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Master of Business Administration- MBA Semester 2
MB0048-Operations Research-4 Credits
(Book ID: B1631)
Assignment (60 Marks)
Note: Answer all questions within 300 to 400 words each. Each Question
carries 10 marks 6 X 10=60
Q1. Discuss the methodology of Operations Research. Explain in brief the
phases of Operations Research.
Answer. a). The basic dominant characteristic feature of operations research is that
it employs mathematical representations or models to analyze problems. This
distinct approach represents an adaptation of the scientific methodology used by
the physical sciences. The scientific method translates a real given problem into a
mathematical representation which is solved and retransformed into the original
context. The OR approach to
Q2. a. Explain the graphical method of solving Linear Programming
Problem.
b. A paper mill produces two grades of paper viz., X and Y. Because of raw
material restrictions, it cannot produce more than 400 tons of grade X
paper and 300 tons of grade Y paper in a week. There are 160 production
hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade
X and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of
grade X and Y paper respectively. Formulate this as a Linear Programming
Problem.
Answer. a). Linear programming (LP, or linear optimization) is a
mathematical method for determining a way to achieve the best outcome (such as
maximum profit or lowest cost) in a given mathematical model for some list of
requirements represented as linear relationships. The procedure for mathematical
formulation of a linear programming problem consists of the following major steps:

Step 1: Study the given situation to find the key decision variables to be made.
Step 2: Identify the variables involved and
Q3. a. Explain how to solve the degeneracy in transportation problems.
b. Explain the procedure of MODI method of finding solution through
optimality test.
Answer. a). Degeneracy in transportation problem
If the basic feasible solution of a transportation problem with m origins and n
destinations has fewer than m + n 1 positive (occupied cells), the problem is said
to be a degenerate transportation problem.
Degeneracy can occur at two stages:
1. at the initial solution
2. during the testing of the optimal solution
To resolve degeneracy,
Q4. a. Explain the steps involved in Hungarian method of solving
Assignment problems.
b. Find an optimal solution to an assignment problem with the following
cost matrix:
J1

J2

J3

J4

M1

10

M2

M3

M4

Answer. a). Hungarian method algorithm is based on the concept of opportunity

cost and is more efficient in solving assignment problems. Adopt the following steps
mentioned below to solve an AP using the Hungarian method algorithm:
Step 1: Prepare row ruled matrix by selecting the minimum values for each row and
subtract it from other elements of the row.
Step 2: Prepare column reduced matrix by subtracting minimum value of the
column from the other values of that
Q5. a. Explain Monte Carlo Simulation.

b. A Company produces 150 cars. But the production rate varies with the
distribution.
Production
Rate
Probability

147

148

149

150

151

152

153

0.05

0.10

0.15

0.20

0.30

0.15

0.05

At present the track will hold 150 cars. Using the following random
numbers determine the average number of cars waiting for shipment in
the company and average number of empty space in the truck. Random
Numbers 82, 54, 50, 96, 85, 34, 30, 02, 64, 47.
Answer. a). Monte Carlo simulation is a computerized mathematical technique
that allows people to account for risk in quantitative analysis and decision making.
The technique is used by professionals in such widely disparate fields as finance,
project management, energy, manufacturing, engineering, research and
development, insurance, oil & gas, transportation, and the environment.
Monte Carlo simulation furnishes the decision-maker with a range of possible
outcomes and the probabilities they will occur for any choice of action
Q6. a. Explain the dominance principle in game theory.
b. Describe the Constituents of a Queuing System.
c. Differentiate between PERT and CPM.
Answer. a). Dominance principle in game theory,
At times, a convex combination of two or more courses of action may dominate
another course of action. Whenever a course of action (say A s or B q ) is
dominated by others, then that course of action ( A s or B q ) can be deleted from
the pay-off matrix. Such a deletion will not affect the choice of the solution, but it
reduces the order of

Spring-2015
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Rs.125 each.
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08894344452, 09501429907