Capacity Planning, Scheduling, Project and Supply Chain Management — Practice

Question 1

What is the formula for capacity utilisation?

Accepted Answer

Capacity Utilisation = Actual Output / Design Capacity.

Question 2

What does a zero float on a project activity indicate?

Accepted Answer

That the activity lies on the critical path, and any delay to it delays the whole project.

Question 3

In the EOQ formula, what does the letter C represent?

Accepted Answer

Carrying cost per unit per year.

Question 4

Annual demand for a part is 3,200 units, ordering cost is Rs. 50 per order, and carrying cost is Rs. 4 per unit per year. Find the EOQ.

Accepted Answer

EOQ = sqrt((2 x 3200 x 50) / 4) = sqrt(80,000) = ~283 units.

Question 5

An activity has optimistic time 2 days, most likely time 5 days, pessimistic time 8 days. Find its PERT expected time.

Accepted Answer

Expected Time = (2 + 4x5 + 8) / 6 = (2 + 20 + 8) / 6 = 30 / 6 = 5 days.

Question 6

Two jobs must pass through Machine 1 then Machine 2. Job P: M1=6, M2=3. Job Q: M1=2, M2=9. Find the optimal sequence using Johnson's rule.

Accepted Answer

Smallest time overall is Job Q's Machine 1 time (2 hours), so Q is scheduled first. Sequence: Q then P.

Question 7

Explain the difference between a lead strategy and a lag strategy for capacity expansion, and the risk each one accepts.

Accepted Answer

A lead strategy adds capacity ahead of expected demand growth, risking idle capacity and its carrying cost if demand does not materialise as forecast, but capturing sales a slower competitor would miss. A lag strategy adds capacity only after demand has clearly materialised, avoiding idle capacity but risking lost sales during the period of shortfall before new capacity comes online.

Question 8

Explain why Just-In-Time (JIT) inventory management depends heavily on reliable suppliers, using the EOQ trade-off as part of your answer.

Accepted Answer

JIT pushes order size and buffer inventory close to zero, procuring materials to arrive exactly when needed rather than holding safety stock. Under the ordinary EOQ trade-off, smaller and more frequent orders raise total ordering cost, which JIT accepts only because it aims to eliminate carrying cost almost entirely; but with no safety stock cushion, any supplier delay or quality failure immediately stops production, which is why JIT is workable only with highly reliable suppliers and short, dependable lead times.

Practice — Capacity Planning, Scheduling, Project and Supply Chain Management

Sign in to save attempts to your dashboard and track your accuracy over time

Find a verified tutor

Join a live course

Browse coaching centres

About

Categories

Support

Documentation

Get Study Tips & Updates

Download Our App

Download for iOS

Download for Android

Popular Cities