Symbiosis Institute of Business Management

Hyderabad - Batch 2018-20 & 2019-2021

Operations Research Internal Evaluation

Date: 21- 03-2020 Submission date: 27-03-2020

All questions carry equal marks

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Q.No.1
A firm manufactures 3 products A,B and C. The profits are Rs. 3, Rs.2 and Rs.4 respectively.
The firm has two machines and given in the table is the time required for processing the job
in minutes on each product

Machine Products
A B C
G 4 3 5
H 2 2 4
.
Machine G and H have 2,000 and 2,500 machine minutes respectively.
The firm must manufacture 100 A’s, 200 B’s and 50 C’s but not more than 150A’s
Set up an LP problem to maximize profit.(CO1)

Q.No.2

Solve the following LP problem using graphical solution (CO2)

Mximize Z = 3X1+ 5X2
Subject to X1 + 2X2 < 2,000
X1 + X2 < 1500
X2 < 600
X1 , X2 > 0
Q.No.3
A finance manager is considering drilling a well. In the past only 70% wells drilled were
successful at 20 meters depth in that area. Moreover on finding no water at 20 meters depth
some persons drill it to 25 meters with 20% chances of striking water at that depth. The
prevailing cost of drilling is Rs.500 per meter. The fiancé manager estimated that in case he
does not get water in his own well, he will have to pay Rs. 15000 to buy water from out side
for the same period of getting water from the well. Following decisions are considered
a). Do not drill any well
b). Drill up to 20 meters
c). If no water is found at 20 meters, drill further up to 25 meters
Draw an appropriate decision tree and determine the optimal strategy 9CO2 &5)

Q.No.4
A car hire company has one car at each of five depots a, b, c, d and e. A customer requires a
car in each town namely A,B,C,D and E. Distance in (KMs) between depots and the towns
are given in the following table

A B C D E
A 160 130 175 190 200
B 135 120 130 160 175
C 140 110 155 170 185
D 50 50 80 80 110
E 55 35 70 80 105

How should cars be assigned to customers so as to minimize the distance travelled. Solve the
problem using Hungarian method (CO5)

Q.No.5
A machine owner finds from his past records that the costs per year of maintaining a machine
whose purchase price is Rs. 6,000 are as given below

Year 1 2 3 4 5 6 7 8
Maintenance cost Rs 1000 1200 1400 1800 2300 2800 3400 4000
Resale price 3000 1500 750 375 200 200 200 200

Determine at what age a replacement is due ?

Q.No.6
Determine the optimal sequence of performing 5 jobs on 4 machines and the total time
required. The machining of each job is required in the order of ABCD and the processing
timing are as follows

Job Processing time in Hrs

A B C D
1 8 3 4 7
2 9 2 5 5
3 6 4 5 8
4 12 5 1 9
5 7 1 2 3
Q.No.7

A project schedule has the following characteristics

Activity Expected Time

(weeks)
1-2 4
1-3 1
2-4 1
3-4 1

3-5 6

4-9 5

5-6 4

5-7 8
6-8 1

7-8 2
8-10 5
9-10 7

a). Construct the network

b). Compute Early start and Late start for each event and
c). Find the critical path