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• In part (a), we solved the assignment problem using the Hungarian Method and
found the optimal assignment with minimum cost = 195.
• In part (b), we explained Initial Feasible Solution (the starting allocation that
satisfies constraints) and Unbalanced Transportation Problem (where supply ≠
demand, requiring dummy adjustments).
• Together, these concepts show how optimization techniques provide efficient,
practical solutions in operations research.
SECTION–C
5. Discuss meaning and types of inventory. Also, discuss Economic lot size models with
example.
Ans: Meaning and Types of Inventory
Imagine you run a small shop. To keep your business running smoothly, you must always
have enough goods to sell—but not too much that they remain unsold and waste space or
money. This balance is what inventory management is all about.
Inventory refers to all the goods, materials, or resources that a business keeps in stock for
future use or sale. It is one of the most important assets of any business because it directly
affects production, sales, and profit.
In simple words, inventory = items a business keeps to meet future demand.
Types of Inventory
Inventory can be classified into different types based on its role in the production or sales
process:
1. Raw Materials
These are the basic materials used to produce goods.
Example: Cotton for making clothes, wood for furniture.
2. Work-in-Progress (WIP)
These are partially finished goods that are still under production.
Example: Half-stitched shirts in a garment factory.
3. Finished Goods
These are completed products ready for sale to customers.
Example: Packed biscuits in a shop.