NANDHA ENGINEERING COLLEGE

(Autonomous), Erode-52
Approved by AICTE, New Delhi. Affiliated to Anna University, Chennai. Accredited by NAAC A+ Grade

DEPARTMENT OF MANAGEMENT STUDIES

22BAP03 – DATA ANALYSIS AND BUSINESS

MODELLING

LAB MANUAL

SEMESTER- II

May - 2023
NANDHA ENGINEERING COLLEGE
(Autonomous)
ERODE-52

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that 22BAP03 – DATA ANALYSIS AND BUSINESS MODELLING

is the record work done by ................................................................. ………………...with

Reg.No. .................................... of I MBA in partial fulfillment of the course.

Faculty in charge Head of the Department

Submitted for the Viva-Voce examination held on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Internal Examiner External Examiner

 MBA - MASTER OF BUSINESS ADMINISTRATION
VISION
To be recognized as a centre of excellence in Management to produce competent business
professionals to meet the changing needs of the society.

MISSION
 To be a learner centric environment to cater the changing business needs of the society.

❖ To provide quality management education through managerial activities to meet the global needs.

❖ To impart business knowledge to enhance Employability, Entrepreneurship and Research with

ethical and social responsibility.

PROGRAMME EDUCATIONAL OBJECTIVES (PEOs)

PEO 1: Core Competency: To work with multidisciplinary teams for problem solving and
understand the group dynamics and team work.

PEO 2: Employability, Entrepreneurship and Research To demonstrate business skills as

employee, Entrepreneur, researcher and excel in providing socially acceptable solutions to real world
problems by applying emerging management techniques.

PEO 3: Ethical and Committed Professional: To develop lifelong learning attitude, ethics and
values for a successful profession.
PO5. Lead themselves and others in the achievement of organizational goals, contributing effectively
to a team.

PROGRAMME OUTCOMES

PO 1. Apply knowledge of management theories and practices to solve business problems.

PO 2. Foster analytical and critical thinking abilities for data-based decision making.

PO 3. Develop Value based Leadership ability.

PO 4. Understand, analyze and communicate global, economic, legal, and ethical aspects of business.
 TABLE OF CONTENTS

PAGE FACULTY
S.NO TITLE MARKS
NUMBER SIGN

1. DESCRIPTIVE STATISTICS 1

2. HYPOTHESIS-PARAMETRIC 7

3. HYPOTHESIS-NON PARAMETRIC 10

4. CORRELATION AND REGRESSION 13

FORECASTING
5. 17
FORECASTING EXTENDED
6. EXPERIMENT - 1
20

7. PORTFOLIO SELECTION 23

RISK ANALYSIS & SENSITIVITY

8. ANALYSIS
26

9. REVENUE MANAGEMENT 29

REVENUE MANAGEMENT
10. LINEAR PROGRAMMING 32
EXTENDED EXPERIMENT -2

11. TRANSPORTATAION AND ASSIGNMENT 35

NETWORKING MODEL – CRITICAL

12. PATH METHOD 38

NETWORKING MODEL – PROGRAM

13. EVALUATION AND REVIEW 41
TECHNIQUE

14. QUEUEING THEORY 44

INVENTORY MODEL – ALWAYS BETTER

15. CONTROL 47

16. EXTENDED EXPERIMENT - 3 50

Ex.No:1 DESCRIPTIVE STATISTICS

Date :

Question:

Calculate the frequency distribution and measures of central tendency from following table.

Label for Gender – 1 (Male), 2(Female)

Height in Weight in
Gender Cms Kgs
1 140 56
1 146 45
2 156 68
1 149 51
2 154 54
1 156 53
2 151 69
1 148 51
2 158 70
1 150 49
1 151 45
2 159 68
1 153 50
2 148 55
1 155 61
1 146 53
2 150 65
2 152 64
1 149 47
2 156 59

Graphically represent the variable in the form of Histogram Chart.

1
 DESCRIPTIVE STATISTICS

Aim: To calculate the descriptive statistics

ALGORITHM:

Step-1: Click start, All programs, IBM STATISTICS

Step-2: Click variable view and enter the data of gender, height and weight

Step-3: Click data view and enter gender values, height and weight.

Step-4: Select analyse icon, Select descriptive statistics and select frequencies

Step-5: Click statistics, select Mean, median, mode and also check display frequency table
column

Step-6: Go to chart, select histogram and give ok

Step-7: Output will be displayed in the output window

INTERPRETATION

Height Weight

Mean : 151.35 56.65

Median : 151.00 54.60

Mode : 156 45

RESULT:

Thus the descriptive statistics is calculated.

2
 OUT PUT

Frequencies:
Statistics

Gender Height in cm Weight in gm

N Valid 20 20 20

Missing 0 0 0

Mean 1.45 151.35 56.65

Median 1.00 151.00 54.50

a
Mode 1 156 45

Skewness .218 -.436 .306

Std. Error of Skewness .512 .512 .512

a. Multiple modes exist. The smallest value is shown

Frequency:

Height in cm

Cumulative
Frequency Percent Valid Percent Percent

Valid 140 1 5.0 5.0 5.0

146 2 10.0 10.0 15.0

148 2 10.0 10.0 25.0

149 2 10.0 10.0 35.0

150 2 10.0 10.0 45.0

151 2 10.0 10.0 55.0

152 1 5.0 5.0 60.0

153 1 5.0 5.0 65.0

154 1 5.0 5.0 70.0

155 1 5.0 5.0 75.0

156 3 15.0 15.0 90.0

158 1 5.0 5.0 95.0

159 1 5.0 5.0 100.0

3
 Statistics

Gender Height in cm Weight in gm

N Valid 20 20 20

Missing 0 0 0

Mean 1.45 151.35 56.65

Median 1.00 151.00 54.50

a
Mode 1 156 45

Skewness .218 -.436 .306

Std. Error of Skewness .512 .512 .512

Total 20 100.0 100.0

Weight in gm

Cumulative
Frequency Percent Valid Percent Percent

Valid 45 2 10.0 10.0 10.0

47 1 5.0 5.0 15.0

49 1 5.0 5.0 20.0

50 1 5.0 5.0 25.0

51 2 10.0 10.0 35.0

53 2 10.0 10.0 45.0

54 1 5.0 5.0 50.0

55 1 5.0 5.0 55.0

56 1 5.0 5.0 60.0

59 1 5.0 5.0 65.0

61 1 5.0 5.0 70.0

64 1 5.0 5.0 75.0

65 1 5.0 5.0 80.0

68 2 10.0 10.0 90.0

69 1 5.0 5.0 95.0

70 1 5.0 5.0 100.0

4
 Weight in gm

Cumulative
Frequency Percent Valid Percent Percent

Valid 45 2 10.0 10.0 10.0

47 1 5.0 5.0 15.0

49 1 5.0 5.0 20.0

50 1 5.0 5.0 25.0

51 2 10.0 10.0 35.0

53 2 10.0 10.0 45.0

54 1 5.0 5.0 50.0

55 1 5.0 5.0 55.0

56 1 5.0 5.0 60.0

59 1 5.0 5.0 65.0

61 1 5.0 5.0 70.0

64 1 5.0 5.0 75.0

65 1 5.0 5.0 80.0

68 2 10.0 10.0 90.0

69 1 5.0 5.0 95.0

70 1 5.0 5.0 100.0

Total 20 100.0 100.0

5
Histogram:

6
Ex.No:2 HYPOTHESIS-PARAMETRIC

Date :

Question:

The life time of tube for a random sample of 20 provides following figures:

Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Life (in
years) 5 6 6 5 2 3 7 7 5 6 6 6 6 9 6 7 9 59 5 5

Null hypothesis: Average Life of tube is 5 years

Analyze the above problem through T test

7
 HYPOTHESIS-PARAMETRIC

AIM:

To calculate the average life of tube through T-test

ALGORITHM:

Step-1: Click Start button. All programs, IBM STATISTICS

Step-2: Click variable view and create variables and click data view enter life of tubes

Step-3: Then select analyze, click One-sample T test, a dialogue box will appear

Step-4: Select the test variable and enter the test value as 5 then click OK

Step-5: Finally the output will be displayed in the output window.

INTERPRETATION:

Null Hypothesis H0 – There is no significant difference

Alternative Hypothesis H1 - There is a significant difference

The significant value (0.030) is less than 0.05, the null hypothesis is rejected and alternative
hypothesis is accepted.

Hence there is a significant difference.

RESULT:

Thus the average life of the tube is calculated through T-test.

8
 OUTPUT

T-Test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

Life in years 20 5.8050 1.53673 .34362

One-Sample Test

Test Value = 5

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

Life in years 2.343 19 .030 .80500 .0858 1.5242

9
Ex.No:3 HYPOTHESIS-NON PARAMETRIC

Date :

Question:

The sales of two retails stores of Delhi (store1) and Mumbai (store2) are compared by Ganesh.
The sales are in Rs.Lacs. There are 20 respondents, 10 from each store. Apply Mann – Whitney
non-parametric t-test of independent groups to prove the hypothesis.

Null hypothesis: There exists no significant difference in the sales of two retails shop

Alternative hypothesis: There exists significant difference in the sales of two retails shop.

Retail store 1 2 1 1 2 2 2 1 2 1
Sales (Rs 40 30 60 45 55 25 60 80 100 20
Lacs)

Retail store 2 1 1 2 1 1 2 2 1 2
Sales (Rs 10 80 85 90 120 85 60 55 56 25
Lacs)

10
 HYPOTHESIS-NON PARAMETRIC

AIM:

To test the hypothesis of the sales by using Mann-Whitney U Test.

ALGORITHM:

Step-1: Click Start button. All programs, IBM STATISTICS

Step-2: Click variable view and create variables and click data view enter life of tubes

Step-3: Then select analyze, click Nonparametric, and click 2 independent samples to get the
dialogue box

Step-4: Select variable and move it to Test Variable List box

Step-5: Click define Groups, assign code 1 to group 1 and 2 to group 2 and click continue button

Step-6: Click options button, select Descriptive and Quartiles options in statistics frame by
clicking them

Step-7: Click continue button to go back to the previous dialogue box and keeping all other
options unchanged click OK

Step-8: The output will appear in output window

INTERPRETATION:

The calculated value (0.288) is greater than 0.05 the null hypothesis is accepted.

Hence there is no significant difference in the sales of two retails shop.

RESULT:

Thus the hypothesis is tested by using Mann-Whitney Non-parametric T-Test

11
 OUTPUT

NPar Tests

Descriptive Statistics

Percentiles

N Mean Std. Deviation Minimum Maximum 25th 50th (Median) 75th

Sales (RS Lacs) 20 59.05 29.266 10 120 32.50 58.00 83.75

Retail Store 20 1.50 .513 1 2 1.00 1.50 2.00

Mann-Whitney Test

Ranks

Retail
Store N Mean Rank Sum of Ranks

Sales (RS Lacs) 1 10 11.90 119.00

2 10 9.10 91.00

Total 20

b
Test Statistics

Sales (RS Lacs)

Mann-Whitney U 36.000

Wilcoxon W 91.000

Z -1.061

Asymp. Sig. (2-tailed) .288

a
Exact Sig. [2*(1-tailed Sig.)] .315

a. Not corrected for ties.

b. Grouping Variable: Retail Store

12
Ex.No:4 CORRELATION AND REGRESSION

Date :

Question:

Twenty students have taken their common entrance test after their graduation. The
selection committee wants to see the relationship between the scores of CET and the
percentage achieved in graduation through correlation analysis.

Frame a hypothesis and show the type of relationship (positive or negative relationship)
between the variables.

CET % in UG
Scores degree
70 71
60 82
65 73
68 64
70 75
75 69
87 75
89 88
90 90
96 90
97 88
65 82
80 73
86 74
77 65

13
 CORRELATION AND REGRESSION

AIM:

To find relation between the CET Scores and % in UG degree

ALGORITHM:

Step-1: Click start button, All programs, IBM STATISTICS, Create a new document

Step-2: Click variable view and create variables

Step-3: Click data view and enter the CET Scores and % in UG degree

Step-4: Click analyse icon, select correlate then click bivariate

Step-5: In bivariate dialog box, select the variables, click Pearson and click ok button.

Step-6: The output for the correlation will be displayed

Step-7: To find regression, click again analyse icon from the output window, click regression,
select linear.

Step-8: In regression dialog box, select the dependent and independent variable and click ok

Step-9: The output for the regression will be displayed

INTERPRETATION:

Hypothesis:

H0: There is no significant relationship between the CET Score and the UG percentage

H1: There is a significant relationship between the CET Score and the UG percentage

The calculated value (0.031) is less than table value 0.05 so alternative hypothesis is accepted.

Hence there is a significant relationship between the CET Score and the UG percentage

RESULT:

Thus the relation between the CET Scores and % in UG degree is found

14
 OUTPUT

Correlation:

Particulars CET Scores % in UG degree

*
CET Scores Pearson Correlation 1 .482

Sig. (2-tailed) .031

N 20 20
*
% in UG degree Pearson Correlation .482 1

Sig. (2-tailed) .031

N 20 20

*. Correlation is significant at the 0.05 level (2-tailed).

Regression:

b
Variables Entered/Removed

Variables Variables
Model Entered Removed Method

a
1 % in UG degree . Enter

a. All requested variables entered.

b. Dependent Variable: CET Scores

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

a
1 .482 .233 .190 .459

a. Predictors: (Constant), % in UG degree

15
 b
ANOVA

Model Sum of Squares df Mean Square F Sig.

a
1 Regression 1.152 1 1.152 5.458 .031

Residual 3.798 18 .211

Total 4.950 19

a. Predictors: (Constant), % in UG degree

b. Dependent Variable: CET Scores

a
Coefficients

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) -6.527 3.416 -1.911 .072

% in UG degree .053 .023 .482 2.336 .031

a. Dependent Variable: CET Scores

16
Ex.No:5 FORECASTING

Date :

Question:

Tata Consulting Services Profit since March 2009-12 is shown in the following table:

Time
Sl.No Profit(in RS.Cr) Period
1 4696.21 Mar-09
2 5618.51 Mar-10
3 7569.99 Mar-11
4 10975.98 Mar-12

Calculate the Profit for March 2013 by using Forecasting Method.

17
 FORECASTING

AIM:

To find out profit for March 2013 of TCS by Forecasting Method

ALGORITHM:

Step-1: Click start, All Programs, Microsoft Office, Microsoft office Excel

Step-2: Enter the given data

Step-3: Type the predict value of known X in B6th cell as “March 2013”

Step-4: Type the forecast formula in A6th cell as “=FORECAST (B6,A2:A5,B2:B5)” press enter

Step-5: The predicted value of Y will appear in the A6th cell.

INTERPRETATION:

The profit for March 2013 is 12413.74665

RESULT:

Thus the predict value of known Y using Forecasting Analysis for the year March 2013 is
calculated.

18
 OUTPUT

Time
Sl.No Profit(in RS.Cr) Period
1 4696.21 Mar-09
2 5618.51 Mar-10
3 7569.99 Mar-11
4 10975.98 Mar-12
12413.74665 Mar-13

19
Ex.No:6 FORECASTING EXTENDED EXPERIMENT - 1

Date :

The quantity of sales of a department store for the last 5 years is as follows:

Quantity of Sales (in Units)

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
48000 58000 57000 65000 2010
50000 61000 59000 68000 2011
52000 62000 59000 69000 2012
52000 64000 60000 73000 2013
53000 65000 60000 75000 2014

Forecast the sales for the year 2015 for each quarters.

20
 FORECASTING EXTENDED EXPERIMENT - 1

AIM:

To find the quantity of sales for the year 2015 for 4 quarters by using forecasting method.

ALGORITHM:

Step-1: Click Start, All Programs, MS.Office, MS.Excel

Step-2: Enter the given data

Step-3: Type the predict value of known X in E7th cell as 2015

Step-4: Type the forecast formula in A7th cell as “=FORECAST (E7,A2:A6,E2:E6)” and then
press enter

Step-5: The predicted value of Y will appear in the A7th cell

Step-6: Similarly calculate the predicted value for the remaining 3 quarters.

INTERPRETATION:

The quantities of sales for the year 2015 for 4 quarters are 54600, 67100, 61100, and 72500

RESULT:

Thus the predicted Quantity of sales by using forecasting method is calculated.

21
 OUTPUT

Quantity of Sales (in Units)

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
48000 58000 57000 65000 2010
50000 61000 59000 68000 2011
52000 62000 59000 69000 2012
52000 64000 60000 73000 2013
53000 65000 60000 75000 2014
54600 67100 61100 77500 2015

22
Ex.No: 7 PORTFOLIO SELECTION

Date :

Question:

Raja purchased 100 shares of stock at a cost of Rs.55 per share. To hedge the risk that the stock
may decline in value, he purchased 60 six-months European put option. Each option has an
exercise price of Rs.45 and costs Rs.5. How can he develop a worksheet that indicates 6 months
percentage returns on his portfolio for a variety of possible future prices?

23
 PORTFOLIO SELECTION

AIM:

To calculate the percentage return on both hedged and unhedged portfolio.

ALGORITHM:

Step-1: Click Start, All Programs, MS.Office, MS.Excel

Step-2: Enter the given data

Step-3: Calculate the Start value by using the formula =(Nshares*Pricenow)+(Nputs*putcost)

Step-4: Create five columns for Final Stock Price, Final Put Value, Final Share Value,
Percentage Return Hedged and Percentage Return unhedged respectively

Step-5: Assume the Final stock price from Rs.20 to Rs.65

Step-6: Calculate final put value by using the formula =(IF(A8<=exercise, exercise-
A8,0))*Nputs

Step-7: Calculate final share value by using the formula =Nshares*A8

Step-8: Calculate Percentage Return Hedged by using the formula =((C8+B8)-

Startvalue)*100/Startvalue

Step-9: Calculate Percentage Return unhedged by using the formula =(C8-

Nshares*Pricenow)*100/(Nshares*Pricenow)

Step-10: Output will be displayed

INTERPRETATION:

If stock price drops below exercise price then the hedged portfolio has a larger expected return
than the unhedged portfolio.

If the stock price increase above the exercise price then the unhedged portfolio has a larger
expected return than the hedged portfolio.

RESULT:

Thus the percentage returns on both hedged and unhedged portfolio is calculated.
24
 OUTPUT

Nputs 60

Nshares 100

Exprice 45

Pticenow 55

Putcost 5

Startvalue 5800

Final Stock Price Final Put Value Final Share value Percentage Return Hedged Percentage Return Unhedged

20 1500 2000 -39.66 -63.64

25 1200 2500 -36.21 -54.55

30 900 3000 -32.76 -45.45

35 600 3500 -29.31 -36.36

40 300 4000 -25.86 -27.27

45 0 4500 -22.41 -18.18

50 0 5000 -13.79 -9.09

55 0 5500 -5.17 0.00

60 0 6000 3.45 9.09

65 0 6500 12.07 18.18

25
Ex. No: 8 RISK ANALYSIS & SENSITIVITY ANALYSIS

Date :

Question:

The loan details of Mr.Ramesh are given below:

Loan Amount : Rs.20000

Interest Rate : 6.80% per annum

Term : 60 Months

Find the repayment amount using PMT ()

26
 RISK ANALYSIS & SENSITIVITY ANALYSIS

AIM:

To find the repayment amount by using PMT

ALGORITHM:

Step-1: Click Start, All Programs, MS.Office, MS.Excel

Step-2: Enter the given data

Step-3: Click cell B4 and on the main menu click Insert function (fx)

Step-4: In select a category list click Financial, in the Function Name list double click PMT

Step-5: Click the box of Rate and on the worksheet click cell B2 and type /12

Step-6: Click the box of Nper and on the worksheet click cell B3

Step-7: Click the box of Pv and type – and on the worksheet click cell B1 and click OK

Step-8: The repayment amount will be displayed in B4th cell

INTERPRETATION:

The repayment amount is 394.14

RESULT:

Thus the repayment amount is calculated by using PMT

27
 OUTPUT

Loan Amount 20000

Interest Rate 6.80%

Term 60

Repayment 394.14

28
Ex.No:9 REVENUE MANAGEMENT

Date :

Question:

The current price and quantity is given below for ABC Company :

Current Price : Rs.2.14

Quantity : 560

The firm wants to increase the revenue by changing the price with .23 paise and quantity 20.

What will be the maximum revenue to the company?

29
 REVENUE MANAGEMENT

AIM:

To find the maximum revenue for ABC Company.

ALGORITHM:

Step-1: Click Start, All Program, Ms Excel

Step-2: Create Column for price, quantity and revenue

Step-3: Select the Midpoint and give value for price & quantity

Step-4: Calculate Revenue by using the formula: Price*Quantity

Step-5: Drag the value for remaining revenue

Step-6: Point out the Maximum Revenue value and Original Price

INTERPRETATION:

The maximum revenue for the company is 1599.8

RESULT:

This the Maximum Revenue and original price for the product of ABC Company is calculated

30
 OUTPUT

Price Quantity Revenue

2.14 560 1198.4
2.37 540 1279.8
2.6 520 1352
2.83 500 1415
3.06 480 1468.8
3.29 460 1513.4
3.52 440 1548.8
3.75 420 1575
3.98 400 1592
Maximum
4.21 380 1599.8 Revenue
4.44 360 1598.4 Original Price
4.67 340 1587.8
4.9 320 1568
5.13 300 1539
5.36 280 1500.8
5.59 260 1453.4
5.82 240 1396.8
6.05 220 1331
6.28 200 1256
6.51 180 1171.8
6.74 160 1078.4

31
Ex.No:10 EXTENDED EXPERIMENT -2

Date :

Question:
Linear Programming – Minimizing
To obtain feasible solution through Linear Programming using TORA
Problem:
Minimize Z = 2x1+3x2
Subject to x1=x2>=5
X1=2x2>=6
And x1,x2>=0

32
 LINEAR PROGRAMMING
AIM:
To obtain feasible solution through Linear Programming using TORA

ALGORITHM:
Step-1: Click TORA Software in Desktop
Step-2: In main menu click module, select Linear programming
Step-3: Enter problem title as “Linear Programming” and Give the title in the name of Linear
Programming
Step-4: Enter the X1 and X2 Values
Step-5: Click solve in the top menu
Step-6: The output will be displayed in the output window.

INTERPRETATION:
X1 6.000
Slack 1 1.000
Z 12.000

RESULT:
Thus the minimum feasible solution is obtained.

33
OUTPUT

34
Ex.No :11 TRANSPORTATAION AND ASSIGNMENT

Date :

Question:

A Texas company is shipping units from three factories to five distribution centre. The
supply at each of the factories and the demand at each of the centre are given. The total supply
and demand are equal. The cost to ship one unit from each factory to each distribution centre is
given below.

Factories Centre 1 Centre 2 Centre 3 Centre 4 Centre 5 Supply

F1 20 48 10 30 40 100

F2 70 60 55 90 70 80

F3 45 80 50 30 60 150

Demand 50 70 65 55 90 330

Calculate the Total Cost for shipping.

35
 TRANSPORTATAION AND ASSIGNMENT

AIM:

To calculate the total cost for shipping to five distribution centre of Texas company.

ALGORITHM:

Step 1: Click TORA Software in Desktop.

Step 2: In the main menu select  Transportation Model

Step 3: Enter the problem title, sources and destination.

Step 4: Enter the given data in appropriate cells.

Step 5: Click Solve.

Step 6: Total shipping cost will be displayed.

INTERPRETATION

Total shipping cost is Rs. 13375.

RESULT

Thus the total shipping cost for Texas Company is calculated.

36
OUTPUT

37
Ex.No :12(a) NETWORKING MODEL – CRITICAL PATH METHOD

Date :

Question:

A project consists of 7 activities for which the relevant data are given below.

Activity Preceding Activities Duration in Hrs

A - 4

B - 7

C - 6

D A,B 5

E A,B 7

F C,D,F 6

G C,D,E 5

Find the critical path.

38
 NETWORKING MODEL – CRITICAL PATH METHOD

AIM:

To find the critical path for the project.

ALGORITHM:

Step 1: Click TORA Software in Desktop.

Step 2: In the main menu select Project Planning Module  Choose CPM-Critical Path Method.

Step 3: Enter the problem title and number of activities.

Step 4: Enter the name of the activity, its duration and its preceding activity.

Step 5: Click Solve.

Step 6: The Critical Path will be displayed.

INTERPRETATION

The Critical Path is B,F.

39
RESULT

Thus the Critical Path is calculated.

OUTPUT

*** CRITICAL PATH METHOD (CPM) ***

--------------------------------------------------------------------------
PROBLEM NAME: CPM
--------------------------------------------------------------------------

Activity Earliest Earliest Latest Latest

Activity Duration Start Finish Start Finish Slack

A 4.00 0.00 4.00 2.00 6.00 2.00

B 7.00 0.00 7.00 0.00 7.00 0.00
C 6.00 0.00 6.00 1.00 7.00 1.00
D 5.00 4.00 9.00 8.00 13.00 4.00
E 7.00 4.00 11.00 6.00 13.00 2.00
F 6.00 7.00 13.00 7.00 13.00 0.00
G 5.00 7.00 12.00 8.00 13.00 1.00

--------------------------------------------------------------------------

PROJECT DURATION: 13.

CRITICAL PATH(S):

B F

40
Ex.No :12(b) Networking Model – Program Evaluation and Review Technique

Date :

Question:

A project consists of 8 activities for which the relevant data are given below.

Optimistic Most Likely Pessimistic

Activity Preceding Activities
Time(in Hrs) Time(in Hrs) Time(in Hrs)

A - 1 1 7

B - 1 4 7

C - 2 2 8

D A 1 1 1

E B 2 5 14

F C 2 5 8

G D&E 3 6 15

H F&G 1 2 3

Find the expected project completion time using PERT.

41
 Networking Model – Program Evaluation and Review Technique

AIM:

To find the expected project completion time using PERT.

ALGORITHM:

Step 1: Click Start ----> All Programs ----> POM Software Library.

Step 2: In the main menu select Module ----> PERT.

Step 3: Enter the problem title and number of activities.

Step 4: Enter the name of the activity, its optimistic, pessimistic, most likely time and its
preceding activity.

Step 5: Click Solve.

Step 6: The Project Completion Time will be displayed.

INTERPRETATION:

The Project Completion Time is 12 Hours.

RESULT:

Thus the Project Completion Time is calculated using PERT.

42
 OUTPUT
*** PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) ***
--------------------------------------------------------------------------
PROBLEM NAME: PERT
--------------------------------------------------------------------------

Optimistic Most Likely Pessimistic Mean

Activity Time Time Time Time Variance

A 1.00 1.00 7.00 2.00 1.00

B 1.00 4.00 7.00 4.00 1.00
C 2.00 2.00 8.00 3.00 1.00
D 1.00 1.00 1.00 1.00 0.00
E 2.00 5.00 14.00 6.00 4.00
F 2.00 5.00 8.00 5.00 1.00
G 3.00 6.00 15.00 7.00 4.00
H 1.00 2.00 3.00 2.00 0.11

Earliest Earliest Latest Latest

Activity Start Finish Start Finish Slack

A 0.00 2.00 2.00 4.00 2.00

B 0.00 4.00 0.00 4.00 0.00
C 0.00 3.00 2.00 5.00 2.00
D 2.00 3.00 4.00 5.00 2.00
E 4.00 10.00 4.00 10.00 0.00
F 4.00 9.00 5.00 10.00 1.00
G 4.00 11.00 5.00 12.00 1.00
H 10.00 12.00 10.00 12.00 0.00

--------------------------------------------------------------------------

EXPECTED PROJECT DURATION: 12.

CRITICAL PATH(S):

B E H

Variance of critical path: 5.111

Standard deviation: 2.261
Customer required time: 10
Number of standard deviations off required time: 0.885

43
Ex.No :13 QUEUEING THEORY

Date :

Question:

A TV repair man finds that the time spend on his job has an exponential distribution with
mean 30 minutes, if he repair sets in the order in which they came in and if the arrival of sets is
approximately Poisson with an average rate of 10 per 8 hour a day, What is the repairman’s
expected idle time each day?

44
 QUEUEING THEORY

AIM:

To find the probability of repair man’s idle time each day.

ALGORITHM:

Step 1: Click Start ----> All Programs ----> POM Software Library.

Step 2: In the main menu select Module ----> Waiting Lines.

Step 3: Enter the problem title, enter the appropriate values and select single channel model.

Step 4: Click Solve.

Step 5: The Probability of Idle time of TV repairman will be displayed.

INTERPRETATION:

The probability of idle time of TV repairman is 0.3750

RESULT:

Thus the probability of repair man’s idle time is calculated.

45
 OUTPUT

*** WAITING LINE MODELS ***

--------------------------------------------------------------------------
PROBLEM NAME: Queueing Theory
--------------------------------------------------------------------------

MODEL: Single Channel

Arrival Rate (lambda) = 10

Service Rate (mu) = 16

Average Number of Units in Waiting Line = 1.0417

Average Number of Units in System = 1.6667
Average Waiting Time in Line = 0.1042
Average Time in System = 0.1667

Probability of Idle System = 0.3750

Probability of 1 units in the system = 0.2344

Probability of 2 units in the system = 0.1465
Probability of 3 units in the system = 0.0916
Probability of 4 units in the system = 0.0572
Probability of 5 units in the system = 0.0358
Probability of 6 units in the system = 0.0224
Probability of 7 units in the system = 0.0140

--------------------------------------------------------------------------

46
Ex.No:14 INVENTORY MODEL – ALWAYS BETTER CONTROL

Date :

Question:

The product number, description, cost per piece and the yearly usage of Shanthi Ltd., is given
below:

Product Cost per

Product Description Yearly Usage
number Piece (Rs)
1 Spindle 0.50 1,000
2 Clamp 1.00 24
3 Pushing Clamp 0.25 12
4 Ball Bearing 3.00 50
5 Flange 10.00 300
6 Sheet Metal 7.00 4
7 Bar 0.50 10
8 Paint 6.00 300
9 Chock 20.00 7
10 Riddle 2.00 175

Categorize the inventories under ABC Analysis.

Note:

A – 0-70

B – 70-95

C – 95-100

47
 INVENTORY MODEL – ALWAYS BETTER CONTROL

AIM:

To categorize the inventories of Shanthi Ltd.,

ALGORITHM:

Step-1: Click Start, All programs, MS Office, MS Excel

Step-2: Enter the given data in the new excel sheet

Step-3: Find the yearly turnover by using the formula “=(c2*d2) and press enter

Step-4: Drag the value for remaining cells

Step-5: Find the cumulative of yearly turnover

Step-6: Find the % of yearly turnover by using the formula “=(E2/E12)*100” and press enter

Step-7: Drag the value for remaining cells

Step-8: Then click Sort and Filter icon in the menu bar, select custom sort then a dialogue box
appears

Step-9: In that column sort by select % of yearly turnover, values, in order select largest to small
and then click ok

Step-10: Find the cumulative of annual usage by using the formula and categorize the annual
turnover % based on their value

Step-11: Finally output will be displayed

INTERPRETATION:

Flange and Paint belongs to category A

Spindle, Riddle and Ball Bearing belongs to category B

And the rest of the items fall under category C

RESULT:

Thus the inventories of Shanthi Ltd., is categorized.

48
 OUTPUT

Cost % of the
Product Product Yearly Yearly Cumalative
Sequence per Yearly Category
number Description Usage Turnover %
Piece Turnover

1 5 Flange 10.00 300 3,000.00 50.0% 50.0% A

2 8 Paint 6.00 300 1,800.00 30.0% 80.0% A

3 1 Spindle 0.50 1,000 500.00 8.3% 88.3% B

4 10 Riddle 2.00 175 350.00 5.8% 94.2% B

5 4 Ball Bearing 3.00 50 150.00 2.5% 96.7% B

6 9 Chock 20.00 7 140.00 2.3% 99.0% C

7 6 Sheet Metal 7.00 4 28.00 0.5% 99.5% C

8 2 Clamp 1.00 24 24.00 0.4% 99.9% C

9 7 Bar 0.50 10 5.00 0.1% 100.0% C

Pushing
C
10 3 Clamp 0.25 12 3.00 0.1% 100.0%
Total 6,000.00 100.0%

49
Ex.No:15 EXTENDED EXPERIMENT - 3

Date :

Question:

The annual demand for an automobile component is 36000 units. The carrying cost is Rs.
0.50/unit/year, the ordering cost is Rs 25.00 per order. Find the EOQ and the Maximum
Inventory Level.

50
 INVENTORY MODEL – EOQ

AIM:

To find the EOQ and the Maximum Inventory Level.

ALGORITHM:

Step-1: Click Start, All programs, MS Office, MS Excel

Step-2: Enter the given data in the new excel sheet

Step-3: To find the Order Quantity Type the formula in B4 Cell as “=SQRT(2*B1*B3/B2)” and
press enter result will show.

Step-4: To find the annual stocking Cost type formula in B5 cell as “=B4*B2” press the enter
result shows

Step-5: To find the Expected No. of Orders per year give formula in B6 cell as “=B1/B4”

Step-6: To find the Maximum inventory level shows as the same in EOQ.

Step-7: Output of Inventory Model has been successfully created.

INTERPRETATION:

Order Quantity = 1897.367

Total Annual Stocking Cost = RS.948.68

Expected # of Orders per Year= 18.974

Maximum Inventory Level = 1897.367

RESULT:Thus the EOQ is calculated.

51
OUTPUT

ANNUAL DEMAND 36000

CARRYING COST (Unit/Year) 0.5
ORDERING COST (Rs.25/Per order) 25

Order Quantity (EOQ) 1897.367

Total Annual Stocking Cost in Rs. 948.68

Expected # of Orders per Year 18.974

Maximum Inventory Level 1897.367

Total Ordering Cost in Rs. 474.34

52