing company in India. The
annual demand at soft drink manufacturer
is 200000 bottles. The carrying cost of the
inventory (bottle) is ` 10 per bottle per
year. The setup cost per bottling run is
[3] MWR–01

` 1,000. The rate of production is


1000 bottles per day and the rate of
demand is 600 bottles per day. Find the
optimum size of a bottling run, i.e., the
number of bottles that should be
manufactured in one production run. 6

5. (a) Describe the application of any one of the


inventory classification techniques in brief.
3
(b) Table 1 shows the details of ten items in a
factory : 7
Table 1
Item Id Unit Price No. of units
(`) per year
a 5 1000
b 10 10
c 7 5
d 750 100
e 5 2000
f 1 150
g 8 1500
h 6 10000
i 30 20
j 4 9000

Categorize above items into categories A, B


and C according to their usage values.

P. T. O.
[4] MWR–01

6. Exide batteries is offering discounted prices to


its retailers for the following quantities of car
batteries as shown in table 2. A retailer of the
company at Noida (U. P.) has an annual
demand of 2500 units. The carrying cost of
batteries estimated by the retailer according to
past experiences is 10 percent of the inventory
value (or unit price) and the ordering cost is
estimated as ` 100 per order : 10
Table 2
No. of Units Price (`/unit)
50 – 99 2000
100 – 149 1900
150 and above 1800

Determine the size of the order the retailer


should place with Exide batteries so that the
total inventory cost is minimum.

7. Compare and contrast between qualitative and


quantitative methods of demand forecasting. 10

8. (a) What do you understand by forecasting


error ? Describe any one technique of
calculating forecasting error. 4
[5] MWR–01

(b) Demand pattern of a certain item is shown


in the Table 3 : 6
Table 3
Year Demand (in units)
1 100
2 120
3 110
4 140
5 160

Use the exponential smoothing method


(first order) and calculate the demand
forecast for the year 6. Assume the value of
smoothing coefficient  = 0.8.
9. Discuss any one method from the given option
below for the costing of stock issued and
valuation of stock in hand : 10
(i) FIFO
(ii) LIFO
(iii) Mean average price method
10. (a) Describe the purpose of physical
verification of stocks. 4
(b) Outline the procedure for stock
verification. 6

MWR–01

P. T. O.

You might also like