PRPC – 28

Analysis of Production Systems

Submitted by
B.Vishanth Hari Raj
114117023
Prod A

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 Experiment – 1
Forecasting Model

Aim:
To solve the given problem using simple moving average method
Problem:
Shipments (in tons) of welded tube by an aluminium producer are shown
below:

Year 1 2 3 4 5 6 7 8 9 10 11
Tons 2 3 6 10 8 7 12 14 14 18 19

(a) Compute a 3-year moving average, plot it and use it to forecast shipments
in year 12.
(b) Using a weight of 3 for the most recent data, 2 for the next, and 1 for the
oldest, forecast shipments in year 12.

Input Data:
• No of years
• Weight of Aluminium for each year
• Moving Average Period (3)

Output Data:
• 3 year moving total
• 3 Year Moving Average

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Evaluated Excel:

3 Year Moving Average

15
Tons

10

0
0 2 4 6 8 10 12
Years

Shipment (tonns) 3 Year Moving Average

Result:
Using the Weight of 3 for the most recent data, 2 for the next, and 1 for the
oldest
Forecast shipment for year 12 = { (1)*(14) + (2)*(18) + (3)*(19) }/ { 1 + 2 + 3 }
= 105/6
= 17.5 tons
The table and the graph plotted between years and tons shows the three-year
moving average for the given data. Thus, the experiment was successfully
completed using OM Explorer

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 Experiment – 2
Inventory Model
Aim:
To find the safety stock, reorder point and cost of using the continuous
review system for the given inventory model using OM explorer.
Problem:
A community hospital in Southeast Ohio consumes 1,000 boxes of
bandages per week. The price of bandages is $35 per box, and the
hospital operates 52 weeks per year. The ordering cost is $15, and the
cost of holding one box is 15% of the price of the material. The lead
time to receive materials is 2 weeks. Demand is normally distributed,
with a standard deviation of weekly demand of 100 boxes. Find the
Economic Order Quantity (EOQ). What safety stock is necessary if the
hospital uses a continuous review system and a 97% cycle-service level is
desired? What is the reorder point? What is the cost of using the
continuous review system?

Input Data:
The following data are given as input:

1. Lead time
2. Cycle-Service Level
3. Demand per Week
4. Standard deviation of Demand/Week
5. Working weeks per year
6. Unit cost
7. % of Unit cost for holding cost
8. Order cost

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Output Data:
The following data are given as output:
1. Economic Order Quantity (EOQ)
2. Safety Stock
3. Reorder Point
4. Annual Cost

Evaluated Excel Sheet:

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Result:
The required safety stock, reorder point and cost of using the continuous
review system of the given inventory model were determined using OM
explorer.

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 Experiment – 3
Scheduling Case Studies

Aim:
To schedule n jobs among 2 machines to obtain optimally sequence with
minimum make span.
Problem:
Consider the following two machines and six jobs flow shop-scheduling
problem. Using Johnson’s algorithm, obtain the optimal sequence, which will
minimize the make span.
Operation Operation
Job 1 2
1 6 5
2 2 3
3 10 15
4 13 15
5 11 10
6 15 12

Input Data:
• No of Jobs
• No of Operations
• Time taken to complete job in each machine
Output Data:
• Optimal Sequence
• Starting and Finishing Time of each job
• Make span

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Evaluated Excel Sheet:

Result:
Thus, the obtain sequence is in order “ 2,3,4,6,5,1”. The minimum time takes
to complete all the jobs is 69.

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 Experiment – 4
Materials Requirement Planning
Aim:
To develop a material requirement plan from the Master Production
Schedule (MPS), Bill of Material (BOM) and inventory data using OM
explorer.
Problem:
Consider the master production schedule, bill of material, and inventory
data shown below. Complete the MPS and MRP explosions and develop
a requirement plan.

Lead time for A = 1 week

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Input Data:
The following are given as input data:
1. Master Production Schedule (MPS)
2. Bill of Material (BOM)
3. Inventory Data including Lot sizing rule, Lead time (in weeks),
Beginning (on-hand) inventory, Scheduled receipts
Output Data:
The following are obtained as output data:
1. Material Requirement Plan for every week
2. Gross requirement
3. Projected on-hand inventory
4. Planned receipts
5. Planned order releases
Evaluated Excel Sheet:

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Result:
Thus, Material Requirement Planning (MRP) was performed for
components A and B with the given data using OM explorer.

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 Experiment – 5
Project Management
Aim:
To determine the critical path, total project time, early start, early finish, late
start, late finish and total slack of each component for the given project
management model using OM explorer.
Problem:
Two international banks are integrating two financial processing software
systems as a result of their merger. Preliminary analysis and interviews with all
parties involved resulted in the following project information. All times are in
weeks. Identify the critical path, total project time, early start, early finish, late
start, late finish and total slack time of each activity in the given problem.

Input Data:
The following are given as input data:
1. Activities
2. Activity Predecessors
3. Normal time for each activity
Output Data:
The following are given as output data:
1. Total project time
2. Early start
3. Early finish

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 4. Late start
5. Late finish
6. Total activity slack
7. Gantt chart
8. Critical path

Evaluated Excel Sheet:

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Result:
Therefore, the early start, early finish, late start, late finish and total slack time
for each activity in the given project were calculated using OM explorer. The
critical path was found to be A-C-E-G-I with total project time of 25 weeks.

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