Mid Term examination January, 2022

MBA 4th Trimester

Subject- Management Science (401)
Time: -1:30 Hours MM: -30

Q1 Answer in one-line (one mark each) 1X5=5

1) What are the steps involved in Hungarian method?
2) How do we satisfy the unbalanced problem in transportation?
3) What do you mean by a statistical model?
4) What are different methods of finding feasible solution in transportation problem?
5) What do you mean by degeneracy in Transportation Problem?

Q2 Attempt any three 3X5=15

I. What is assignment problem? How is this beneficial to the business managers?
II. A company owns two flour mills, A and B, which have different production capacities for
high, medium and low grade flour. This company has entered a contract to supply flour to
a firm every week with 12, 8 and 24 quintals of high, medium and low grade
respectively. It costs the company Rs. 1,000 and Rs. 800 per day to run mill A and B
respectively. On a day, mill A produces 6, 2 and 4 quintals of high, medium and low
grade flour respectively; mill B produces 2, 2 and 12 quintals of high, medium and low
grade flour respectively. How many days per week should each mill be operated in order
to meet the contract order most economically?
III. What is transportation problem? Give the importance of transportation model in business.
What are the assumptions in transportation problem?
IV. Determine the optimal solution of the following transportation problem to minimize the
total transportation cost.

W1 W2 W3 W4 supply
P1 4 6 5 5 20
P2 4 5 5 6 20
P3 5 6 6 6 20
P4 5 6 5 6 20
Requirement 18 20 21 21

V. You have $10,000 to invest, and three different funds from which to choose. The
municipal bond fund has a 8% return, the local bank's CDs have an 9% return, and the
high-risk account has an expected (hoped-for) 12% return. To minimize risk, you decide
not to invest any more than $2,000 in the high-risk account. For tax reasons, you need to
invest at least three times as much in the municipal bonds as in the bank CDs. Formulate
the problem as LPP.
Q3 case study 10 marks