Question

1) Queuing: a) Where would you apply some of this knowledge? b) Provide a quick setup with all the variables of the application you chose

2) Inventory Management:  a) Where would you apply some of this knowledge? b) Provide a quick setup with all the variables of the application you chose

3) Linear Programming:  a) Where would you apply some of this knowledge? b) Provide a quick setup with all the variables of the application you chose

Answer 1

Let us first understand the meaning of queuing theory

Queuing theory actually is a branch of operations research

Whose outcomes  are used for making final decisions about the resources needed to provide service.

Applications:

There are so many  applications of the queuing theory are traffic flow (aircraft, Telecommunications),Sequence of computer order determination ,Computer performance prediction,health services ,airport traffic,manufacturing system layout

It has been mainly applied for production and analysis of systems and operation research

For highway systems, comparatively little difference between travel time at capacity and travel time under free flow conditions.normally delay analysis focuses on delay which results during demand go beyond its capacity is known as queuing delay, and it may be studied by means of queuing theory

It is waiting lines mathematics and extremely used to predict and evaluate system performance.

in the any traffic system where analysis is being done known as  the delay analysis

There are some key variables associated with queuing analysis are given as below:

Interarrival time (time between two successive arrivals)

Service time per job

Mean arrival rate

Number of servers

Mean service rate per server

Arrival characteristics:

Population size.

Arrival behavior.

Arrival statistical distribution

Structure of queue:

FIFO-First in First Out

First come First serve

Last Come first serve

Service in random order

Priority service

2)

Inventory management:

meaning of inventory is "stock of goods"

In accounting language it may have

1)Raw material :required to carry out production activities

2)Work in progress(WIP):intermediate stage of stocks between raw material and finished goods

3)Consumables:needed to smoothen the process of production

4)Finished Goods:ready for consumers

5)Spares: form a part of inventory

Key variables in inventory:

FIFO(First in First Out)

LIFO(Last in First Out)

Average price method

Base Stock

Standard price and market price

Inventory turnover ratio=Cost of good sales*average inventory at cost

Delivery lead time is that period that elapses between recognition of need and and its fullfillment

JIT(just in time)

VED analysis used for spare parts whose meaning Vital(V),Essential(E) and Desirable(D)

ABC analysis:Material is divided into three cateogries

A:10% item contribute to 70% value of consumption

B:20% items contribute to about 20% value of consupmtion

C:70% items contribute only 10% value of consumption

EQQ(Economic order quantity):Size of lot to be purchased which is econmically viable

Ordering cost :Cost associated with ordering and purchasing of materials

Carrying Cost:Cost for holding the inventories

Determination of stock level

Safety Stocks

Application of inventory management:

1)

Forecasting is important  application of inventory management, as approximately correct forecasting should be done to maintain the optimum level of inventory best suited for the company

The JIT (Just in Time) inventory system is used in almost every industry (manufacturing/chemical/automotive/software)

and major corporations because it provides a more efficient use of working

Kanban(Visual card represenation)  is part of inventor management used in very small medium and big industries

It is applied in computerized inventory control system

It is used in beverage and food industry

There is example of  Burger King, where all the necessary ingredients for preparing hamburgers, such as meat, buns and condiments, are kept on hand, but the actual hamburgers are only prepared when a customer places an order.

This contrasts with an inventory system that has pre-made sandwiches had already already prepared for sales

3)

Linear programming:It is word linear means relationship which can be represented by straight line relation in the form

It is used to describe the relationship between two or more variables which are proportional to each other

Word programming meaning is the Optimal allocation of limited resources

It is mathematical method of determining a way to achieve the best outcome

Key variables :

Well defined objective function

Constraints

Decisions variables should be interrelated and non negative

Resources must be limited to suppy

Slack variable

Surplus variable

Artificial variable

Application of Linear programming:

Business

Industrial (Product mix problems,Blending problems,Assembly line balancing,Production schedulling problems)

Military

Economic

Marketing

Distribution

Management application(portfolio selection problem,profit planning problems,Transportation problems)

Miscellanios applications:

Agricultral problems,Diet problems,Flight scheduling problems,Facilities location problems