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This DMPS Part B exam simulation covers two main areas: assembly line balancing and inventory management. The assembly line design section requires applying two distinct methods (Max N followers/MaxDur and MaxDur/Max N followers criteria) to determine the optimal number of stations, assign tasks, and evaluate efficiency based on a 10-minute cycle time and a 90% saturation rate. The inventory management section involves analyzing two suppliers for a product, calculating EOQ, average inventory, and total ordering costs for a fixed-quantity model, as well as safety stock and holding costs for a fixed-time period model, ultimately determining the best supplier based on total cost optimization.
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- DMPS Part B Exam Simulation:
- Comprises 2 exercises, weighing 1/3 of the total exam.
- Time limit: 40 minutes.
- Penalty for wrong answers; no penalty for selecting 'I don't know'.
- Exercise 1: Assembly Line Design:
- Based on a provided assembly graph and operation times.
- Cycle Time (CT) = 10 minutes.
- Maximum saturation rate allowed = 90% (interpreted as a maximum station time of 9 minutes).
- Method 1:
- Criterion: Max N followers; Sub-criterion: MaxDur; Approach: task-oriented.
- Calculations involve determining the number of stations, task assignments for the first two stations (A and B), and overall efficiency.
- Calculated results: 5 stations, 86% efficiency.
- Method 2:
- Criterion: MaxDur; Sub-criterion: Max N followers; Approach: station-oriented.
- Calculations involve determining the number of stations, task assignments for the first two stations (A and B), and overall efficiency.
- Calculated results: 5 stations, 86% efficiency.
- Exercise 2: Inventory Management:
- Compares two suppliers (A and B) for product 'Ruffle'.
- Common data: Purchasing cost (1,200 €/UL), order issuing costs (500 €/order for admin, 270 €/order for delivery notes), working days (231/year), stock holding expenses rate (11%), loan burden (7%), bond yield (4%), and demand characteristics (Avg 30 UL/month, CV=0.1).
- Service level: 97.5% non-occurrence of stock-out (Z-score = 1.96).
- Supplier 1 (Q, ROP Model):
- Lead time = 6 days, std dev lead time = 3 days.
- Calculations include Economic Order Quantity (EOQ), average inventory level (including safety stock), and total annual cost of order issuing.
- Key assumptions for calculations (to align with typical exam answers): Order issuing cost (C_O) = 270 €/order; Holding cost rate (h) = 11% (physical) + 4% (opportunity cost) = 15%.
- Calculated values: EOQ approx. 32 UL, Average Inventory Level approx. 26 UL, Total Order Issuing Cost approx. 2958 €/y.
- Supplier 2 (Fixed-Time Period Model):
- Review period = 12 days, delivery time = 5 days, std dev delivery time = 0.5 days.
- Calculations include safety stock and total annual stock holding cost.
- Calculated values: Safety Stock approx. 5.3 UL (rounded to 6 in options), Stock Holding Cost approx. 2635 €/y.
- Best Supplier Decision:
- Comparative assessment of total costs for both suppliers to identify the more economical option.
- Calculated result: Supplier A is slightly more cost-effective.
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