SETHU INSTITUTE OF TECHNOLOGY

(An Autonomous Institution)

DEPARTMENT OF MECHANICAL ENGINEERING
PERIODICAL TEST – III
19UME603 – OPERATIONS RESEARCH

1. The cost of a bike is $ 3000. The salvage value (resale value) and the running cost are
given as under. Find the most economical replacement age of the truck.

Year 1 2 3 4 5 6 7
Running Cost 600 700 800 900 1000 1200 1500
Resale Value 2000 1333 1000 750 500 300 300

2. An Electromechanical equipment has a purchase price of Rs. 7000 its resale value and
running cost are given below. Determine when the equipment should be replaced.

Year 1 2 3 4 5 6 7 8
Running Cost 2000 2100 2300 2600 3000 3500 4100 4600
Resale Value 4000 3000 2200 1600 1400 700 700 700

3. A machine owner finds from his past records that the costs per year of maintaining a
machine whose purchase price is Rs. 6000 are given below. Determine at what age the
machine should be replaced?

Year 1 2 3 4 5 6
Maintenance Cost 1000 1200 1400 1800 2300 2800
Resale Value 3000 1500 750 375 200 200

4. A transport company purchased a motor vehicle for rupees 80000/-. The resale value and
running cost are given below. Determine when the vehicle should be replaced.

Year 1 2 3 4 5 6 7 8
Scrap Value 70000 61000 55000 49000 32000 20000 10000 5000
Running Cost 3000 3600 4800 5000 8000 11200 15000 20000
5. Solve the following game.

Player B
I II III
I 1 7 2
Player A II 6 2 7
III 6 1 6

6. Solve the following game.

Player B
1 2 3 4
1 3 5 4 2
2 5 6 2 4
Player A
3 2 1 4 0
4 3 3 5 5

7. Solve the following game.

Player B
Player A 20 15 22
35 45 40
18 20 25

8. Solve the following game.

Company B

Company A 40 45 50
20 45 60
25 30 30