M.B.A.

DEGREE EXAMINATION, JUNE 2010 Second Semester BA 9226 APPLIED OPERATIONS RESEARCH FOR MANAGEMENT (Regulation 2009) Time : Three hours Maximum : 100 Marks Answer ALL Questions PART A (10 2 = 20 Marks) 1. Write down the standard form of a LP problem. 2. List the applications of operation research model. 3. Distinguish between a transportation problem and assignment problem. 4. What do you understand by Travelling Salesman Problem? 5. Define Mixed strategy in a game. 6. What is meant by mixed integer programming problem? 7. Name the inventory control systems adopted in practice. 8. Define simulation. 9. What is meant by group replacement policy? 10. List the components of a queueing system. PART B (5 16 = 80 Marks) 11. (a) A firm produces three products. These products are processors on three different machines. The time required to manufacture one of each three products and the daily capacity of the three machines are given below : Machine Time per (minutes) Product Machine Capacity 1 2 3 Minutes/day M1 4 5 4 460 M2 5 - 4 480 M3 4 6 - 450 It is required to determine the daily number of units to be manufactured for each product. The profit per unit for product 1, 2 and 3 is Rs. 50 Rs. 40 and Rs. 70 respectively. It is assumed that all the products produced are consumed in the market. Formulate a LP model maximize the daily profit also determine the optimum production. (16) Or (b) (i) Find the maximum value of (12) 2132xxz+= Subject to :

. y graphicall solve , 20 0 0 12 3 30 1 21 2 2 21 + x xx x x xx (ii) Write the dual for the problem (4) Minimize 4 3 2 1 3 2 x x x x z + + = Subject to : 0,,, 10 2 20 3 2 15 3 2 4321 4321 321 321 +++ =++ ++ xxxx and x x x x

xxx xxx 12. (a) Find the basic feasible solution of the following transportation problem by VAM. Also find the optimal transportation plan (16) 1 2 3 4 5 Available A 4 3 1 2 6 80 B 5 2 3 4 5 60 C 3 5 6 3 2 40 D 2 4 4 5 3 20 Required 60 60 30 40 10 200 Total Or (b) (i) Explain transshipment model. (6) (ii) A company has surplus truck in each of the cities A,B,C,D and E and one deficit truck in each of the cities 1,2,3,4,5 and 6. The distance between the cities in kilometers in shown in matrix below. Find the assignment to trucks from cities in surplus to cities in deficit so that the total distance covered by vehicle is minimum. (10) 123456 A 12 10 15 22 18 8 B 10 18 25 15 16 12 C 11 10 3 8 5 9 D 6 14 10 13 13 12 E 8 12 11 7 13 10 13. (a) (i) Solve the following 2 n game by method of sub - game (8) Player B B1 B2 B3 Player A A1 1 3 11 A2 8 5 2 (ii) Reduce the following game by dominance property and solve it (8) Player B 12345 I13274 Player A II 3 4 1 5 6 III 6 5 7 6 5 IV 2 1 6 3 1 Or

(b) Explain the branch and bound and cutting plane algorithms for pure and mixed integer programming problem. (16) 14. (a) (i) Explain decision making under uncertainty. (4) (ii) A company has a demand of 12,000 unit / year for an item and it can product 2000 such items per month. The cost of one setup is Rs. 400 and the holding cost /unit/ month is Rs. 50. Find the optimal lot size and the total cost per year, assuming cost of one unit as Rs.5. Also find the maximum inventory, manufacturing time and total time. (12) Or (b) (i) Discuss the application of simulation techniques for decision making. (4) (ii) The demand for an item uniform at a rate of 50 units per month. The fixed cost is Rs. 80 each time a production is made. The production cost is Rs. 5 per item and the inventory carrying cost is Rs. 0.50 per item per month. If the shortage cost is Rs. 2.5 per item per month, determine how often to make a production run and of what size it should be? (12) 15. (a) Ships arrive at a port at the rate of one in every 4 hours with exponential distribution of inter arrival times. The time as ship occupies a berth for unloading has exponential distribution with an average of 10 hours. If the average delay of ships waiting for berths is to be kept below 14 hours, how many berths should be provided at the port? (16) Or (b) The cost of machine is Rs. 16,100 and its scrap value is Rs. 1,100 the maintenance costs found from experience are as follows Year : 1 2 3 4 5 6 7 8 Maintenance : 300 450 600 800 100 1200 1500 2000 When should the machine, be replaced. (16)