**18**answerable questions with

**0**answered.

I–9(MPM)Revised Syllabus | |

Time Allowed : 3 Hours | Full Marks : 100 |

Answer Question No. 1 which is compulsoryand another five questions from the rest. | |

Marks | |

1. | (a) | A manufacturer of biscuits is considering manufacture of 4 types of gift packs containing 3 types of biscuits–orange cream (OC). chocolate cream (CC) and waters (W). Market research conducted recently to assess the preference of consumers shows the following types of assortments to be in good demand:
You are required only to formulate a LP model to find the production schedule which would maximise the profit, assuming that there are no market restrictions. You are not required to solve the LPP. | 10 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | The variable cost structure of M/S XYZ & Co. is as follows:
Sales and fixed overhead during the current year are expected to be Rs. 13,50,000 and Rs. 1,40,000 respectively. Under a new wage agreement, an increase of 10% In wage is payable to all the direct workers from the beginning of the forthcoming year, while the materials cost, variable overhead and fixed overhead are expected to increase by 7.5%, 5% and 3% respectively
| 5+5 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

2. | (a) | A company has 4 factories F_{1, }F_{2, }F_{3,} and F_{4} manufacturing the same product. Production and raw material costs differ from factory to factory and are given in the table below in the first two rows. The transportation costs from the factories to the sales depot S_{1} S_{2,} and S_{3} are also given. The last two columns in the table below give the sales price and total requirement at each depot and the production capacity of each factory is given in the last row.
Determine the optimal solution and the associated profit by using the Vogel’s Approximation Method (VAM). | 10 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | A repairman is to be hired by a company to repair machines that breakdown at an average rate of 3/hour. Breakdown occurs randomly (Poisson distribution) over time. Non–productive time on any machine is considered to cost the company Rs. 10 per hour. The management has narrowed down the choice to 2 repairment; one ‘slow but cheap’ and other ‘fast but expensive’. The ‘slow but cheap’ repairmen has a rate of Rs. 5 per hour and he will service breakdown machines at an average rate of 4/hour. The ‘fast but expensive’ repairman has a rate of Rs. 7 per hour and he will service breakdown machines at an average rate of 6/hour. Which repairman should the company hire? Assume exponential repair time for both repairmen. | 6 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

3. | (a) | Shree Lakshmi Finance Corporation is an investment company. The Management of the company wants to study the investment in a project based on the following three factors. 1. Market demand
The following random numbers are to be used:
| 10 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | The cost of an article at the capacity level of 10,000 units is given under 'A' below. For a variation in capacity above or below this level, the individual expenses vary as indicated in 'B' below.
Find out the unit cost of product, showing each individual expenses, at the production levels of 8,000 units and 12,000 units respectively. | 6 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

4. | (a) | Explain the concept of Just–In–Time (JIT) Manufacturing system, highlighting its features and conditions necessary for its success. | 8 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | After observing heavy congestion of customers over a period of time in a petrol station, Mr. Petro has decided to set up a petrol pump facility on his own in a nearby site. He has compiled statistics relating to the potential customer arrival pattern and service pattern as given below. He has also decided to evaluate the operations by using the simulation technique.
| 4+4 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

5. | (a) | Budget
here was a special holiday in January, 2002. Work out the Fixed Overhead Variances. | 1Â½x6 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | What do you understand by the term ‘Investigation of Variances’? A manager has just received the Direct Labour Efficiency Variance Report which shows Rs. 10,000 adverse efficiency variance. The following estimates in investigation of variances are provided.
The manager remained in different about conducting and investigation where there was a probability of 0.60 that the process was in control. | 5+2 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

6. | (a) | What do you mean by 'transfer price'? State the objectives of "transfer price". | 1+3 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | A company has two divisions A and B. Division A transfers 500 units of X – 25 to able to sell X – 25 in the open market, in case of refusal of Division B to buy them. Division B incurs additional variable costs of Rs. 39 per unit of X – 25 and produces X – 30 which it sells in the market at Rs. 90 per unit. Both the divisions have surplus production capacity. Division B can sell 7,200 units of X – 30, If it reduces the selling price to Rs. 80 per unit. The manager of Division B has proposed to reduce the transfer price of X – 25 to Rs. 12 per unit. Find out the contributions of the divisions and of the company at the —
| 6+6 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

7. | (a) | Define 'Residual Income' and state its disadvantages in Divisional Performance Appraisal. | 2+4 | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Division Y of C Ltd. has employed Rs. 1,00,000 and earned an annual profit (after depreciation) of Rs. 18,000. The divisional manager is considering an investment of Rs. 10,000 in an asset which will have a ten–year life with no residual value and will earn a constant annual profit (after depreciation) of Rs. 1,000. The cost of capital is 15%. Work out
Also comment on the results. | 6+4 | (0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||

8. | Write short notes on the following:- | 4x4=16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||

(a) | Material Requirement Planning | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||

(b) | Value analysis | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||

(c) | Benchmarking | (0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||

(d) | Activity based budgeting. | (0) |