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You are on page 1of 12

Note: The actual questions in the questions may or may not be from the

question bank but the pattern will remain the same. In case a question is

changed it will be replaced by the question from the same chapter.

PART-A

Q1. Define the following w.r.t Queuing problems-(a) Arrival rate (b) Service rate

(c) Queue length (d) Balking (e) Jockeying (f) Reneging (g) Utilization rate (h)

Idle rate

Q2. What are the different decisions making environments know to you? Explain

each of them briefly.

Q3. What do you understand by the term decision making Discuss the different

steps involved in decision making in business management.

Q4. What is Linear Programming? State the significance of Linear Programming

in decision making.

Q5. What are the assumptions underlying linear programming?

Q6. What are the steps involved in solving a linear programming method by

graphical method?

Q7. What are the applications of quantitative techniques in business?

Q8. What the applications of linear programming problem in business?

Q9. What are the computational steps involved of the Simplex method in solving

the linear programming problem? How would you identify whether an optimal

solution to a problem obtained using simplex method is unique or not?

Q10. Define- (i) Slack variables (ii) Feasible solution (iii) Infeasible solution (iii)

Unbounded solution with respect a linear programming problem.

Q11. What is a transportation problem? What are the steps involved in Vogels

approximation method?

Q12.What are the steps involved in MODI method?

Q13. What is looping in a transportation problem? What is its significance?

Q14. What is an assignment problem? Distinguish between assignment model and

transportation model.

Q15. What are the steps involved in the Hungarian method?

Q16.How do you handle the following situations in an assignment problem: (i)

Unbalanced problem (ii) Maximization

Q17.What is a game? What is the importance of studying game theory?

Q18.What are the characteristics of a game?

Q19.Define: (i) Saddle point (ii) Two person zero sum game (iii) Strategy (iv) Pay

off (v) Dominance

Q20.What are the methods for solving a game?

Q21. Define Queue. Explain the various queue disciplines.

Q22 Explain the queue parameters

Q23. Differentiate between CPM and PERT.

Q24. What is Network analysis? What is its significance?

Q25. Explain -Slack and Float their types and their importance in network analysis.

PART-B

Q26. A candidate is appearing for the competitive test and finds the following

information on seeing the question paper:

(i) the total time is 3 hours

(ii) the paper has two sections- section A and section B

(iii) to answer at least 2 questions from section A and at least 3 questions

from section B

(iv) A question of first section carries 10 marks and that of the second section

carries 15 marks

(v) Time to answer a question of section A is 15 minutes and that of section

B is 25 minutes.

(vi) The maximum number of questions to be answered is 10.

Formulate a linear programming problem so as to find out how many

questions from each section the candidate should answer and what are the

maximum marks? (Do not solve the problem)

Q.27. Solve the following linear programming problem graphically:

Maximize Z=2X1+3X2

Subject to: X1+X230

X230

X212

X1-X20

X120

X1, X20

Q28.Solve the following linear programming problem using Simplex method:

Maximize: Z=500X1+600X2+1200X3

Subject to: 2X1+4X2+6X3160

3X1+2X2+4X3120

X1, X2, X30

Q29. Convert the following assignment problem into a Linear Programming

problem. Write the objective function and constraints. (Do not solve)

Tasks

Operators

I II III IV

A 8 26 17 11

B 13 28 4 26

C 38 19 18 15

D 19 26 24 10

Q30. A truck company on a particular day has 4 trucks for sending material to 6

terminals. The cost of sending material to destination by different trucks will be

different as given by the cost matrix below. Find the assignment of 4 truck

terminals out of 6 at a minimum cost.

Trucks

Terminals

A B C D

1 3 6 2 2

2 7 1 4 4

3 3 8 5 5

4 6 4 3 3

5 5 2 4 4

6 5 7 6 6

Q31. . Solve the following assignment problem:

Jobs

Men

I II III IV V

A 2 9 2 7 1

B 6 8 7 6 1

C 4 6 5 3 1

D 4 2 7 3 1

E 5 3 9 5 1

Q32 An organization producing 4 different products i.e. A, B, C and D having 4

operators i.e. P, Q, R and S who are capable of producing any of the four products,

works effectively for 7 hours a day. The time (in minutes) required for each

operator for producing each of the products are given below along with the profit

(Rs. per unit):

Product

Operator

A B C D

P 6 10 14 12

Q 7 5 3 4

R 6 7 10 10

S 20 10 15 15

Profit(Rs/unit) 3 2 4 1

Find out the assignment of operators to product which will maximize profit.

Q33 Find the Optimum solution of the following transportation problem:

D1 D2 D3 D4 Supply

S1 19 30 50 10 7

S2 70 30 40 60 9

S3 40 8 70 20 18

Demand 5 8 7 14

Q34. A company has three plants and four warehouses. The supply and the demand

in units and the corresponding transportation costs are given below. The table has

been taken from the solution procedure of the transportation problem:

(The allocations in the cell are shown in brackets)

Warehouse

Plant

I II III IV Supply

A 5 10 4 (10) 5 10

B 6 (20) 8 7 2 (5) 25

C 4 (5) 2 (10) 5 (5) 7 20

Demand 25 10 15 5

Answer the following questions:

(i) Is the solution feasible? (ii) Is the solution Optimum? (iii) If the cost for

the route B-III is reduced from Rs 7 to Rs 6 per unit, what will be the

optimum solution?

Q35. A company has three plants and four destinations. The supply and the

demand in units and the corresponding transportation costs are given below:

Destination

Plants

D1 D2 D3 D4 Supply

I 2 3 11 7 6

II 1 0 6 1 1

III 5 8 15 9 10

Demand 7 5 3 2

(a) Find the Initial feasible solution by-(i) North West Corner rule method (ii)

Least cost method and (iii) Vogels approximation method

(b) Find the optimum solution using Vogels approx.. method and MODI

method.

Q36. . Mr.X quite often flies from town A to town B. He can use the airport bus

which costs Rs.13 but if he takes it there is a 0.08 chance that he will miss the

flight. A hotel limousine costs Rs.27 with a 0.96 chance of being on time for the

flight. For Rs.50 he can use a taxi which will make 99 out of 100 flights. If Mr.X

catches the flight on time, he will conclude a business transaction which will

produce a profit of Rs.1000, otherwise he will lose it. Which mode of transport

should Mr. X use?

Q37. . XYZ company manufactures parts for passenger cars and sells them in lots

of 10,000 parts each. The company has a policy of inspecting each lot before it is

actually shipped to the retailer. Five inspection categories established for quality

control represent the percentage of defective items contained in each lot. The daily

inspection chart shows the following rating or breakdown inspection:

Rating Proportion of

defective Items

Frequency

Excellent (A) 0.02 25

Good (B) 0.05 30

Acceptable (C) 0.10 20

Fair(D) 0.15 20

Poor (E) 0.20 5

The management is considering the following course of action:

(i) Shut down the entire plant operations and thoroughly inspect each

machine.

(ii) Continue production as it now exists but offer the customer a refund for

defective items that are discovered and subsequently returned. The first

alternative will cost Rs 600 while the second alternative will cost the

company Rs1for each defective item that is returned. What is the

optimum decision for the company?

(iii) Find the EVPI

Q38.The following matrix gives the pay off of different strategies(alternatives) S1,

S2 and S3 against the events E1, E2, E3 and E4:

E1 E2 E3 E4

S1 Rs.4000 -100 6000 18000

S2 20,000 5000 400 0

S3 20,000 15,000 -2000 1000

Indicate the decision taken under the following approach: (i) Maximax criterion (ii)

Maximin criterion (iii) Minimax (Regret) criterion (iv) Laplace criterion

Q39. A certain piece of equipment has to be purchased for a construction project at

a remote location. The equipment contains an expensive part which is subject to

random failure. Spares of this part can be purchased at the same time the

equipment. Their unit cost is Rs.1, 500 and they have no scrap value. If the part

fails on the job and no spare is available, the part will have to be manufactured on

a special order basis. If this is required, the total cost including down time of the

equipment, is estimated as Rs.9, 000 for such occurrence. Based on previous

experience with similar parts, the following probability estimates of the number of

failures expected over the duration of the project is given below:

Failure: 0 1 2

Probability: 0.80 0.15 0.05

(i) Determine the optimal EMV and the optimal number of spares to

purchase initially.

(ii) Determine the EOL and the optimal course of action.

(iii) Determine the expected profit with perfect information and the expected

value of perfect information

Q40. Solve the following game:

Player B

PlayerA

I II III !V V

I -1 2 -1 10 50

II 1 -2 5 -2 -2

III -5 2 -5 10 50

IV 1 -10 5 -10 -10

V 1 -50 5 -50 -50

Q41. A company is currently involved in negotiations with its union on the

upcoming wage contract. Positive signs in the given table indicate wage increase

while negative sign represents wage reduction. What are the optimal strategies for

the company as well as the union?

Union

strategies

Company

strategies

U1 U2 U3 U4

C1 +2.50 +2.70 +3.50 -0.20

C2 +2.00 +1.60 +0.80 +0.80

C3 +1.40 +1.20 +1.50 +1.30

C4 +3.00 +1.40 +1.90 0

Q42.A self service store employs one cashier at its counter. Nine customers arrive

on an average every 5 minutes while the cashier can serve 10 customers in 5

minutes. Assuming Poisson distribution for arrival rate and exponential

distribution for service time, find the following: (i) Average no. of customers in the

system (ii) Average queue length (iii) Average time a customer spends in the

system (iv) Average time a customer waits before being served.

Q43. Arrival rate of telephone calls at a telephone booth are according to Poisson

distribution with an average time of 9 minutes between two consecutive arrivals.

The length of the telephone call is assumed to be exponentially distributed with

mean 3 minutes.

(i) Find the probability that a person arriving at the booth will have to wait.

(ii) The telephone company will install a second booth when convinced that

an arrival would expect to have to wait at least 4 minutes for the phone.

Find the increase in flow rate of arrivals which will justify a second

booth.

(iii) Find the fraction of a day that the phone will be in use.

Q44. A project has the following activities and other characteristics:

Activity Preceding

Activity

Most

Optimistic

time (weeks)

Most Likely

time (weeks)

Most

Pessimistic

time (weeks)

A Nil 4 7 16

B Nil 1 5 15

C A 6 12 30

D A 2 5 8

E C 5 11 17

F D 3 6 15

G B 3 9 27

H E,F 1 4 7

I G 4 19 28

(i) Draw the network diagram.

(ii) Identify the critical path

(iii) Find the expected duration and variance for each activity. What is the

expected project length?

(iv) What is the probability that the project is completed between 35 and 40

weeks?

Q45. Draw network from the following activity and find the critical path and

the total duration of the project:

Activity Immediate

Predecessors

Duration (Days)

A Nil 2

B Nil 4

C Nil 3

D A 1

E B 6

F C 5

G D,E 7

H F,G 2

Q46. A project has the following activities and other characteristics:

Activity Preceding

Activity

Most

Optimistic

time (weeks)

Most Likely

time (weeks)

Most

Pessimistic

time (weeks)

A Nil 1 1 7

B Nil 1 4 7

C Nil 2 2 8

D A 1 1 1

E B 2 5 14

F C 2 5 8

G D,E 3 6 15

H F,G 1 2 3

(i) Draw the network diagram.

(ii) Identify the critical path

(iii) Find the expected duration and variance for each activity. What is the

expected project length?

(iv) What duration will have 95% confidence for project completion?

(v) If the average duration for activity F increases to 14 days what will be its

effect on the expected project completion time which will have 95%

confidence?

Q47. A project has the following activities:

Activity Immediate

Predecessors

Duration

(Weeks)

A Nil 3

B Nil 2

C Nil 2

D A 4

E B 4

F B 7

G C 4

H D 2

I E 5

J F,G 6

K H,I 3

Calculate: (i) Critical path and total project duration (ii) Earliest event time and

latest event time (iii) Total and Free float for each activity.

Q48. Solve the following using Simplex Method:

Maximize Z=4X1+3X2+6X3

Subject to: 2X1+3X2+2X3440

4X1 +3X3470

2X1+5X2430

X1,X2,X30

Q49. A TV dealer finds that the cost of holding a TV in stock for a week is

Rs.50.Customers who cannot obtain new TVs immediately tend to go to other

dealers and he estimates that for every customer who cannot get immediate

delivery of TV he loses an average of Rs.200. For one particular model of TV the

probabilities of a demand of 0,1,2,3,4,and 5 TVs in a week are

0.05,0.10,0.20,0.30,0.20 and 0.15 respectively.

(i) How many TVs per week should the dealer order? Assume that there is

no time lag between ordering and delivery.

(ii) The dealer is thinking of spending on a small market survey to obtain

additional information regarding the demand levels. How much should he

be willing to spend on such a survey?

Q50. (a) Draw the following network diagram:

Activity Immediate

Predecessors

A ----

B A

C A

D A

E B

F C

G C

H D

I F

J H

K I

L E,K,G

M L,I

(b) Customers arrive at a one window drive-in bank according to Poisson

distribution with mean 10 per hour. Service time per customer is exponential

with mean 5 minutes. The space in front of the window, including that for the

serviced car can accommodate a maximum of three cars. Other cars can wait

outside the space.

(i) Find the probability that an arriving customer can drive directly to the space

in front of the window.

(ii) What is the probability that an arriving customer will have to wait outside

the indicated space?

(iii)How long an arriving customer expected to wait before starting service?

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