# BDA Problem Set By Prof.

Girish Phatak

**Second Topic Transportation Model Problems discussed in the class
**

Q.1 A dairy firm has their plants located in a state. The daily milk production at each plant is as follows: PLANT 1 2 3 MILK SUPPLY 6 1 10 Each day, the firm must fulfill the needs of its four distribution centers. Minimum requirement at each center is as follows: CENTER 1 2 3 4 MILK 7 5 3 2 Demand Cost in the hundreds of rupees of shipping one million litre from each plant to each distribution center is given in the following table: Distribution center D1 D2 D3 D4 P1 2 3 11 7 P2 1 0 6 1 P3 5 8 15 9 objective is to minimize the total transportation cost. Q.2 A Company has factories at F1, F2, and F3 which supply to warehouses at W1, W2, and W3. Weekly factory capacities are 200,160,and 90 units, respectively. Weekly warehouse requirement are 180,120and 150 units respectively. Unit shipping costs (in rupees) are as follows: Ware house W1 W2 W3 SUPPLY F1 16 20 12 200 F2 14 8 18 160 F3 26 24 16 90 DEMAND 180 120 150 450 Determined the optimal distribution for this company to minimize total shipping cost.

**Second Topic Transportation Model Problems for Practice
**

Q.1 A company has four manufacturing plants and five warehouses. Each plant manufactures the same product which is sold at different prices in each warehouse area. The cost of

respectively while those demanded at retail stores A .150 and 250. The sales prices.2 Obtain an optimal solution to the transportation problem by UV method.manufacturing and cost of raw material are different in each plant to various factors.3 Consider a firm having 2 factories.) e 1 2 3 4
A 4 7 4 3 30 80 B 8 9 7 8 32 120 C 2 7 6 10 28 150 D 10 7 5 8 34 70 E 2 5 8 9 30 90 (a) Formulate this problem as a transportation problem to maximize profit. Rather than shipping directly from factories to retail stores. The transportation cost (in Rupees) per unit is given in the table .shipment. The firm is to ship its products from the factories to three. Q.retail stores. The data are given in the following table: PLANT ITEM Manufacturing cost (RS) per unit Raw material cost (RS)per unit Capacity per unit time 1 12 08 100 2 10 07 200 3 08 07 120 4 08 05 80
The company has five warehouses. transportation costs and demands are given in the following table: ware house transportation cost per unit sale price demand per unit(Rs. FACTORY RETAIL STORE
. The capacities of the plants are also different. (b) Find the solution using VAM method. Use VAM method for obtaining initial feasible solution D1 19 70 40 5 D2 30 30 8 8 D3 50 40 70 7 D4 10 60 20 14 CAPACITY 7 9 18 34
S1 S2 S3 DEMAND
Q.B and C are 100. respectively. it is asked to investigate the possibility of Trans. The number of units available at factories X and Y are 200 and 300.

X Factory X Y 0 6
y 8 0
A 7 11
B 8 9
C 9 10
Retail store A B C
7 1 8
2 5 9
0 1 7
5 0 8
1 4 0
Find out the optimal shipping schedule. Each shop has a specific production capacity and each warehouse has certain amount of requirement.4 ABC limited has three production shops supplying a product to five warehouses. Q.
Third Topic Assignment Model Problems discussed in the class
. The cost of production varies from shop to shop and cost of transportation from one shop to a warehouse also varies. The cost of transportation are given below: Ware house III 4 7 6 85
A B C DEMAN D
I 6 5 3 60
II 4 6 4 80
IV 7 4 3 105
V 5 8 4 70
SUPPLY 100 125 175 400
The Cost Of Manufacturing The Product At Different Production Shop Is shop A B C Variable cost 14 16 15 Fixed cost 7000 4000 5000
Find the optimum quantity to be supplied from each shop to different warehouses at minimum total cost.

B. The monthly business depends upon the city and the effectiveness of the branch manager in that city.Q. M2. out of four candidates P. C and D. R and S. lakhs) 11 9 16 11 17 13 14 16 D 9 10 8 12
Which manager should be appointed at which city so as to get maximum total monthly business?
Q.D which can be manufactured on each of the four machines P. which job will you process on which machine? Q.R and S.) 25 33 24 23 21 23 36 34 S 29 21 24 40
To achieve minimum processing cost. P3. Each of the machines can perform each of four tasks. M3. P4 and P5 per unit made on machines M1. Time taken at each of the machines to complete each task is given in the matrix below: How should the tasks be assigned to machines requirement of machine hours? Tasks A I II III IV 51 32 37 55 Machine B C Processing times (Hrs. A branch manager is to be appointed one at each city.4 The production cost or products P1.B.1 A job production unit has four jobs A. Branch manager P Q R S 11 13 12 16 City A B C Monthly business (Rs.) 77 49 34 59 44 70 55 58 D 55 68 54 55
Q.Q. Q. one each at city A.C. M4 and M5 are tabulated below:
.2 A workshop has four machines and four tasks for completion. P2.3 A pharmaceutical company has four branches. The processing cost of each job on each machine is given in the table below: Jobs P A B C D 31 25 19 38 Machine Q R Processing cost (Rs.

80. The
territories are not equally rich in its sales potential. P2=Rs.
. 65 Decide which product should be made on which machine to realize maximum profit. a typical salesman.
Q.70 and P5 = Rs.90. P4= Rs. P3=Rs. Lakhs) Plants A B C D I 59 65 62 65 II 70 73 72 74 Products III 55 55 59 58 IV 71 79 68 76 Products III 69 71 73 74 IV 82 94 80 89
Suggest which plant should produce which product to maximize profit?
Q.5 Darda oil mills have four plants each of which can manufacture anyone of the four
products. The revenue and cost details are as given below:
Sales revenue (Rs. and four salesman available for an assignment.M1 M2 M3 M4 M5
P1 50 60 40 35 40
P2 80 30 40 40 45
P3 30 40 50 30 50
P4 40 40 45 35 45
P5 45 50 35 50 45
Selling prices per unit are as follows: P1= Rs. It is estimated that. operating in each territory would bring in the following annual sales.105. Lakhs) Plants A B C D I 70 80 75 78 II 88 90 87 85 Manufacturing cost (Rs. The manufacturing costs differ from plant to plant and so do the sales revenues.6 A company has four territories open.

With the performance matrix given below.Territory Annual Sales(Rs.2 A departmental head has three subordinates and four tasks for completion. which three of four tasks should be assigned to subordinates?
.)
I 126000
II 105000
III 84000
IV 63000
The four salesmen also differ in their ability. It is estimated that. Typical salesman: avg salesman 21/4 Matrix:
7 5 5 4 126000 168000 120000 120000 96000 105000 140000 100000 100000 80000 84000 112000 80000 80000 64000 63000 84000 60000 60000 48000
Third Topic Assignment Model Problems for Practice Q. His estimate of time for each subordinate and each task is given in matrix below: Tasks I A B C D 17 28 20 28 Subordinates II III Processing cost (Rs. The employees differ in their capabilities and the tasks differ in their work contents.) 25 26 27 23 18 17 25 23
IV 20 25 14 19
How should the tasks be assigned to minimize requirements of man-hours? Q.1 A departmental head has four subordinates and four tasks for completion. working under the same conditions. The subordinates
differ in their capabilities and tasks differ in their work contents and intrinsic difficulties. their yearly sales would be proportionately as follows: Salesman Proportion A 7 B 5 C 5 D 4
Assign the salesmen to each territory if the criterion is maximum expected total sales.

The gears differ in their work contentsgear with. feeds and ability to take depth of cut. is given below: From City A B C D E 0 16 18 21 11 To city A 12 0 17 14 13 B 15 13 0 18 12 C 17 18 14 0 18 D 11 12 17 16 0 E
Determine the least cost route. The production control department has prepared the machine wise cost matrix as shown in the matrix below: Gear I II III IV V VI M1 15 20 19 30 6 13 M2 18 16 16 8 12 Hobbing machines M3 M4 13 10 12 14 15 42 38 10 12 16 14
M5 18 19 35 9 15
M6 14 15 20 36 10 18
Gear I can be assigned to machine M5 because of steep helix angle. He wishes to start from a particular city.3 A gear manufacturer requires 2000 numbers per month of each of the six types of gears.4 A salesman has to visit five cities. Gear III can not be assigned to machine M4 as it is not within the capacity of this machine. Q. visit each city once and return to starting city.Tasks I 9 8 20 21
Subordinates II 12 13 12 15 III 11 17 13 17
A B C D
Q. number of teeth. module etc-and machine differ in their capabilities-speeds. And gear IV can not be loaded on machine M2 because of limitations of process capability of the machine.
. Find the optimum assignment schedule. The cost of going from a city to another in Rs. Six hobbing machines are available to process these gears.

Unsold trees.000 Fair 18. 40 each. The profit depends on the market acceptability of the model which are present is uncertain but is had been broadly classified into four categories: excellent.15 0. The profits or losses (losses are indicated by negative sign) expected by the management from the different levels of market acceptability of the models are as follows: __________________________________________________________________ Market Profit (Rs.000 78.Q. however.1 A departmental store purchases Christmas trees. have no salvage value.05
(a) Setup a payoff table (b) How much quantity should the departmental store buy to maximize its profit?
Q. good.000 8. The purchase price of the trees is Rs.000 38.35 0.000 Poor 8.) for the model for the Indicated market acceptability __________________________ Deluxe Janata __________________________________________________________________ Excellent 60.000 -12. Each tree selling price Rs.2 A manufacturer of sewing machines is faced with the problem of selecting one of the two models for manufacturing.000 Good 28. fair and poor.20 0. 25 each The probability distribution obtained from analysis of past data is given below: Trees sold 100 200 300 400 500 probabilities 0.000 __________________________________________________________________ Which product should the company select from the standpoint of maximin (gain) criterion?
. which can be ordered only in lots of 100.25 0.

the spares for this unit can be purchased for Rs.40 (iv) Minimax regret criteria (v) Laplace criteria
Q. of spares to be ordered. 350 per customer.05 ___________________________________________________________ If a spare is needed and is not available. 15. Unused spares have no salvage value.15 4 0.3 A company is making a large boiler installation. (b) Determine the best decision from the stand point of (i) Maximin criteria (ii) Maximax criteria
(iii)Hurwiez a-criterion assuming a=0.000. 12 each. an authorized dealer in domestic appliances find that the cost of
holding refrigerator in stock for a week is Rs.35 1 0. Q. sports
knowledge of his customers.4 A newspaper boy is thinking of selling a special one time edition of a magazine to his regular newspaper customers. Determine the optimal no.Q. 8 each and can be sold for Rs. Probability distribution of demand is as follows:
. The probability distribution for the failure of the unit during the life time of installation is given as : __________________________________________________________ _______Failure_________________________Probability____________ 0 0. At the time of original order.25 2 0. Magazine that are not sold can be returned to the publisher for a refund of 50%. 50.
The magazines can be purchased at Rs. (a) Construct the decision matrix for the above inventory problem indicating possible monetary consequences.5 Agent Corner. the total cost of idle time and replacement cost will be Rs.20 3 0. 2. A certain automatic monitoring unit is critical for the operation of the whole system. Customers who cannot get a new refrigerator immediately wanted to go to another dealer for which expected profit is Rs. Based on his he believes that he can sell between 9 to 12 copies.000 per unit.

Based on his knowledge of his customer the copies of the magazine with probabilities estimated as under: No of copies 6 7 8 9 10 11 12 probability 0.20 0.10 0.05 Assuming that there is no time lag between ordering and delivery.20 0.35 0.20 0.does it affect the inventory decision?
Q. a) Magazines that are not sold can be required to the publisher for a refund of 50%.10 0.20 0.30 0.05 0.15 0.35 0.10 0. of refrigerator: 0 1 2 3 4 5 6 Probability : 0.7 A newspaper boy is thinking of selling a special one time edition of a sports magazine to his
regular newspaper customers.05 0.Determine optimum quantity to be purchased?
.10 0.05 0.15 0.No. how many refrigerators should we order per week?
Q.05
The magazine can be purchased at Rs 8 each and can be sold for Rs 12 Each. Any tree left over after the selling season has no resale value.10 0.10 0.05
a) How many trees should be department store buy to maximize its profit? b) If trees left after the selling season cost Rs 5 each to remove .6 A departmental store buys Christmas tree at a landing cost of Rs 25 each and sells them
at an average of Rs 40. The productivity distribution of sale of trees derived from analysis of pas t sales data is under: Tree (sale) Probability 100 200 300 400 500 600 700 0.

No.1
Q. If these units are not available when needed.041 0. what should be the order quantity. Daily demand has the following distribution.001 requirement How many spares should the company buy in order to optimize inventory decision?
Fifth Topic Decision Analysis Problems for Practice Q.b) If the publisher does not take back the unsold magazines and the boy is forced to sell them as scrap at rs 1.8 A Ship building company has launched a program for the construction of new class of
ships. c) And if the boy gets magazines ³on sale basis´.1 0. He cannot return unsold newspapers.50.2 0. What is optimal order quantity? Given: Demand 100 110 120 130 140 150 Probability 0.3 0.1 A perishable item is ordered only once each demand period.
selling price is $5.005 0.876 0.what quantity should be ordered?
Q. each costing 200000 have to be purchased.1 0.2 A newspaper boy buys papers for Rs 1. Nos of spares: 0 1 2 3 4 5
Probability of 0. Acquisition cost is $3.015 0. of customers:
23
24
25
26
27
28
30
31
32
. a serious loss is incurred which is in order of Rs 10000000 each instance requirements of spares with the corresponding probabilities are given below. and salvage value is $1.2 0.30 each and sells them for Rs 1. Certain spare units like prime over.40 each.062 0.50.

05
If each day's demand is independent of the previous day¶s.10
0.01
0.03
0.Probability:
0.10
0.25
0.20
0.06
0. how many papers he should order each day?
.05
0.