OR PROBLEMS

UNIT: 1

Examples of LP model formulation

1. A manufacturing company is engaged in producing three types of products: A, B, C. The

production department produces each day components sufficient to make 50 units of A,
25 units of B and 30 units of C. The management is confronted with the problem of
optimizing the daily production of the products in the assembling department, where
only 100 man-hours are available daily for assembling the man-hours are available daily
for assembling the products. The following additional info is available.
Type of product Profit contribution per unit Assembly time per product
of product (Rs.) (hrs)
A 12 0.8
B 20 1.7
C 45 2.5
The company has daily order commitment for 20 units of products A and a total of 15
units of products B and C. Formulate this problem as an LP model so as to maximize the
total profit.
2. A company has two plants, each of which procedures and supplies two products A and
B. The plants can each work up to 16 hours a day. In plant 1, it takes three hours to
prepare and pack 1000 gallons of A and one hour to prepare and pack one quintal of B.
In plant 2, it takes two hours to prepare and pack 1000 gallons of A and 1.5hrs to
prepare and pack a quintal of B, whereas in plants 2 these costs as Rs. 18000 and Rs.
26000 resp. The co. Is obliged to produce daily at least 10 thousand gallons of A and 8
quintals of B.
Formulate this problem as an LP model to find out as to how the company should
organize it's production so that the required amounts of two products be obtained at
the minimum cost.
3. A company has two grades inspectors 1 and 2, the members of which are to be assigned
for a quantity control inspection. It is required that at least 2000 pieces be inspected per
8hour day. Grade 1 inspectors can check pieces at the rate of 40 per hour, withan
accuracy of 97%. Grade 2 inspectors check at the rate of 30 pieces per hour with an
accuracy of 95%.
The wage rate of a grade 1 inspector is Rs. 5 per hour while that of grade 2 inspector is
Rs. 4 per hour. An error made by an inspector costs Rs. 3 to the company. There are only
nine grade 1 inspectors and 11 grade 2 inspectors available to the company. The
company wishes to assign work to the available inspectors so as to minimize the total
cost of the inspection. Formulate this problem as an LP model so as to minimize the daily
inspection cost.
4. A tape recorder company manufactures model A, B and C which have profit contribution
per unit of Rs. 15, Rs. 40 and Rs. 60 resp. The weekly minimum production requirements
 are 25 units for model A, 103 units for model B, 55 units for model C. Each type of
recorder requires a certain amount of time for the manufacturing of the component
parts for assembling and packing. Especially a dozen units of model A requires 4 hrs for
manufacturing, 3 hrs for assembling and 1 hr for packaging. The corresponding figures
for a dozen units of model B are 2.5,4 and 2 and for a dozen unit of model C are 6,9 and
4. During the forthcoming week, the company has available 130 hrs of manufacturing,
170 hrs of assembling and 52hrs of packaging time. Formulate this problem as a LP
model to maximize the total profit to the company.
5. A plastic products manufacturer has 1200 boxes of transparent wrap in stock at one
factory and another 1200 boxes at its second factory. The manufacturer has orders for
this product from three different retailers is as follows.
Retailer 1 Retailer 2 Retailer 3
Factory A 14 11 13
Factory B 13 13 12
Determine a minimum cost Shipping schedule for satisfying all demands from current
inventory. Formulate LP model.
Examples on maximization LP problem

1. Use the graphical method to solve the following LP problems.

Maximize Z=15x1+10x2
Subject to constraints
(i) 4x1+6x2≤360
(ii) 0x1+5x2≤200
(iii) 3x1+0x2≤180 x1,x2≥0
2. Solve the following LP problem graphically.
Maximize Z= -x1+2x2
Subject to constraints
(i) x1-x2≤-1
(ii) -0.5x1+x2≤2 x1, x2≥0
3. Amita electric company produces two products P1 and P2. Products are produced and
sold on weekly basis. The weekly production cannot exceed 25 for product P1 and 35 for
product P2 because of limited available facilities. The company employs total of 60
workers. Product P1 requires 2 man weeks of labor while P2 requires our man week of
labor profit margin of P1 is Rs-60 and on P2 is Rs-40. Formulate this problem as an LP
problem and solve that using graphical method.

Examples on minimization LP problem

4. Use the graphical method to solve the following LP problem
Minimize Z=3x1+2x2
Subject to constraints
(i) 5x1+x2≥10
(ii) x1+x2≥6
 (iii) x1+4x2≥12 x1,x2≥0
5. G.J. Brewries Ltd. has two bottling plants, one located at G and the other at J. Each plant
produces 3 drinks A,B,C resp. the no of bottles produced per day are shown in the table
Drink Plant at
s
G J
A 150 150
0 0
B 300 100
0 0
C 200 500
0 0

A market survey indicates that during the month of July there will be a demand of
20,000 bottles of A, 40,000 of B and 44,000 bottles of C. The operating cost for plants of
G and J are 600 and 400 monetary units for how days each plant be run in July so as to
minimize the production cost, while still meeting the market demand? Formulate this
problem as an LPP and solve that using graphical method?
6. A diet for sick person must contain at least 4,000 units of vitamins, 50 units of minerals
and 1400 calories two foods A and B are available at the cost of Rs 4 and Rs3 per unit
resp. If one of A contains 200 units of vitamins, 1 unit of mineral and 40 calories and 1
unit of food B contains 100 unit of vitamins, 2 units of minerals and 40 calories.
Formulate this problem as an LPP and solve that using graphical method to find
combination of foods to be used to have least cost.
Examples on mixed constraints on LP problems
7. A firm plans to purchase at least 200 quintals of scrap containing high quality metal X
and low quality metal Y. It decides that the scrap to be purchased must contain at least
100 quintals of metal X and not more than 35quantials of metal Y. The firm can purchase
the scrap from 2 suppliers (A and B) in unlimited quintals. The percentage of X and Y
metals in terms of weight in the scrap supplied by A and B is given below:
Metal Supplier Supplier
s A B
X 25% 75%
Y 10% 20%

The price of A’s scrap is RS-200 per quintal and that of Bis 400 per quintal. The firm
wants to determine the quintals that it should buy from the 2 suppliers so that the total
cost is minimized.
8. Use the graphical method to solve the following problem
Minimize Z=20x1+10x2
Subject to constraints
(i) x1+2x2≤40
 (ii) 3x1+x2≤30
(iii) 4x1+3x2≥60 x1, x2≥0
9. A firm makes two products X and Y has a total production capacity of tones per day.
Both X and Y requires the same production capacity. The firm has a permanent contract
to supply at least 2 tones of X and at least 3 tones of Y per day to another company.
Each tones of X requires 20 machine hours of production time and each tone of Y
requires 50 machine hours of production time. The daily maximum possible no of
machine hours is 360. All of the firms output can be sold. The profit made is Rs80 per
ton of X and Rs 120 per ton of Y. Formulate this problem as an LP model and solve it by
usin
10. g graphical method to determine the production schedule that yields the max profit.

UNIT 2
SIMPLEX LPP ALGORITHM

1. Express LPP in standard form by introducing slack or surplus and artificial variables.
Assign coefficient Cj to the objective function.
2. Write the initial simplex table and obtain initial basic feasible solution.
3. Compute Zj and Cj –Zj values.
4. Is the prob of max or min
a. If maximization, Select key col with largest +ve Cj-Zj value.
b. If minimization, Select key col with most –ve Cj-Zj value.
5. Select key row with min non-negative bj/aij. If all rations are –ve or infinity the current sol
is unbounded and stop computations.
6. Identify key element at the intersection of key row and key col.
7. Divide all elements of key row by key elements to get modified key row for next simplex
table.
8. Write the new simplex table by performing elementary row operations for remaining
rows.
Ra (new) = Ra (old) – X Rkey (old)
Ra (new) = Ra (old) – (No. in key row X Rkey (new)
9. Compute Zj and Cj-Zj
10. Cj-Zj≤0 (Maximization) Yes optimal sol
No repeat step 4
Cj-Zj≥0 (minimization) Yes optimal sol
No repeat step 4

Simplex algorithm (Maximization case)

1. Use the simplex method to solve the following LP problem
Maximize Z=3x1+5x2+4x3
Subject to constraints
(i) 2x1+3x2≤8
 (ii) 2x2+5x3≤10
(iii) 3x1+2x2+4x3≤15 x1,x2,x3≥0
2. A company makes two kinds of leather belt A and belt B. Belt A is a high quality belt and
B is of low quality. T he respective profits are Rs 4 and Rs3 per belt. The productions of
each type A requires twice as much time as a belt of type B and if all belts were of type
B, the company could make 1000 belts per day. The supply of leather is sufficient for
only 800 belts per day (both A and B combined). Belt A requires a fancy buckle and only
400 of these are available per day. There are only 700 buckles a day available for belt B.
What should be the daily production of each type of belt? Formulate this problem as an
LP model and solve it using the simplex method.
3. A pharmaceutical company has 100 kg of A 180 kg of and B 120 kg of C ingredients
available per month. The company can use these material to make three basic
pharmaceutical products namely 5-10-5,5-510 and 20-5-10 where the numbers in each
case represent the percentage of weight of A,B and C resp. in each of the products. The
cost of these raw materials is as follows.
Ingredient Cost per kg (Rs)
A 80
B 20
C 50
Inert Ingredients 20
The selling prices of these products are Rs. 40.5, Rs 43 and 45 per kg resp. There Is a
capacity instruction of the company for product 5-10-5 because of which the company
cannot produce more than 30kg per month. Determine how much of each of the
product the company should produce in order to maximize its monthly profit.
Simple algorithm (Minimization case)
Two- phase method
4. Use two phase single method to show the following LP problem
Minimize Z=x1+x2
Subject to the constraints
(i) 2x1+x2≥4
(ii) x1+7x2≥7 x1, x2≥0
5. Show the following LP problem by using the two phase simplex method
Minimize Z=x1-2x2-3x3
Subject to the constraints
(i) -2x1+x2+3x3=3
(ii) 2x1+3x2+4x3=1 x1,x2,x3≥0
6. Use two phase simplex method to solve following LP problem maximize z=3x1+2x2+2x3
Subject to the constraints
(i) 5x1+7x2+4x3≤7
(ii) -4x1+7x2+5x3≥-2
(iii) 3x1+4x2-6x3≥29/7 x1,x2,x3≥0
Big-M method
7. Use penalty (Big-M) method to solve the following LP problem
Minimize Z=5x1+3x2
Subject to the constraints
(i) 2x1+4x2≤12
(ii) 2x1+2x2=10
(iii) 5x1+2x2≥10 x1,x2≥0
8. Use penalty (Big-M) method to solve the following LP problem
Maximize Z=x1+2x2+3x3-x4
Subject to the constraints
(i) x1+2x2+3x3=15
(ii) 2x1+x2+5x3=20
(iii) x1+2x2+x3+x4=10 x1,x2,x3,x4≥0
9. ABC printing company is facing a tight financial squeeze and is attempting to cut costs
wherever possible. At present it has only one printing contract and luckily the book is
selling well in both the hardcover and the paperback form. The printing cost of the
hardcover book is Rs. 600 per 100 books which that for paperback is only Rs. 500 per
100. Although the company is attempting to economize, it does not wish to lay off any
employee. Therefore it feels obliged to run its two printing presses I and II at least 80
AND 60 hours per week resp. Press I can produce 100 hardcover books in 2 hrs 0r 100
paperback books in 1 hrs. Press II can produce 100 hardcover books in 1 hr or 100
paperbacks book in 2hrs. Determine how many books of each type should be printed in
order to minimize costs.
10. An advertising agency wishes to reach two types of audiences. Customers with annual
income greater than RS. 15000(target audience A) and customers with annual income
less than Rs15000 (target audience B). The total advertising budget is Rs 200000. One
program of TV advertising cost Rs. 50000. One program on radio advertising costs Rs
20000. For contract reasons at least three programs ought to be on Tv and the no of
radio program must be limited to 5 surveys indicates that a single TV program reaches
450000 customers in target audience A and 50000 in target audience B. One radio
program reaches 20000 in target audience A and 80000 in target audience B. Determine
the media mis to maximize the total reach.
Duality in Linear programming:
Constructing the dual from primal:
1. Write the dual of the following LP problem.
Maximize Z=x1-x2+3x3
Subject to the constraints
(i) x1+x2+x3≤10
(ii) 2x1-x2-x3≤2
(iii) 2x1-2x2-3x3≤6 x1,x2,x3≥0
2. Write the dual of the following problem.
Minimize Z=3x1-2x2+4x3
Subject to the constraints
 (i) 3x1+5x2+4x3≥7
(ii) 6x1+x2+3x3≥4
(iii) 7x1-2x2-x3≤10
(iv) x1-2x2+5x3≥3
(v) 4x1+7x2-2x3≥2 x1,x2,x3≥0
3. Obtain the dual LP problem of the following primal LP problem
Minimize Z=x1+2x2
Subject to the constraints
(i) 2x1+4x2≤160
(ii) x1-x2=30
(iii) x1≥10 x1,x2≥0
4. Obtain the dual LP problem of the following primal LP problem
Minimize Z=x1-3x2-2x3
Subject to the constraints
(i) 3x1-x2+2x3≤7
(ii) 2x1-4x2≥12
(iii) -4x1+3x2+8x3=10 x1,x2≥0, x3 unrestricted in sign
Managerial significance from duality

5. A firm manufactures two products A and B on machines I and II as shown below

Machine produc Available
t homes
A B
I 30 20 300
II 5 10 110
Profit per unit 6 8
(Rs)
The total time available is 300 hours and 110 hours on machines I and II respectively.
Products A and B contribute a profit of Rs 6 and Rs.8 per unit, respectively. Determine
the optimum product mix. Write the dual of this LP problem and give its economic
interpretation.
6. A company wishes to get at least 160 million audience exposures the no. of times one of
the ads is seen or heard by a person. Because of the nature of the product the company
wants at age. The relevant information pertaining to the two advertising media under
consideration-magazine and television is given below.
Magazin Televisio
e n
Cost per ad (Rs. thousand) 40 200
Audience per ad (million) 4 40
Audience per ad with monthly income over Rs.10,000 3 10
(million)
Audience (per ad) in the age group 18-40 (million) 8 10
The company wishes to determine the no of ads to be released each in magazine and
television so as to keep the ad expenditure to the minimum. Formulate this prob as a LP
 problem. What will be the minimum expenditure and its allocation among the 2 media?
Write dual of this problem .Solve the dual problem to find answer to the problem?
7. XYZ manufacturing co-operates a three shift system at one of its plants.
In a certain section of the planet, the no of operators required on each of the three
shifts is as follows.
Shift No. of
operators
Day (6.am to 2 pm) 50
Afternoon (2 pm to 10 24
pm)
Night (10 pm to 6 pm) 10
The company pays its operators at the basic rate of Rs.10 per hour for those working on
the day shift. For the afternoon and night shifts the rates are one and half times the
basic rate and twice the basic rate respectively. In agreement with each operator at the
commencement of his employment he is allocated to one of three schemes A, B or C.
They are as follows -
UNIT 3

Transportation problem
1. A company has three production facilities S1, S2 and S3 with production capacity of 7, 9
and 18 minutes (in 100s) per week of production resp. These units are to be shipped
four warehouses D1, D2, D3 and D4 with requirement of 5, 6, 7 and 14 minutes (in 100s)
per week resp. The transportation cost is(in rupees) per unit between factories to
warehouses are given in table below
D D D D Supply
1 2 3 4 (availability)
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
Demand
5 8 7 14 34
(Requirement)
Formulate this transportation problem as an LP would to minimize the total
transportation cost.
2. Use North-West corner method to find an initial basic feasible solution to the
transportation problem using data of example1
Least cost method (LCM)
3. Use LCM to find initial basic feasible solution to the transportation problem using the
data of example1
Vogel’s Approximation Method (VAM)
4. Use VAM to find the initial basic feasible solution to transportation problem using the
data of example1
5. A dairy firm has three plants located in a state. The dairy milk production at each plant
as follows: plant1: 6 million liters, plant2: 1 million liters,plant3: 10 million liters. Each
 day the firm must fulfill the needs of its four distribution centers. The minimum
requirement of each center as follows
Distribution center1: 7 million liters
Distribution center2: 5million liters
Distribution center3: 3million liters
Distribution center4: 2 million liters
Cost (in 100s) of shipping one million liter from each plant to each distribution center is
given in the following table
Plan Distribution
t center
D1 D2 D3 D4
P1 2 3 11 7
P2 1 0 6 1
P3 5 8 15 9
Find the initial basic feasible solution for given problem by using following methods
North West corner rule, LCM & VAM

TEST FOR OPTIMALITY (MODI method)

6. Apply MODI method to obtain optimal solution of transportation problem using the data
of example 1
7. A company has factories at F1, F2 and F3 that supply products to warehouses at W1, W2
and W3. The weekly capacities of the factories are 200,160 and 90 units resp. The
weekly warehouses requirement is 180,120 and 150 resp. The unit shipping costs (in Rs)
are as follows.
Factory warehouse
W1 W2 W3 suppl
y
F1 16 20 12 200
F2 14 8 18 160
F3 20 24 16 90
Deman 18 12 15 450
d 0 0 0
Determine the optimal distribution for this company in order to minimize its total
shipping cost.
8. ABC Ltd has three production shops that supply a product to five warehouses.The cost of
production varies from shop to shop and cost of transportation from one shop to a
warehouse also varies.Each shop has specific production capacity and each warehouse
has certain amount of requirement.The costs of transportation are given below:
Shop/Warehous W W W W4 W Suppl
e 1 2 3 5 y
A 6 4 4 7 5 100
B 5 6 7 4 8 125
C 3 4 6 3 4 175
Demand 60 80 85 10 70 400
 5
The cost of manufacturing the product at different production shop is
Sho Variable Fixed
p cost cost
A 14 7000
B 16 4000
C 15 5000
Find the optimum quantity to be supplied from each step to different warehouses at the
minimum total cost.
9. A company has received a contract to supply gravel to three new construction projects
located in towns A, B and C. The construction engineers have estimated that the
required amounts of gravel which will be needed at these construction projects are
Project Weekly
location requirement{truckloads}
A 72
B 102
C 41
The company has 3 gravel pits located in towns X, Y and Z. The gravel required by the
construction projects can be supplied by three pits. The amount of gravel that can be
supplied by each pit as follows:
Plant X Y Z
Amt. available 7 8 7
(Truckloads) 6 2 7
The company has computed the delivery cost from each pit to each project site. These
costs [in rs.] are shown in the following table:
Pit/Project A B C
Location
X 4 8 8
Y 1 2 1
6 4 6
Z 8 1 2
6 4
Schedule the shipment from each pit to each project in such a manner that it minimizes
the total transportation cost within the constraints imposed by pit capacities and project
requirements. Also find the minimum cost.
11. A product is manufactured at four factories A, B, C and D. Their unit production
capacities are Rs.2, Rs.3, Rs.1 and Rs.5 respectively. Their production capacities are 50,
70, 30 and 50 units respectively. These factories supply the product to four stores,
demands of which are 25, 35,105 and 20 units respectively. Unit transportation cost in
rupees from each factory to each store is given below.
Factories/Store I I II IV
s I I
A 2 4 6 1
1
B 1 8 7 5
 0
C 1 3 9 1
3 2
D 4 6 8 3
Determine the extent of deliveries from each of the factories to each of the stores, so
that the total production and transportation cost is the minimum.
12. A manufacturer wants to ship 22 loads of his product as shown below. The matrix gives
the kilometers from sources of supply to the destination.
Source/Destinatio D D D D D Supply
n 1 2 3 4 5
S1 5 8 6 6 3 8
S2 4 7 7 6 5 5
S3 8 4 6 6 4 9
Demand 4 4 5 4 8 1. \22
The shipping cost is Rs. 10 per load per km. what shipping schedule should be used in
order to minimize the total transportation cost?
13. Goods have to be transported from sources S1, S2 and S3 to destination D1, D2 and D3.
The transportation cost per unit capacities of the sources and the requirements of the
destinations are given in the following table.
D1 D D suppl
2 3 y
S1 8 5 6 120
S2 15 10 12 80
S3 3 9 10 80
Deman 15 80 50
d 0
Determine a transportation schedule so that cost is minimized.
Assignment problem
1. A computer centre has three expert programmers. The centre wants three application
programmers to be developed. The head of the computer centre after carefully studying
the programmer to be developed estimates the computer time in minutes required by
the experts for the applications programmer as follows:
Programmers
Programs/Programmer A B C
s
1 12 10 80
0 0
2 80 90 11
0
3 11 14 12
0 0 0
Assign the programmers to the programs in such a way that the total computer time is
min.
2. A department of a company has five employees with 5 jobs to be performed. The time
(in hours) that each man takes to perform each job is given in the effectiveness matrix.
 Jobs I II III IV V
A 10 5 13 15 16
B 3 9 18 13 6
C 10 7 2 2 2
D 7 11 9 7 12
E 7 9 10 4 12
How should the jobs be allocated, one per employee so as to minimize the total man
hours?
3. A solicitors firm employs typists on hourly piece rate basis for their daily work. There are
five typists and their charges and speed are different. According to an earlier
understanding only one job was given to one typist and the typist was paid for a full
hour, even if he worked for a fraction of an hour. Find the least cost allocation for the
following data.
Typist Rate per hour No. of pages
(Rs) (Typed/Hour)
A 5 12
B 6 14
C 3 8
D 4 10
E 4 11

Job No. of
pages
P 199
Q 175
R 145
S 298
T 178
4. A company operates in four territories and four salesmen available for an assignment.
The territories are not equally rich in their potential. It is estimated that a typical
salesman operating in each territory would bring in the following annual sales
Territory I II III IV
Annual sales 1,26,000 1,05,000 84,000 63,000
(Rs)
The four salesmen also differ in their ability. It is estimated that working under same
conditions their salary sales would be proportionately as follows.
Salesman A B C D
proportion 7 5 5 4
If the criterion is maximum expected total sales the intuitive answer is to assign the best
salesman to the richest territory the next best salesman to the second richest, and so on
verify this answer by the assignment technique.
5. A marketing manager has five salesmen and five sales districts considering the
capabilities of the salesmen and the nature of districts ,the marketing manager
estimates that the sales per month ( in hundred rupees) for each salesmen in each
district would be follows
 SALESMEN/District
A B C D E
s
1 32 28 40 28 40
2 40 24 28 21 36
3 41 27 33 30 37
4 22 38 41 36 36
5 29 33 40 35 39
Find the assignment of salesmen to district that will result in max sales.
6. In the modification of a plant layout of a factory four new machines M1,M2,M3, and M4
are to be installed I machine shop. There are five vacant places A, B, C, D, and E available
because of limited space machine M2 cannot be placed at C and M3 cannot be placed at
A. The cost of locating a machine of a place (in hundred rupees) is as follows.
MACHINE/Locatio A B C D E
n
M1 9 11 15 10 11
M2 12 9 - 10 9
M3 - 11 14 11 7
M4 14 8 12 7 8
Find the optimal assignment schedule.
7. An airline company has drawn up an new flight a no . out of 10. The higher the no , the
greater is the preference . A few of these flights are unsuitable to some pilots during to
domestic reasons.There have been marked with X

PILOT/Flight
1 2 3 4 5
Number
A 8 2 X 5 4
B 10 9 2 8 4
C 5 4 9 6 X
D 3 6 2 8 7
E 5 6 10 4 3
What should be the allocation of the pilots to flights in order to meet as many
preferences as possible?
8. A city corporation has decided to carry out road repairs on four main arteries of the city.
The govt has agreed to make a special grant of Rs.50 lakhs towards the cost with a
condition that the repairs are done at the lowest cost and quickest time. If the
conditions warrant, a supplementary taken grant will also be considered favorably .the
corporation has floated tenders and five contractors have sent in their bids.in order to
expedite work one road will be awarded to only one contractor.
CONTRACTORS/ROAD/ COST OF REPAIRS (RS. IN R R
R1 R4
LAKH) 2 3
1 1
C1 9 15
4 9
C2 7 1 2 19
 7 0
1 2
C3 9 18
8 1
1 1
C4 10 19
2 8
1 2
C5 10 16
5 1
(a) Find the best way of assigning the repair work to the contractors and the costs.
(b) If it is necessary to seek supplementary grants, what should be the amount sought?
(c) Which of the five contractors will be unsuccessful in his bid?
Travelling Salesman Problem:
9. A travelling salesman has to visit five cities. He wishes to start from a particular city, visit
each city once and then return to his starting point. The travelling cost (in ‘000Rs) of
each city from a particular city is given below.
From City/To
A B C D E
City
A ~ 2 5 7 1
B 6 ~ 3 8 2
C 8 7 ~ 4 7
D 12 4 6 ~ 5
E 1 3 2 8 ~
What should be the sequence of visit of the salesman so that the cost is minimum?
10. ABC Ice Cream Company has a distribution depot in Greater Kailash part I for distributing
ice-cream in South Delhi. There are four vendors located in different parts of South-Delhi
(call them A, B, C and D) who have to be supplied ice-cream every day. The following
matrix displays the distances (in Kms) between the depot and the four vendors.
Vendor Vendor Vendor Vendor
From/To Depot
A B C D
Depot - 3.5 3 4 2
A 3.5 - 4 2.5 3
B 3 4 - 4.5 3.5
C 4 2.5 4.5 - 4
What D 2 3 3.5 4 -
route
should the company van follow so that the total distance travelled is minimized?
Unit 4
Project Management
1. An assembly is to be made from two parts X and Y. Both parts must be turned on a lathe.
Y must be polished whereas X need not be polished. The sequence of activities together
with their predecessors is given below.
Activit Predecessor
y activity
A -
 B A
C A
D B
E B, C
F E
G D, F
H G
Draw a network diagram of activities for the project.
2. Listed in the table are the activities and sequencing necessary for a maintenance job on
the heat exchanges in a refinery.
Activit Predecessor
y Activity
A -
B A
C B
D B
E B
F C
G C
H F, G
I D, E, H
J I
Draw a network diagram of activities for the project.
3. Listed in the table are the activities and sequencing necessary for the completion of a
recruitment procedure for management trainers (MT) in an organization.
Activit Predecessor
y activity
A -
B A
C A
D C
E B
F C
G D, E
H G
I H
J F
K I, J
L K
M L
N J
O M, N
Draw a network diagram of activities for the project.
Critical Path Method (CPM)
4.
Activit Predecessor
y activity
A -
B A
C B
D A
E D
F E
G -
H G
I J, H
J -
K A
L C, K
M I, L
(a) Draw arrow diagram for this project.
(b) Indicate the critical path.
(c) For each non critical activity calculate total and free float.
5. Renovation of a project
Activity Duration (weeks) Immediate predecessors
A 14 -
B 4 A
C 2 B
D 1 C
E 2 A
F 3 E
G 2 E
H 4 E
I 3 H, L
J 12 K
K 4 D, F, G
L 2 J
M 2 H, L
a. Draw the network diagram showing the interrelations between the various activities
of the project.
b. Cal the minimum time that the renovation can take from the design stage.
c. Find the effect on the overall duration of the project if the estimates or tenders can
be obtained in two weeks from the contractors by reducing their nos.
d. Cal the independent float that is associated with the non-critical activities in the
network.
Project Evaluation Review Technique (PERT)
6. The following network diagram represents activities associated with a project.
 Activities optimistic time (to) pessimistic time (tp) most likely time(tm)
A (1-2) 5 10 8
B (1-3) 18 22 20
C (1-4) 26 40 33
D (2-5) 16 20 18
E (2-6) 15 25 20
F (3-6) 6 12 9
G (4-7) 7 12 10
H (5-7) 7 9 8
I (6-7) 3 5 4
(a) Expected completion time and variance of each activity.
(b) The earliest and latest expected completion times of each event.
(c) Critical path.
(d) The prob of expected completion time of the project if the original scheduled time of
completing the project is 41.5 weeks.
(e) The duration of the project that will have 95% chance of being completed.
7.
activit
Estimated Duration (weeks)
y
(i-j) Optimistic Most likely Pessimistic
1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
(a) Draw the n/w diagram of the activity in the project
(b) Find expected duration and variance for each activity. What is the expected project
length?
(c) Calculate the variance and standard duration of the project length. What is the prob
that the project will be completed?
a. At least 4 weeks earlier than expected time
b. No more than 4 weeks later than expected time
(d) If the project due date is 19weeks, what is the prob of no meeting the due date
Z: 0.50 0.67 1.00 1.33 2.00
Prob: 0.3085 0.2514 0.1587 0.0918 0.0228
Crashing
8.
Activit
Normal Crash
y
Time Cost Time Cost
(weeks) (Rs) (weeks) (Rs)
1-2 3 300 2 400
 2-3 3 30 3 30
2-4 7 420 5 580
2-5 9 720 7 810
3-5 5 250 4 300
4-5 0 0 0 0
5-6 6 320 4 410
6-7 4 400 3 470
6-8 13 780 10 900
7-8 10 1000 9 1200
Total 4220
Indirect cost is Rs 50 per week
(a) Draw the network diagram for the project and identify the critical path
(b) What are the normal project duration and association cost.
(c) Find out the total float associated with non-critical activities
(d) Crash the relevant activities and determine the optimal project completion time and
cost
9.
Activit
Immediate Normal Crash
y
Predecesso
Time Cost (Rs. Time Cost(Rs
r
(Weeks) ‘000) (Weeks) ‘000)
A - 10 20 7 30
B - 8 15 6 20
C B 5 10 4 14
D B 6 11 4 15
E B 8 9 5 15
F E 5 5 4 8
G A,D,C 12 3 8 4
73000
The indirect cost is Rs 400 per day. Find the optimum duration and the associated min
project cost.
10.
Activit Time Direct Cost(Rs
Immediate
y (months) ‘000)
Predecesso
Norma Cras
r Normal Crash
l h
A - 4 3 60 90
B - 6 4 150 250
C - 2 1 38 60
D A 5 3 150 250
E C 2 2 100 100
F A 7 5 115 175
G A,B,E 4 2 100 240
713
Indirect cost vary as follows,
Months: 15 14 13 12 11 10 9 8 7 6
 Cost (Rs): 600 500 400 250 175 100 75 50 35 25
(a) Draw an arrow diagram for the project
(b) Determine the project duration that will result in min total cost.

UNIT 5

QUEING THEORY
1. Consider a situation in which the mean arrival rate is one customer every 4 min and the
mean service time is 2 ½ min. if the waiting cost is rs.5 per unit per min and the min cost
of servicing one unit is Rs 4.find the min cost servicing rate.
2. On an average 6 customers reach a telephone booth every hour to make calls.
Determine the probability that exactly 4 customers will reach in 30 min periods
assuming that arrivals follow poison distribution.
3. In a bank 20 customers on the average are served by a cashier in an hour. If the service
time has exponential distribution, what is the probability that
a. It will take more than 10 min to serve a customer?
b. A customer shall be free within 4 min?
4. A person repairing radios finds that the time spent on the radio sets has exponential
distribution with mean 20 minutes. If the radios are repaired in the order in which they
come in and their arrival is approximately Poisson with an average rate of 15 for 8 hour
day, what is the repairman’s expected idle time each day? How many jobs are ahead of
the average set just brought in?
5. Arrival rate of telephone calls at a telephone booth are according to Poisson distribution
with an average time of 9 min between two consecutive arrivals.the length of telephone
call is assumed to be exponentially distributed with mean 3 min.
a. Determine the probability that a person arriving at the booth will have to
wait
b. Find the average queue length that is formed from time to time
c. The telephone company will install a second booth when convinced that an arrival
would expect to have to wait at least four minutes for the phone.find the increases
in flow rate of arrivals which will justify second booth.
d. What is the probability that an arrival will have to wait for more than 10 min the
phone is free?
e. What is the probability that he will have to wait for more than 10 minutes before the
phone is available and the call is also attempted?
f. Find the fraction of a day that the phone will be in use?
6. On an average 96 patients per 24 hours day require the service of an emergency clinic.
Also on the average a patient requires10 minutes of action attention. Assume that the
facility can handle only one emergency at a time. Suppose that it costs the clinic Rs.100
per patient treated to obtain an average servicing time of 10 minutes and that each
minute of decrease in this average time could cost the clinic Rs.10 per patient treated.
How much would have to be budgeted by the clinic to decrease the average size of the
queue from 1(1/3) patients to ½ patient?
7. Goods trucks arrive randomly at a stockyard with a mean of 8 trucks / hour. A crew of
four operations can unload a truck in 6 minutes. Trucks containing in queue to be
unloaded are paid a waiting charge at the rate of Rs.60 per hour. Operations are paid a
wage rate of Rs. 20 per hour. It is possible to augment the crew strength to 2 or 3(of four
operatives per crew) when the unloading time will be 4 minutes or 3 minutes
respectively per truck. Find the optimal crew size.
THEORY OF GAMES
Games with saddle point-(minimax and maximin principles)
1. For the game with payoff matrix, determine the optimal strategies for players A and B.
also determine the value of the game. Is this game (1) fair? (2) Strictly determinable?
Player A/ Player B B B
B 1 2 3
A1 -1 2 -2
A2 6 4 -6

2. A company management and the labor union are negotiating a new three year
settlement.Each of these has 4 strategies
I: Hard and aggressive bargaining.
II: Reasoning and logical approach.
III: Legalistic strategy.
IV: Conciliatory approach.
The costs to the company are given for every pair of strategy choice.
Company
strategies
Union
I II III IV
strategies
I 20 15 12 35
II 25 14 8 10
III 40 2 10 5
IV -5 4 11 0
What strategy will the two sides adopt? Also determine value of the game.
3. For what value of the game with following pay off matrix is strictly determinable?
PLAYER B
B B B
1 2 3
A
6 2
PLAYER 1
A A
-1 -7
2
A
-2 4
3

Mixed strategies – Game without saddle point

Dominance
4. Players A and B play a game in which each has 3 coins, a 5p, 10p and 20p. Each selects a
coin without knowledge of the others choice .if the sum of the coins in an odd amount,
then A wins B’s coin. But if the sum is even then B wins A’s coin. Find the best strategy
for each player and the values of the game.
Algebraic method
5. A company is currently involved in negotiation with its union on the upcoming wage
contract. Positive sings in the table represents wage increases which negative sign
represents wage reduction. What are the optimal strategies for the company as well as
the union? What is the game value?
 Conditional cost to the company (Rs in lakhs)
Union strategies
U1 U2 U3 U4
C 0.2 0.2 0.3 -
1 5 7 5 0.02
C 0.2 0.0 0.0
0.08
Company 2 0 6 8
strategies C 0.1 0.1 0.0
0.03
3 4 2 5
C 0.3 0.1 0.1
0.00
4 0 4 9

6. In a game of matching coins with two players, suppose A wins one unit of value when
there are two heads, wins nothing when there are two tails and losses half unit of value
when there is one head and one tail. Determine the payoff matrix, the best strategies for
each player and the value of the game to A.
SIMULATION
1. Using random numbers to simulate a sample, find the probability that a packet of 6
products does not contain any defective product, when the production line produces 10
percent defective products. Compare the answer with the expected probability.
2. A bakery keeps stock of popular brand of cake. Previous experience shows the daily
demand pattern for the item with associated probability, as given below
Daily demand
0 10 20 30 40 50
{no}
0.0 0.2 0.1 0.5 0.1 0.0
Probability
1 0 5 0 2 2
Use the following sequence of random numbers to simulate the demand for next ten
days.
Random numbers: 25, 39, 65, 76, 12, 05, 73, 89, 19, 49
Also estimate the daily average demand for the cakes on the basis of the simulated data.
3. A company manufactures around 200 mopeds. Depending upon The availability of raw
materials and other conditions, the daily production has been varying from 196 mopeds
to 204 mopeds whose probability distribution is given below
Production Per
196 197 198 199 200 201 202 203 204
Day
0.0 0.0 0.1 0.1 0.2 0.1 0.1 0.0 0.0
Probability
5 9 2 4 0 5 1 8 6
The finished mopeds are transported in a specially designed three storied lorry that can
accommodate only 200 mopeds. Using the following 15 random numbers: 82, 89, 78, 24,
53, 61, 18, 45, 23, 50, 77, 27, 54 and 10, Simulate the mopeds waiting in the factory?
(a) What will be the average no. of mopeds waiting in the factory?
(b) What will be the no, of empty spaces in this lorry?
QUEUING PROBLEMS
4. A dentist schedules all his patients for 30 minutes appointments. Some of the patients
take more 30 minutes and some less depending on the type of dental work to be done.
The following summary shows the various categories of work, their probabilities and
time actually needed to complete the work
Category of Time required Prob. Of
service {min} category
Filling 45 0.40
Crown 60 0.15
Cleaning 15 0.15
Extraction 45 0.10
checkup 15 0.20
Simulate the dentist’s clinic for 4 hours and determine the average waiting time for the
patients as well as the idleness of the doctor. Assume that all the patients show up at
the clinic at exactly their scheduled arrival time starting at 2:00 A. M. use the following
random numbers for handling the above problem: 40, 82, 11, 34, 25, 66, 17, and 79.
5. The management of ABC Co. is considering the question of marketing a new product.
The FC required in the project is rs.4000. Three factors are uncertain SP, VC and sales
volume. The product has life of only one year. The management has data on these three
factors
SP Prob VC Prob Sales volume Prob
[Rs] . [Rs] . [Units] .
3 0.2 1 0.3 2000 0.3
4 0.5 2 0.6 3000 0.3
5 0.3 3 0.1 5000 0.4
Considering the following sequence of 30 random numbers: 81, 32, 60, 04, 46, 31, 67,
25, 24, 10, 40, 02, 39, 68, 08, 59, 66, 90, 12, 64, 79, 31, 86, 68, 82, 89, 25, 11, 98, 16
Using the sequence [first 3 random numbers for the first trail etc simulate the average
profit for the above project on the basis of 10 trails.