Management Development Institute, Gurgaon Programme: Post Graduate Programme in Management Course: Management Science Models Batch: 2012-14 Term:ll Examination: End-Term Duration: 2 Hours Date: 19" December, 2012 Max Marks:40 (Open Book Examination. Open Book means your own copy of the prescribed text book and your own class notebook — no photocopies. Attempt all five questions. All Questions carry equal marks. This question paper has 2 pages) Question 1 A sports club organizing a tournament has hired a travel agency to bock hotel rooms for the Visiting teams of players who would be participating in the tournament. The agency has 12 teams it needs to arrange rooms for in 8 possible hotels. The following table shows the number of rooms each team needs, the number of rooms available at each hotel, the room rate at each hotel and the maximum room rate each team can pay: Team No. |MaxRate | Required Hotel | Room Rate] Rooms in Rs'00__| Rooms INRs.'00___| Available 7 70 15 A 90, a 2 75 18 B 75 26 3 60 20 Cc 55, 38 4 80 12 D 95 25. 5 110) 17 E 100 26 6 90 10 F 80 38 7 70 18 6 70 35 é 80 18 H 80. 52. 9 80 20 7 10 65 16 : 11 90 20 12 100) 14 ‘All of a team’s rooms must be in the same hotel. Formulate an integer programming model that would reserve rooms for as many teams as possible according to their needs. Question 2 Three white and three black balls are distributed in two boxes in such @ way that each box contains 3 balls. At each iteration step, we do the following: (a) We draw one ball at random trom Box 4, call it L4 and one ball at random from Box 2, call it L2. And then (b) we put the ball denoted by L1 in Box 2 and the ball denoted L2 in Box 1- This completes one iteration step. We continue doing this in further iteration steps. If these iterations follow a Markov process, define the states involved and obtain the transition probability matrix,Question 3 Each morning, an individual leaves his house and goes for a run, He is equally likely to leave either from the front door or from the back door of his house. Upon leaving the house, he chooses a pair of running shoes or goes running barefoot if there are, unfortunately, no shoes at the door from which he started. On his return, he is equally likely to enter (and leave his running shoes) either from the front door or from the back door. If this individual owns 5 pairs of running shoes, and his process of running, as just described, is Markovian, obtain the transition probability matrix for this process. Question 4 The manager of a small independent grocery store is trying to determine the best use of her shelf space for soft drinks. The store carries national and generic brands and currently has 200 square feet of shelf space available. The manager wants to allocate at least €0% of the space to the national brands, and, regardless of the profitability, allocate at least 10% of the space to the generic brands. How many square feet of space should the manager allocate to the national brands and the generic brands if, a. The national brands are more profitable than the generic brands b. Both brands are equally profitable c. The generic brands are more profitable than the national brands Formulate the problem as an LPP, draw a neat figure and then arrive at your answers. Question 5 State whether the following statements are True (T) or False (F). In a transition probability matrix (in a Markov process), the sum of probabilities for elements in each row and elements in each column is equal to 1. Consistency of data in a pair-wise comparison matrix (as a part of AHP) is decided on the basis of the value of the consistency index. Two or more goals in a goal programming problem can have the same priority. d. Simulation is an optimization technique. a. AY: