RENAISSANCE UNIVERSITY

School of Management – PGDM – 2020-2022 – 2nd Semester

Final Examination – September 2021
Subject: Operation Research Sub. Code: PGDM-410
Time: 03:00 Hours Marks: 60
Attempt any five Questions out of eight. Figure in right hand indicate marks.

Q.1 Answer the following:

(a) Define OR, Write scope, importance and applications of OR. (6)
(b) What is Linear Programming? Discuss the structure of LPP . (6)

Q.2 Answer the following:

(a) Find an initial basic feasible solution of the following problem using V.A.M

(6)

b) Solve the Optimality by MODI of the above (a) Problem. (6

Q.3 Answer the following:

(a) Consider the problem of assigning five jobs to five persons. The assignment costs are given as
follows. Determine the optimum assignment schedule.

(6)
 (b) Solve the following assignment problem.

(6)

Q.4 Answer the following:

(a) At Bharat petrol pump, customers arrive according to a Poisson process with an average time of
5 minutes between arrivals. The service time is exponentially distributed with mean time = 2
minutes. On the basis of this information, find out

1. What would be the average queue length?

2. What would be the average number of customers in the queuing system?
3. What is the average time spent by a car in the petrol pump?
4. What is the average waiting time of a car before receiving petrol? (6)

(b) New Delhi Railway Station has a single ticket counter. During the rush hours, customers arrive
at the rate of 10 per hour. The average number of customers that can be served is 12 per hour.
Find out the following:
(1) Probability that the ticket counter is free.
(2) Average number of customers in the queue. (6)

Q.5 Answer the following:

(a) The cost of a new machine is rs.5000. Maintenance cost for the nth year is given by
Rn=500(n-1). If the discount rate is 10% then , When shall machine be replaced? (6)

(b) The cost of a new machine is rs.6100 and its scrap value is only rs.100 The maintenance cost is
given below . (6)
Q.6 Answer the following:

(a) Maximize f(x) = 2x1 + 3x2 + 2x3 subject to:

x1 + 2x2 + x3 ≤ 4
3x1 + x2 + x3 ≤ 5
x1 + x2 + 2x3 ≤ 4
x1 + x2 + x3 ≤ 3
x1 ≥ 0,x2 ≥ 0,x3 ≥ 0 (6)

(b) solve the Duality of the following problem.

Zmax =3x+5y+7z
Subject to constraint :
X+Y+3Z≥10
4X- Y+2Z≤15 (6)
Q7 Answer the following:
(a) The Yum Yum corporation is considering the problem of marketing a new chocolate. The
investment required in this project is Rs.2,00,000 .There are two factors that are uncertain
annual demand and profit .The management has past data regarding the possible levels of two
factors.

Annual Demand Probability Profit Probability

1000 0.10 3.00 0.10

2000 0.20 5.00 0.20

3000 0.40 7.00 0.40

4000 0.20 9.00 0.20

5000 0.10 10.00 0.10

Using Monte-carlo simulation ,Determine following:

(1)Return on investment (2)average profit (3) average demand (6)

(b) Explain Monte-Carlo technique step wise ? (6)

Q.8 Answer the following:

(a) A fruit dealer buys oranges at the rate of Rs. 3 per dozen and sells them at the rate of Rs. 5 per
dozen . Oranges not sold during the day are treated as stale and thrown away The daily sales of
oranges in past has not been less than 98 dozen and not more than 100 dozen .Prepare a pay
off table and loss table. (6)

(b) From the above question find the best strategies according to

(1)Maximax (2)Maximin(3)Minmax criteria. (6)