AEREN FOUNDATIONS

Maharashtra Govt. Reg. No.: F-11724

AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL

MARKS:80

COURSE:MBA

SUB:QUANTITATIVEMETHODS N.B.:1)
1.

AnsweranySixteen

What is a linear programming problem? Discuss the scope and role of linear programminginsolvingmanagementproblems.Discussanddescribetheroleof linearprogramminginmanagerialdecisionmakingbringingoutlimitations,if any.

2.

Explaintheconceptandcomputationalstepsofthesimplexmethodforsolving linear programming problems. How would you identify whether an optimal solutiontoaproblemobtainedusingsimplexalgorithmisuniqueornot? a) Whatisthedifferencebetweenafeasiblesolution,abasicfeasiblesolution, andanoptimalsolutionofalinearprogrammingproblem? b) What is the difference between simplex solution procedure for a `maximizationanda`minimizationproblem? c) Usingtheconceptofnetcontribution,provideanintuitiveexplanationof whythecriterionforoptimalityformaximizationproblemisdifferentfrom thatofminimizationproblems.

Outline the steps involved in the simplex algorithm for solving a linear programming maximization problem. Also define the technical terms used therein.

3.

``Linearprogrammingisoneofthemostfrequentlyandsuccessfullyemployed OperationsResearchtechniquestomanagerialandbusinessdecisions.Elucidate thisstatementwithsomeexamples. 2

2 4. Describethetransporationproblemandgiveitsmathematicalmodel.Explain,by takinganillustration,theNorthWestCornerRule,theLeastCostMethodand the Vogels Approximation Method to obtain the initial feasible solution to a transportationproblem. Discussthevariousmethodsoffindinginitialfeasiblesolutionofatransportation problemandstatetheadvantages,disadvantages,andareasofapplicationfor them.

5.

Whatisanassignmentproblem?Itistruetosaythatitisaspecialcaseofthe transportationproblem?Explain.Howcanyouformulateanassignmentproblem asastandardlinearprogrammingproblem?Illustrate.Whatdoyouunderstand byanassignmentproblem?Giveabriefoutlineforsolvingit.

6.

Whataredifferenttypesofinventories?Explain.Whatfunctionsdoesinventory perform?Statethetwobasicinventorydecisionsmanagementmustmakeasthey attempttoaccomplishthefunctionsofinventoryjustdescribedbyyou.

7.

Whatisqueuingtheory?Whattypeofquestionsaresoughttobeansweredin analyzingaqueuingsystem?Giveageneralstructureofthequeuingsystemand explain. Illustrate some queuing situations. What is queuing theory? In what

types of problem situations can it be applied successfully? Discuss giving examples.

8.

Whatisareplacementproblem?Describesomeimportantreplacementsituations and policies. Briefly explain the costs which are relevant to decisions for replacementofdepreciableassets.Illustratetheirbehaviourandexplainhowthe optimaltimeforreplacementofanassetcanbedetermined. 3 3

9.

WhatkindsofdecisionmakingsituationsmaybeanalysedusingPERTandCPM techniques?StatethemajorsimilaritiesbetweenPERTandCPM.Underwhat circumstancesisCPMabettertechniqueofprojectmanagementthanPERT?A constructioncompanyhasreceivedacontracttobuildanofficecomplex.Ithas frequently engaged itself in constructing such buildings. Which of the two networktechniques,PERTandCPM,shouldinyouropinion,beemployedbythe company?Why?

10.

Describethestepsinvolvedintheprocessofdecisionmaking.Whatarepayoff andregretfunctions?Howcanentriesinaregrettablebederivedfromapayoff table?

11.

WhatdoyouunderstandbyMarkovprocesses?Inwhatareasofmanagementcan theybeappliedsuccessfully?Whatdoyouunderstandbytransitionprobabilities? Istheassumptionofstationarytransitionprobabilitiesrealistic,inyouropinion? Whyorwhynot?

12.

Explain how the probability tree helps to understand the problem of Markov processes.Explainthemethodofcalculationofendingupineachabsorbingstate whenachainbeingsinaparticulartransientstate.Whatisfundamentalmatrix ofMarkovchains?Whatdoesitcalculate?

13.

Whatissimulation?Describethesimulationprocess.Statethemajortworeasons forusingsimulationtosolveaproblem.Whataretheadvantagesandlimitations ofsimulation?``Whenitbecomesdifficulttouseanoptimizationtechniquefor solving a problem, one has to resort to simulation. Discuss. ``Simulation is typicallytheprocessofcarryingoutsamplingexperimentsonthemodelsofthe systemratherthanthesystemitself.Elucidatethisstatementbytakingsome examples. 4 4

14.

Acompanyhasthreeoffersforitsexistingequipmentinoneofthedivisions.The firstbuyeriswillingtopayRs.50,000attheendof8yearsperiod.Thesecond buyeroffersRs.39,000consistingofanimmediatepaymentofRs.14,000and Rs.25,000after6years.ThethirdbuyeragreestobuytheequipmentforRs. 29,000payablerightaway.Whichisthebestofferforthecompanyifitcanearn aninterest@8%perannumonthemoneyreceived?

15.

What is the difference between qualitative and quantitative techniques of forecasting.Whenisaqualitativemodelappropriate?BrieflydiscusstheDelphi methodofmakingforecasts.

16.a)

Howdoyoudistinguishbetweenresourcelevelingandresource allocation problems? State and explain an algorithm for resource allocation.

b)

ExplainthefollowingastheyareusedinPERT/CPM (i) Betadistribution,and(ii)Budgetoverrun.

17.

Thefollowingtablegivesdataonnormaltimeandcost,andcrashtimeandcost foraproject.

Activity

`Duration(Weeks) Normal Crash 2 3 3 4 1 2 1

TotalCost(Rs) Normal 300 75 200 120 100 90 60 Crash 450 75 300 120 190 130 110

12 23 24 25 34 46 56 i) ii) iii)

3 3 5 4 4 3 3

Drawthenetworkandfindoutthecriticalpathandthenormalprojectduration. Findoutthetotalfloatassociatedwitheachactivity. If the indirect costs are Rs. 100 per week, find out the optimum duration by crashingandthecorrespondingprojectcosts.

iv)

Withthecrashdurationindicated,whatwouldbetheminimumcrashduration possible,ignoringindirectcosts?

18.

Whatisa`gameingametheory?Whatarethepropertiesofagame?Explainthe ``best strategy on the basis of minimax criterion of optimality. Describe the maximinandminimaxprinciplesofgametheory.

19.

Explain the steps involved in solution to dynamic programming problems. Explainthefollowinginthecontextofdynamicprogramming: (a) (b) (c) (d) Stages States Payofffunction Recursiverelationship

20.

Apoliticalcampaignforelectiontotheparliamentisenteringitsfinalstageand prepollsurveysaremedicatingaveryclosecontestinacertainconstituency. Oneofthecandidatesintheconstituencyhassufficientfundstogivefivefull pageadvertisementsinfourdifferentareas.Basedonthepollinginformation,an estimatehasbeenmadeoftheapproximatenumber(inthousands)ofadditional votesthatcanbepolledindifferentareas.Thisisshownbelow.

No.of CommercialAds 0 1 2 3 4 5

A 0 9 15 1 25 31

Area B 0 13 17 21 23 25

C 0 11 1 23 21 27

D 0 7 15 25 29 33

Using dynamic programming, determine how the five commercial ads be distributedbetweenthefourareassoastomaximizetheestimatednumberof votes.