Saveetha Engineering College

Department of Management Studies

BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


NETWORKING MODELS

Using PERT/ CPM solution technique, determine the slack times for the following precedence
network (duration are in days). Identify the activities that are on the critical path.













Aim :

To determine the slack times of the precedence network and to identify the activities that are on
the critical path..

Application Used :
Ms Excel





4
5
End
0
Start
0


2
9
1
4
3
2

6
6
5
3

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Procedure :

Find the Earliest Start, Earliest Finish, Latest Start and Latest Finish of the task.
Based on that slack time would be determined.
Technique Used: CPM
In the spreadsheet, format the cells with the legends as such below:
ES, EF , Name of the task (as 1,2,,6), LF (EF+ duration), LS (ES+ duration) and slack (LF-EF
or LS-ES). The slack which will be zero is on critical path.



Start with the start node as zero. Type the duration and ES as zero.
EF cell =ES +Dur
Copy the calculation for the duration and EF and copy it in other nodes.

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Type the values of ES and duration in other nodes too.
In task number 5, ES=Max(EF of task4 and task 3)
In End task , ES=Max(EF of task6 and task 5)



Through this, we can understand that the project is going to be 17 days long from beginning to
end.
Now, we should determine the critical path.
We should work backwards.
Copy LF =EF in End node.
LS= LF-Duration
Slack= LF-EF

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Copy the equations in LS, Slack and paste in other nodes.


In node 6, LF is the same as ES of the end node.
At task 5, LF is equal to the ES of the downstream node that is the end node.
In task 5, we determine that there is no slack (0). It is a critical path task.
When we are in task one and start, calculate the minimum of the downstream line.







Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


Output:



Result :

The critical path is Start 2 4 5 End.

The duration of the project is 17 days.






Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


The PERT problems can also be programmed as templates to find the slack, Critical path etc.
With the change in inputs of Start node, End node and the time estimates of these nodes, changes
in ES, EF,LF, LS and slack can be computed easily as below:












Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:













Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

For the Crashing problem, with the given inputs, by the press of Solve button, solution for the
project completion time as 20 days is obtained as below:


The least cost activity is C.









Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


By resolving through crashing, we get



Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:



Result:
Optimum minimum cost is achieved by crashing the time for this project.

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


Inventory Models
An aircraft company uses rivets at an approximate customer rate of 2500 kg/year. Each unit
costs Rs.30 per kg and the company personnel estimate that it costs Rs.130 to place an order, and
that the carrying cost of inventory is 10% per year.
(i). Determine the optimum size of each order.
(ii). How frequently should orders for rivets be placed?

Aim:
To determine the optimum size of each order and the frequency of orders for rivets.
Application Used :
Ms Excel

Procedure:
Open Microsoft Excel.
Give the inputs such as the demand (D), Ordering cost (Co) and Unit cost.
Carrying cost is 10% per year.
That equals to (=10/100*Unit cost)
(i). EOQ =SQRT(2*Co*D/Cc)

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Press Enter.
(ii). Number of orders per year = D/EOQ
Press Enter.

Output:



Result:
(i). The optimum size of each order is 465 Units
(ii). Frequency of orders for rivets is 5.37 Orders/ Year.



Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


A production department requires 3600 kg of raw material for manufacturing a particular item
per year. The cost of placing an order is Rs.36 and the cost of carrying inventory is 25% of the
investment in inventories. The price is Rs.10 per kg. Determine the ordering policy for the raw
material.

Aim:
To determine the ordering policy for the raw material.
Application Used :
Ms Excel

Procedure:
Open Microsoft Excel.
Give the inputs such as the demand (D), Ordering cost (Co) and Unit cost.
Carrying cost is 10% per year.
That equals to (=10/100*Unit cost)
(i). EOQ =SQRT(2*Co*D/Cc)
Press Enter.
(ii). Number of orders per year = D/EOQ
Press Enter.

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

(iii). Time between orders = EOQ/D
Press Enter.
To convert it into days, multiply with 365.
Output:



Result:
(i). The optimum size of each order is 322 Units
(ii). Frequency of orders 11.18 Orders/ Year.
(iii). Time between orders is 33 Days.


Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Inventory problems can also be solved by using the inventory model templates.




Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:




Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:





Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:





Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:





Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:















Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Queuing Theory
Erlang model )M/M/1): (/FIFO)
The arrival rate of customers at a banking counter follows Poisson distribution with a mean of 45
per hour. The service rate of the counter clerk also follows Poisson distribution with a mean of
60 per hour.
(i). Find Ls, Lq, Ws,Wq.
(ii). What is the probability of having 0 customers in the system?

Aim:
To find Ls, Lq, Ws,Wq and the probability of having 0 customers in the system.
Application Used :
Ms Excel
Tool used:
Queue Macros.

Procedure:
Open Queue Macros.
Choose the worksheet M-M-1.
Give the inputs such as the arrival rate and service rate.





Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


Output:



Result:
(i). Ls = 3 customers
Lq = 2.25 customers
Ws = .067 hour
Wq = .05 hour
(ii). Probability of having 0 customers in the system (Po) = 25%



Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

In a railway yard, goods train arrive at a rate of 30 trains per day. Assuming that inter arrival
time follows an exponential distribution and the service time distribution is also exponential,
with an average of 36 minutes. Calculate the following:
(i). The mean queue size
(ii). The probability that the queue size exceeds 10
(iii). If the input of the train increases to an average 33 per day, what will be the changes in (i)
and (ii)?

Aim:
To find the mean queue size and the probability that the queue size exceeds 10.
.
Application Used :
Ms Excel
Tool used:
Queue Macros.

Procedure:
Open Queue Macros.
Choose the worksheet M-M-1.
Give the inputs such as the arrival rate and service rate.
Type .75 in a cell (probability )
Select formulas.

Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:

Insert function
Select the function power
In function arguments, specify the number as .75 and power as 10.
Give O.K.










Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


Output:



Result:
(i). Lq = 2.25 Trains

(ii). The probability that the queue size exceeds 10 is .056.





Saveetha Engineering College

Department of Management Studies
BA7211 Data Analysis and
Business Modeling
Ex. No: Date:


(iii). If the input of the train increases to an average 33 per day, what will be the changes in (i)
and (ii)?
Output



Result:

If the input of the train increases to an average 33 per day,
(i). Lq = 3.89 Trains

(ii). The probability that the queue size exceeds 10 is .146