JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

POST GRADUATE DIPLOMA IN MANAGEMENT

2nd Trimester (Batch 2017-19)
END TERM EXAMINATIONS

Course Name Management Science Course Code OP-201

Max. Time 120 minutes Max. Marks 40
Attempt all questions. Marks are indicated against each question.

Q1. The manager of Metro sports wishes to determine how many advertisements to place in
the selected three monthly magazines A, B and C. His objective is to advertise in such a way
that total exposure to principal buyers of expensive sports goods is maximized. Percentages
of readers for each of the magazines are known. Exposure in any particular magazine is the
number of advertisements placed multiplied by the number of principal buyers. Formulate the
LP model for the problem.

Magazine A Magazine B Magazine C

Readers 1 lakh 0.6 lakh 0.4 lakh
Principal Buyers 20% 15% 8%
Cost per Advertisement (in Rs) 8000 6000 5000
The budgeted amount is at most Rs 1 lakh for the advertisements. The owner has already
decided that magazine A should have no more than 15 advertisements and that B and C each
have at least 8 advertisements.

Formulate the Liner Programming model for the problem. (6 marks)

Q2. Two electronic companies ‘Samsung’ and ‘LG’ are competing for sales in two different
but equally profitable product line. Because of the recent technological breakthrough, both
companies will be making a major improvement in both products. If both product
improvement are developed simultaneously, either company can have them ready for sale in
10 months. Another alternative is to have a ‘crash program’ to develop only one product first
to get it marketed ahead of the competition. By doing this, ‘Samsung’ could have one product
ready for sale in 8 months, whereas ‘LG’ would require 7 months. For either company, the
second product could then be ready for sale in an additional 7 months.
The market research team of ‘Samsung’ developed the following information for the varying
product development strategies:
 If both companies market their improved products simultaneously, ‘Samsung’
would increase its share by 10% on either of the product
 If ‘Samsung’ marketed their product sooner than ‘LG’ by 2, 4 and 6months,
‘Samsung’ would increase its share by 22%, 32% and 42% respectively.
 If ‘LG’ marketed their product sooner than ‘Samsung’ by 1, 3, 5 and 8 months,
‘Samsung’ would lose its share by 2%, 8%, 10% and 12% respectively.

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Find the development strategies of both companies and determine which strategy ‘Samsung’
should use to increase its share. (7 marks)

Q3. You have the chance to invest Rs 1, 00, 000 in one of the three mutual funds: Utility,
Aggressive Growth, and Global. The value of your investment will change depending on the
market conditions. There is a 20% chance the market will go down, 45% chance it will
remain moderate, and 35% chance it will perform well.
For Utility Mutual Fund, percent return on investment (ROI) in down market is 5%, in
moderate market is 7%, and in up market, ROI is 8%.
For Aggressive Growth Mutual Fund, ROI in down market is -10%, in moderate market is
5%, and in up market, ROI is 30%.
For Global Mutual Fund, ROI in down market is 2%, in moderate market is 9%, and in up
market, ROI is 20%.

Which mutual fund should you select as per Decision Tree Analysis? (6
marks)

Q4. “Market Prediction” is a market research firm engaged in carrying market research. The
firm has just received project on market research of toothpaste market form a very famous
brand “K-Get”. The present market share of the three available toothpaste brands “K-Get”,
“Feel-Up” and “Dento-Glow” is 39%, 27 % and 34% respectively. The researchers of
“Market Prediction” conducted a survey in the supermarket of the city and collected the
following data. A total of 300 respondents were surveyed, 100 for each of the three brands:
K-Get, Feel-Up and Dento-Glow.
Out of the 100 respondents who purchased brand K-Get this month, 71 respondents informed
that they purchased the same brand K-Get last month also, 17 respondents informed that last
month they purchased brand Feel-Up and this month they switched to brand K-Get, and 12
respondents informed that last month they purchased brand Dento-Glow and this month they
switched to brand K-Get.
Out of the 100 respondents who purchased brand Feel-Up this month, 57 respondents
informed that they purchased the same brand Feel-Up last month also, 28 respondents
informed that last month they purchased brand K-Get and this month they switched to brand
Feel-Up, and 15 respondents informed that last month they purchased brand Dento-Glow and
this month they switched to brand Feel-Up.
Out of the 100 respondents who purchased brand Dento-Glow this month, 69 respondents
informed that they purchased the same brand Dento-Glow last month also, 18 respondents
informed that last month they purchased brand K-Get and this month they switched to brand
Dento-Glow, and 13 respondents informed that last month they purchased brand Feel-Up and
this month they switched to brand Dento-Glow.

Analyse the situation and based on the above information, estimate market share of the three
brands K-Get, Feel-Up and Dento-Glow after one month and after two months. (7 marks)

Q5. Consider the following network as the path that fire brigade can follow to reach from
Fire Station (Node 1) to City Slum (Node 9). The arcs show distance in Kms. The driver is
trying to reach city slum through shortest route. Assuming the speed of fire brigade is
constant in all paths, formulate this problem using network optimization technique to achieve
the objective of the Fire Brigade.
(7 marks)

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Q6. The City Bazaar operates 4 retail stores CB-1, CB-2, CB-3 and CB-4, at different
locations of Lucknow city. Management wants to examine which of these are working
efficiently or not. For the study management considers some input measures as weekly hours
of operations, number of employees, and area. Output measures of performance include sales,
average weekly contribution to profit, and customer satisfaction report. Data for the input and
output measures are given below

Input Measures City Bazaar Retail Stores

CB-1 CB-2 CB-3 CB-4
Hours of operations 80 94 84 109
Number of employees 10 15 20 25
Area 20 15 30 15

Output Measures City Bazaar Retail Stores

CB-1 CB-2 CB-3 CB-4
Sales (thousand $) 70 100 80 100
Weekly profit(hundred $) 25 32 35 30
Average Customer satisfaction 7.0 6.5 7.0 9.0

Formulate the Data Envelopment Model (DEA) that can be used to evaluate the performance
of City Bazaar-1 (CB-1). (7 marks)

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