Q1.

Item
P565
X43
Y36
N78
J27

Requirement

Net
Lead Time
On Hand qty Requirement (Weeks)

180

180

660

60

600

360

200

160

180

180

640

640

MRP for Completing 180 units of P565 (Planning as per net req
Week
1
P565
X43
Y36
N78
J27

Required Date
Order Placement
Required Date
Order Placement
Required Date
Order Placement
Required Date
Order Placement
Required Date
Order Placement

180
120

480
480

120
160
160
180
180
640

640

ning as per net requirements)

6
180

10

D=
P=
S=
H=
EOQ =
EOQ =
Q2.1
Q2.2

3400
3
100
17%

D*P + (D/Q)*S + (Q/2)*H

0.51

1154.701 for price = 3/kg

1414.214 for price = 2/kg
EOQ =
EOQ =

Total Cost =

Total Cost
Total Cost

10788.89727
10680.83261

1414.213562 for price = 2/kg

Total Cost
1154.700538 for price = 3/kg
Total Cost

10680.83
10788.9

UTL
LTL
Q5.1
Xbar
Cpk

45
30
38 SD
0.777778

Q5.1
Xbar
Cpk

37 SD
0.933333

2.5

Q5.1
Xbar
Cpk

37.5 SD
1.388889 Most capable

1.8

Sample No

No. of errors
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Control limit
Z=

Pbar
SD
UCLp
LCLp

5
3
5
7
4
6
8
4
5
9
3
4
5
6
6
7

Fraction defectives
0.05
0.03
0.05
0.07
0.04
0.06
0.08
0.04
0.05
0.09
0.03
0.04
0.05
0.06
0.06
0.07

UCLp
LCLp
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402
0.122402

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0.14
0.12
0.1
0.08
0.06
0.04
0.02
0

99.73%
3

0.054375
0.022675617
Pbar + z*SD
Pbar - z*SD

0.12240185
-0.01365185 should be zero because percentage defectives can't be negative
0

P-chart to be drawn as this is no. of defectives (attribute case) given

0.14
0.12
0.1
0.08

Fraction defectives
UCLp

0.06

LCLp
0.04
0.02
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Process is clearly under control

efectives can't be negative

Quantity
In ltr
From

Unit Price
Rs/ltr
to
1
399
400
799
800 onwards

2
1.7
1.62

EOQ

300

ROP

43.13419 litre

TC
TC1
TC2

10029.4
Data used for What
8679.403
if analysis only
8319.403

D`
L
SD
S=
H
Consumption per day
Risk level
CSL
Z
Safety level

4500
3
2
30
3
12.5
1.50%
98.500%
2.17009
5.634192

ltr
days
ltr/day
Rs per order
Rs per year
ltr

10029.4
300 10029.4
350 10040.12
399 10066.25

Optimum order qty

400 ltr

400
450
500
550
600
650
700
750
799

8679.403
8716.903
8754.403
8799.403
8849.857
8904.403
8962.095
9022.26
9084.403
9146.864

800
850
900
950

8319.403
8788.153
8853.226
8919.403
8986.508

Day

No. of retests
1
2
3
4
5
6
7
8
9
10
11
12
13

1
2
2
0
2
1
2
0
2
7
3
2
1

Fraction defectives
0.005
0.01
0.01
0
0.01
0.005
0.01
0
0.01
0.035
0.015
0.01
0.005

UCLp
LCLp
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416
0.023416

0
0
0
0
0
0
0
0
0
0
0
0
0

P-chart to be drawn as

0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005

Pbar
SD
UCLp
LCLp

0.009615385
0.006900337
0.023416058
-0.004185289

Process is under control exc

P-chart to be drawn as this is no. of defectives (attribute case) given

Fraction defectives
UCLp
LCLp

9 10 11 12 13

Process is under control except 10th day

Demand for year

Production per day
No. of days
Demand/day
Setup cost
Holding cost
Q1.
EPQ=

D
p

20000
200
250
80
300
10

d
S
H

sqrt(((2*D*S)/H)/((p-d)/p))

Q2.
Length of Production run =

EPQ/p

1414.214

7.071068 days (t)

Q3.
Rate of inventory build up during production (Average Inventory) =

1/2*(p-d)*t

424.2641

Q4.
Inventory after each production run =
EPQ - d*t 848.5281
Days the inventory will last =
10.6066
Hence we can't produce another product with production cycle = 10 days
Because, the setup time is 1 day, hence if we schedule this product then the interval between two production run will becom
But our inventory will not last till that time and there will be stockout

two production run will become = 10+1+1 = 12 days