Code No: NR310502

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III B.Tech I Semester Supplementary Examinations, February 2007 OPERATIONS RESEARCH ( Common to Computer Science & Engineering and Electronics & Computer Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks

1. (a) Explain how and why OR methods have been valuable in aiding executive decisions. (b) Maximise Z = 3x1 + 5x2 Subject to the Constraints: 3x1 + 2x2 ≤ 18 x1 ≤ 4 x2 ≤ 6 x1 , x2 ≥ 0 Use the graphical method

[4+12]

2. The international transport company ships truckloads of grain from three silos to four mills. The supply (in truckloads) and the demand (also in truckloads) together with the unit transportation costs per truckload on the different routes are given in the table below : The unit transportation costs, Cij are in thousands of rupees. Determine the minimum cost shipping schedule between the silos and the mills. [16] Mill 1 2 3 4 Supply 1 10 2 20 11 15 Silos 2 12 7 9 20 25 3 4 14 16 18 10 Demand 5 15 15 15 3. (a) What is the difference between a assignment problem and a traveling salesmen problem? (b) Solve the following assignment problem. The elements given in the matrix are the profits in Rs. derived for such a assignment. [4+12] Machines P Q R A 51 53 54 B 47 50 48 C 49 50 60 D 63 64 60 S 50 50 61 60

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4. A machine has been purchased at a cost of Rs.1,60,000. The value of the machine is depreciated in the first three years by Rs.20,000 each year and Rs.16,000 per 1 of 2

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year thereafter. Its maintenance and operating costs for the first three years are Rs.16,000 ,Rs.18,000 and Rs.20,000 in that order and increase by Rs.4000 every year. Assuming an interest rate of 10%,find the economic life of the machine. [16] 5. Solve the following game by algebraic method B 1 2 -2 -4 -1 3 1 2 [16]

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6. Two repairmen are attending six machines in an industry. Each machine breaks down according to a Poisson distribution with mean 4 per hour. The repair time per machine is exponential with mean 15 minutes. Find (a) The probability that two repairmen are idle (b) That one repairman is idle (c) What is expected number of idle machines not being served? [16]

7. (a) Write a note on periodic review inventory system and Fixed order quantity system (b) A company consumes 200 items/month working 30 days in a month. The cost of the item is Rs.1000. For a lot of more than 50, the price is Rs.950. Find out the optimum purchase quantity if ordering cost is Rs.10,000 and handling charges are 1% of unit cost per month. If the discounted price is available for a lot of more than 75 items, find the optimum purchase quantity. [6+10] 8. (a) What are the characteristics of dynamic programming problem. (b) Set up the recursive relation using dynamic programming approach when an N stage objective function is to be maximized. [8+8]

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