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(Hons) Tourism and Hospitality Management
Cohort: BTHM/07/PT Year 3

Examinations for 2009 – 2010 Semester I / 2009 Semester II

MODULE CODE: QUAN 2204 Duration: 2 Hours Reading time: 10 Minutes

Instructions to Candidates:
1. 2. 3. 4. 5. This question paper consists of Section A and Section B. Section A is compulsory. Answer any two questions from Section B. Always start a new question on a fresh page. Total Marks: 100

This question paper contains 5 questions and 6 pages. Page 1 of 6

The wooden materials have to be cut properly by machines. The company has 160 employers. Each unit of Page 2 of 6 SSDTSemI/09-10 . Formulate the above as a linear programming problem and use a graph paper to determine by graphically how many units of each product the company should produce to maximize profit.8. [19 marks] (b) (i) Define the following: (1) basic variables. has asked to prepare a profit maximizing schedule for the manufacturing of desks. 0.SECTION A: COMPULSORY QUESTION 1: (50 MARKS) (a) (i) Explain the following terms in relation to linear programming problems: (1) decision variables. chairs and book-cases require 0. Each unit of these products is sold in the market at a profit of Rs 50 and Rs 80 respectively. (3) constraints. (ii) [2 marks] [2 marks] [2 marks] A company manufactures two products A and B. The electronic components are supplied by another manufacturer and the supply is limited to 600 units per day. The company has 650 man-hours available for painting and polishing. Each unit of desks. Production of product A requires 5 units of electronic components while production of product requires 6 units of electronic components.5 machine hours respectively. Production is limited to 80 units and 60 units of products A and B respectively due to limited supply of raw material. The total machine hours available for cutting are 100. The production of one unit of product A requires 1 man-day of labour and one unit of product B requires 2 man-days of labour. (2) slack variables. chairs and book-cases. which supplies office furniture.4 and 0. [2 marks] [2 marks] (ii) The manager of a company. (2) objective function.

Factories F1 F2 F3 (a) W1 30 29 31 Warehouses W2 W3 25 40 26 35 33 37 W4 20 40 30 (i) Apply the North-West Corner Method to the above problem and obtain an initial basic feasible solution. 3 and 3 man-hours for painting and polishing. chairs and book-cases are 9. chairs and book-cases require 5. The total capacity of a warehouse where these are to be stored is 1260 square feet. [13 marks] Page 3 of 6 SSDTSemI/09-10 . [21 marks] SECTION B: ANSWER ANY 2 QUESTIONS QUESTION 2: (25 MARKS) A company has three factories F1. (ii) Show that the initial basic feasible solution is not optimal. 6 and 9 square feet respectively. Apply the Vogel’s Approximation Method to determine the minimum transportation cost. Interpret your answer. W 2. 250 and 150 units per week respectively. $ 16 and $ 25 per unit respectively. [4 marks] [8 marks] (b) The Vogel’s Approximation Method provides an optimal solution to the above problem. 200 and 50 units per week respectively.desks. The floor space per unit of desks. Each product is supplied is supplied at a profit of $ 30. 160. Determine by Simplex Method the number of units of each product to be manufactured so that the profit is maximum. These units are to be shipped to four warehouses W1. W 3 and W 4 with requirement of 90. F2 and F3 with production capacity 100. The transport costs (in $) per unit between factories and warehouses are given below.

(iv) the average number of customers in the system. His estimates of the times (in minutes) each subordinate take to perform each task us given below: Subordinates Tasks I II III IV A 160 130 175 190 B 135 120 130 160 C 140 110 155 170 D 50 50 80 80 E 55 35 70 80 V 200 175 185 110 105 Determine how the tasks should be allocated to subordinates so as to minimize the total time taken. (ii) the proportion of time during the shop is empty.QUESTION 3: (25 MARKS) (a) A chief engineer has five subordinates and five tasks to be performed. (v) the average time spent. including service. [2 marks] [2 marks] [2 marks] [2 marks] [2 marks] Page 4 of 6 SSDTSemI/09-10 . The operator inspects them for defects and quite often can fix them right away or otherwise render a diagnosis. The subordinates differ in efficiency and the tasks differ in difficulties. Assuming that customers arrive at a Poisson rate and service time has the exponential distribution. [15 marks] (b) A mobile repair shop attended by a single operator has an average of four customers an hour who bring mobile phones for repair. This takes him six minutes on average. (iii) the probability of finding at least 1 customer in the shop. find (i) the fraction of time the shop is busy.

if the demand is moderate.35. It has narrowed the alternatives to two approaches to increase the maximum production capacity: (a) expansion at a cost of Rs 8 million. then should it modernize or expand? (iii) Calculate the Expected Value for Perfect Information (EVPI). the probability of high demand has been set at 0. Since high demand is considered somewhat less likely than moderate demand. the comparable figures would be Rs 7 million for expansion and Rs 5 million for modernization. [5 marks] [7 marks] (iv) Construct the conditional opportunity loss table and calculate the Expected Opportunity Loss (EOL). Both approaches would require the same amount of time for implementation. If the demand is high. [4 marks] (ii) If the company wishes to maximize its expected monetary value. (i) Construct a conditional profit (payoff) table. [9 marks] Page 5 of 6 SSDTSemI/09-10 . Interpret your answer.QUESTION 4: (25 MARKS) An Electrical Manufacturing Company has seen its business expand to the point where it needs to increase production beyond its existing capacity. Management believes that over the required payback period demand will either be high or moderate. expansion would gross an estimated additional Rs 12 million but modernization only an additional Rs 6 million due to lower maximum production capacity. or (b) modernization at a cost of Rs 5 million. On the other hand.

QUESTION 5: (25 MARKS) (a) A company has decided to redesign its telecommunication component. The project involves several activities which are listed in the following table. E 4 [15 marks] Draw the network for the project and find the critical path. D. Activity Description of Activity A B C D E F Predecessor Time Activity (Weeks) Finish component development 5 Design marketing program A 4 Design production system A 7 Select advertising media B 8 Initial production run C 9 Release component to market. Cost data are given in the table below: Years of Running Cost Resale Price Service (Rs) (Rs) 1 1800 1900 2 2200 1050 3 2700 600 4 3200 500 5 3700 500 Determine the proper length of service before machines should be replaced. (b) Machines in a factory have increased costs as they continue in service due to increased running cost. The initial cost is Rs 3500 and resale price drops as time passes until it reaches a constant value of Rs 500. [10 marks] ***END OF QUESTION PAPER*** Page 6 of 6 SSDTSemI/09-10 .