• Annual demand of the item is 1000 units, ordering cost is Rs.10/- per order and inventory carrying cost is 30% per year. Price per unit is Re.0.50/- Lead time is two years. Determine the optimal order quantity and Re Order Level (Oct‟03)


  • For a normally distributed lead time demand, the expected demand during lead time is 80 units and standard diviation of demand during leadtime is 10 units. If it is decided to have 95% level of customer service, and then find the reorder level. (Oct‟04)


  • A company wants reduce its current inventory at 16 warehouses locations from 8000 units to 4000 units using square root law. Find the required number of warehouses. (May‟05)


  • In a central grain store, it takes 15 days to get stock after placing an order and daily 500 tons are dispatched to neighboring markets. On an ad hoc basis safety stock is assumed to be 10 days stock. Calculate the Re Order Point. (May‟04)


  • A tractor manufacturing company has calculated that 16 spare engines will result into a stock out risk of 25% while 20 will reduce the risk to 15% and 24 to 10%. The lead time is three months and average usage is six engines per month. What should be the Re Order Level (ROL) to maintain 85% service level. (May‟03)


  • The average yearly consumption for an item is 3600 units and the normal lead time is one month. If the maximum consumption has been up to 4800 units per year and the maximum lead time is two months, what should be the buffer stock of the item? (Oct ‟02)




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