|Total No. of Questions — 7]||[Total No. of Printed Pages — 8|
|Time Allowed : 3 Hours||Maximum Marks : 100|
|Answers to questions are to be given only in English except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, his answers in Hindi will not be valued.|
|Q.No. 1 is compulsory.|
|Attempt any five questions from the remaining six questions.|
|Working notes should part of the answer.|
|1.||(a)||A potato chips manufacturing company decided that the mean net weight per pack of its product must be 90 grams. A random sample of 16 packets yields a mean weight of 80 grams with standard deviation of 17.10 grams. Test the hypothesis that the mean of the whole universe is less than 90, use level of significance of (a) 0.05 (b) 0.01.||5||(0)|
|(b)||What are the steps involved in Zero–base budgeting ?||5||(0)|
|(c)||G Ltd. produces and sells 95000 units of ‘X’ in a year at its 80% production 5 capacity. The selling price of product is Rs. 8 per unit. The variable cost is 75% of sales price per unit. The fixed cost is Rs. 3,50,000. The company is continuously incurring losses and management plans to shut-down the plant. The fixed cost is expected to be reduced to Rs. 1,30,000. Additional costs of plant shut–down are expected at Rs. 15,000. |
Should the plant be shut–down ? What is the capacity level of production of shut-down point ?
|(d)|| H Ltd. manufactures three products. The material cost, selling price and bottleneck resource details per unit are as follows : |
Budgeted factory costs for the period are Rs. 2,21,600. The bottleneck resources time available is 75120 minutes per period.
|2.||(a)|| E Ltd. manufactures and sells four types of products under the brand names A, B, C and D. On a turnover of Rs. 30 crores in 2009, company earned a profit of 10% before interest and depreciation which are fixed. The details of product mix and other information are as follows : |
Interest and depreciation amounted to Rs. 225 lakhs and Rs. 115.50 lakhs respectively. Due to increase in prices in the international market, the company anticipates that the cost of raw materials which are imported will increase by 10% during 2010. The company has been able to secure a license for the import of raw materials of a value of Rs. 1,535 lakhs at 2010 prices. In order to counteract the increase in costs of raw materials, the company is contemplating to revise its product mix. The market survey report indicates that the sales potential of each of the products : ‘A’, ‘B’ and ‘C’ can be increased upto 30% of total sales value of 2009. There was no inventory of finished goods or work in progress in both the year.
You are required to :
Set an optimal product mix for 2010 and find the profitability.
|(b)||List out the remedies available for difficulties experienced during implementation of PRAISE.||4||(0)|
|3.||(a)|| A company is engaged in manufacturing of several products. The following data have been obtained from the record of a machine shop for an average month : |
|(b)||A firm makes two products X and Y, and has a total production capacity of 16 tonnes per day. X and Y are requiring the same production capacity. The firm has a permanent contract to supply at least 3 tonnes of X and 6 tonnes of Y per day to another company. Each tonne of X require 14 machine hours of production time and each tonne of Y requires 20 machine hours of production time. The daily maximum possible number of machine hours is 280. All the firm’s output can be sold, and the profit made is Rs. 20 per tonne of X and Rs. 25 per tonne of Y. |
Formulate a linear programme to determine the production schedule for maximum profit by using graphical approach and calculate the optimal product mix and profit.
|4.||Attempt any four|
|(a)|| The following information is given by Z Ltd.: |
Calculate Profit, P/V Ratio, BEP Sales (in Rs.) and Fixed Cost.
|(b)||Explain the major components of balanced score card.||4||(0)|
|(c)||List the 5 steps involved in the methodology of critical path analysis.||4||(0)|
|(d)|| Calculate the selling price per unit to earn a return of 12% net on capital employed (net of tax @ 40%). The cost of production and sales of 80000 units are : |
The fixed portion of capital employed is Rs.12 lakhs and the varying portion is 50% of sales turnover.
|(e)||What are the steps involved in carrying out Monte Carlo Simulation model ?||4||(0)|
|5.||(a)|| Fruitolay has decided to increase the size of the store. It wants the information about the probability of the individual product lines : Lemon, grapes and papaya. It provides the following data for the 2009 for each product line : |
Fruitolay also provides the following information for the year 2009:
|(b)||Discuss various forecasting methods using time series.||5||(0)|
|6.||(a)|| A company has three plants located at A, B and C. The production of these plants is absorbed by four distribution centres located at X, Y, W and Z. The transportation cost per unit has been shown in small cells in the following table: |
Find the optimum solution of the transportation problem by applying Vogel’s Approximation Method.
|(b)||Mention the data required to operate the material requirement planning system.||4||(0)|
|(c)||“Customer profile is important in charging cost.” Explain this statement in the light of customer costing in service sector.||4||(0)|
|7.||(a)|| A company has two divisions : Division A and Division B. Both divisions of the company manufacture the same product but located at two different places. The annual output of division A is 6000 tons (at 80% capacity) and that of division B is 7500 tqns (at 60% capacity). The basic raw material required for production is available locally at both the places, but at division A, it is limited to 4000 tons per annum at the rate of Rs.100 per ton, at division B, it is limited to 8000 tons per annum at the rate of Rs.110 per ton. Any additional requirement of material will have to be purchased at a rate of Rs.125 per ton from other markets at either of division. Variable costs per ton at each division remain constant. For every 1000 tons of output, 800 tons raw material is required. The details of other costs of the divisions are as follows : |
|(b)||Explain distinctive features of learning curve theory in manufacturing environment.||4||(0)|