# supply chain management

Question 1
This question concerns the use of queuing theory in the supply chain. (a) Provide a simple explanation using diagrams of a single server, multiple servers, and multiple single server queuing systems. [2 marks] (b) Explain what is meant by a Poisson arrival pattern and an Exponential service pattern in relation to the supply chain – give examples. [4 marks] (c) Explain what is an M/M/1 queue, and an M/D/2 queue. [4 marks] (d) A warehouse security controller is dealing with cargo vehicles arriving for loading. The vehicle arrival times follow a Poisson distribution with an arrival rate of λ=0.75 vehicles/5 minutes. The distribution of the controller’s service follows an Exponential distribution with an average service time of 1/µ=1.079 minutes per vehicle. You have been asked by the director of the warehouse to calculate: The utilisation factor of the security controller The probability that there are no vehicles queuing Average time a vehicle spends waiting in the queue Average time a vehicle spends waiting in the queue and being processed by the security controller. Average number of vehicles waiting in the queue The probability that there are ‘n’ vehicles in the system (queuing or being processed) – you need only provide an expression for this. [10 marks] Question 2 This question concerns Ordering. (a) Define Economic Order Quantity (EOQ) and Economic Production Quantity. [2 marks] (b) Study the two-inventory cycle representations in Figure 2.1. 1. The first shows a theoretical profile; describe the operating level, the safety level, the procurement cycle, the procurement lead time, and the procurement level and safety stock. 2. The second is a representation of an actual inventory cycle, comment on the differences between the two profiles. [5 marks]

Picture 1

(c) What are the important EOQ assumptions? [3 marks] (d) CalcCo is a manufacturer of calculators, currently producing 200 per week. One component for every calculator is a liquid crystal display (LCD), which the company purchases from LCDCo for £1 per LCD. CalcCo management wants to avoid any shortage of LCDs, since this would disrupt production, so LCDCo guarantees a delivery time of 0.5 weeks on each order. The placement of each order is estimated to require 1 hour of clerical time, with a direct cost of £15 per hour plus overhead costs of another £5 per hour. What should be the Economic Order Quantity (EOQ), the reorder point (assume no safety stock) and the TC? To ensure production continuity CalcCo determined that the standard deviation of the lead time demand is 20 LCDs. To ensure a 90% confidence of production continuity the company has decided to introduce a safety stock. What is this stock and re-calculate the order point (Z Tables are attached to this Question Paper)

Winner

## Maklum balas Majikan

“Been Academic and correct thanks ”

elhamt, United Kingdom.

## Papan Penjelasan Umum

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Done .

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Answers are not clear , there is no question number

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Perfect thanks

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1. ###### doctorkendrick20
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2. ###### doctorkendrick20
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• ###### doctorkendrick20
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