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BA7206 APPLIED OPERATIONS RESEARCH
VALLIAMMAI ENGINEERING COLLEGE
DEPARTMENT OF MANAGEMENT STUDIES
BA7206-APPLIED OPERATIONS RESEARCH
UNIT I
PART A
1.

2.

3.

## Write Short note on Unbounded solution

4.

Write the Canonical form of LPP and the Standard form of LPP.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

## What is Two phase method?

19.

What do you mean by Duality? And What do you mean by Rules for primal and dual?

20.

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

1

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PART B

1)

## a) Maximise z=3x+4y subject to

2x+5y<=60,
4x+2y<=40. Solve by Graphical Method
b) Max z= 5x1+4x2 subject to
x1-2x2<=1,
x1+2x2>=3,
x1, x2>=0. Solve Graphically.

2)

## a) Min z= 20x1+10x2 subject to

x1+2x2<=40,
3x1+x2>=30,
4x1+3x2>=60,
x1,x2>=0. Solve by Graphical Method
b)Max z=300x1+400x2 subject to
2x1+3x2<=1600,
3x1+2x2<=1500,
x1+x2<=700,
X2>=300, Solve by Graphical Method.

3)

## a) Solve by Simplex method,

Max z=25x+10y subject to
x+0.5y<=20,
x+y<=50.
b) Max z = 10y1+15y2+20y3
Subject to 2y1+4y2+6Y3<=24
3y1+9y2+6y3<=30,
Y1,y2,y3>=0.

4)

## a) Solve by Big M Method

Min z=12x1+20x2 Subject to
6x1+8x2>=100,
7x1+12x2>=120,
x1, x2>=0.
b) Solve by Big M Method

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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Max Z=6x1-3x2+2x3
Subject to 2x1+x2+x3<=16,
3x1=2x2=x3<=18,
X2-2x3>=8
5) Write the dual of the following LPP and solve it .
MaxZ=4x1+2x2 Sub to the constraints
-x1-x2<=-3
-x2+x2>=-2
x1,x2>=0
6) Using dual simplex method solve the LPP.
Minimise Z=2x1+x2
3x1+2x2>=3
4x1+3x2>=6
x1+x2<=5
x1,x2>=0
7) A Plant Manufacturer 2 Product A & B. The Profit Contribution of each product has been
estimated as Rs.300 for product A and Rs.400 for Product B. Each Product passes through 3
departments of the plant. The time required for each product and total time available in each
department are as follows.
Department

Hours Required
Product A

Product B

Available
Hours during
month

1600

II

1500

III

700

## The company has a contract to supply atleast 300 units of

product B per month. Formulate the LPP and solution
through Graphical Method

8) A company produces 2 types of hats A & B. Every hat B requires twice as much as labour
time as hat A. The company can produce a total of 500 hats a day. The market limits daily sales
of the A & B to 150 and 250 hats repectively. The Profits on hats A & B are Rs.8 & Rs.5
Respectively. Solve the Optimal solution.
Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)
Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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9) A person wants to decide the constituents of a diet which will fulfill his daily requirements of
proteins, fats and carbohydrates at the minimum cost. The choice is to be made from four
different types of foods. The yields per unit of these foods are given in following table.
Formulate and solve the LPP

Food type

## Yield per unit

Proteins

Cost per

Carbohydrates unit

Fats

(Rs.)
1

45

40

85

65

Minimum

800

200

700

requirements

10) A firm produces three products. These products are processors on 3 different machines. The
time required to manufacture one unit of cost of the products and the daily capacity of the three
machines is given in the table below. Formulate and solve the LPP
Machine

Time/Unit (minutes)

Machine

Product

capacity

Min/day

M1

940

M2

970

M3

430

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

4

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Unit-II
PART A

1) Define transportation
2) What do you mean by Balanced transportation problem?
3) What do you mean by Unbalanced transportation problem?
4) What are the Phases of transportation model?
5) Define Feasible solution?
6) Write Short Note on Optimum solution in transportation.
7) What do you mean by Least cost method (LCM)?
8) What do you mean by Vogel approximation method (VAM)?
9) What is Modified distribution (MODI) method?
10) Define Degeneracy.
11) Define Transhipment.
12) What are the Differences between transportation and transhipment?
13) What do you mean by Assignment?
14) What is Balanced assignment problem?
15) What is Unbalanced assignment problem?
16) How will you resolve degeneracy in Transporation Problem?
17) What do you mean by Maximization assignment problem?
18) Write down the Steps in Hungarian algorithm?
19) Write Short Note on Branch and bound algorithm?
20) What is the Difference between assignment and transportation Problem?

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

5

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PART B

Destination
10

20

11

12

20

14

16

18

Destination
3

1

22

58

11

19

27

43

78

72

50

63

48

41

28

91

37

45

33

74

42

27

49

39

32

36

11

57

22

25

18

56

53

31

17

28

## 3) A company has a team of 4 Salesman and the company wants to do business in 4

districts. Considering the capabilities of salesmen and nature of the district, the company has
estimated the profit per day in Rs. For each salesmen in each district as follows.
Districts
Salesmen 1

16

10

14

11

14

11

15

15

15

15

13

12

13

12

14

15

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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4) A company has one surplus truck in each of the cities A, B, C, D, & E, and one deficit trucks
in each of the citites 1,2,3,4,5,6. The distance between the cities in kms is shown in the matrix below.
Find the assignment of trucks from cities in surplus to cities in deficit so that total distance covered by the
vehicles is minimum.
1

12

10

15

22

18

10

18

25

15

16

12

11

10

10

13

13

12

12

11

13

10

5) A company is faced with the problem of assigning 4 machines to 6 different jobs. The Profit
are estimated as follows. Solve the problem to maximize total profits.
Machines
Jobs

-7

Destination

Availability

D1

D2

D3

D4

O1

22

O2

15

O3

Demand

12

17

Destination

Availability

D1

D2

D3

D4

O1

22

O2

15

O3

Demand

12

17

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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8) Using MODI Method Solve the following TP

21

16

25

13

17

18

14

23

32

27

18

41

9) Using Stepping stone method find the optimum solution for the TP Cost.
Supply

11

15

Demand

10) A firm has 2 factories x & y are 3 stores A, B, C. The number of units of a product available
at factories X & Y are 200 and 300 respectively. While demanded at retail stores are 100, 150, 250
respectively. Rather than shipping directly from source to destination it is decided to investigate the
possibility of transshipment. Find the optimal shipping schedule. The TP cost in Rs./per unit are given
below.

C
X

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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Unit-III
PART A
1) What do you mean by integer programming problem?
2) In what respect a mixed IPP is differ from pure IPP.
3) What is Gomorys fractional cut algorithm or Gomorys slack?
4) What do you mean by Game?
5) What are the Characteristics of game?
6) Define Strategy.
7) Define Pure strategy.
8) Write Short Note on Mixed strategy.
10) Define Payoff matrix?
11) Define Dominance principle?
12) What is the concept of Two person zero sum game?
13) How is the concept of Game theory useful in Managerial Decision Making?
14) Define Pay off Matrix.
15) What are the basic assumptions of the Game?
16) Write down the advantages of Game theory.
17) What are the Methods of Matrices?
18) Define Graphical and LP Solutions in Game theory?

## 19) What is a Decision Tree?

20) How decision Tree analysis is used to improve the decision-making process?

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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PART B

1.

## Find the optimum integer solution

Max Z =
x1+x2
Sub to 3x1+2x2<=5
x2<=2
x1,x2 >=0 and are integers

## 2. Using Gomorys cutttting plane method ,

Max Z=2x1+2x2
Sub to 5x1+3x2<=8
2x1+4x2<=8
x1,x2 >=0 and are integers
3. Solve the game using dominance
A/B

60

50

40

70

70

50

80

60

75

Player A

4.a) Find the Value of the Game Given the following Pay Off Matrix.
Player B
B1 B2 B3
A1
-2
5
-3
A2
1
3
5
A3
-3
-7
11

Player A

b) Find the Value of the Game Given the following Pay Off Matrix.

A1
A2
A3
A4

Player B
B1 B2
0
-4
3
-5
-2
-1
1
0

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

B3
-2
1
6
4

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5. Solve the game using a graph: (8 marks)
A/B
A1
A2

B1
3
5

B2
3
4

B3
4
3

B4
0
7

B1 B2 B3 B4 B5
A1

A2

A3

A4

## b) Solve by Dominance Rule:

B1 B2 B3 B4 B5 B6
A1

A2

A3

-5

A4

-1

A5

-2

Player A
Player A

B1

B2

A1

-3

A2

A3

-1

A4

A5

A6

-5

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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8) a) In a game of matching coins with 2 players, A wins 1 unit value when there are 2 heads, wins
nothing when there are 2 tails and closes unit value when there are one head and one tail. Determine
Pay Off matrix and value.
b) Two players A&B match coins. If the coins match then A wins one unit value, if the coins do not
match then B wins one unit of value. Determine pay-off matrix.

9) A and B play a Match(Game) in which each has 3 coins 5 paise, 10 paise and 20 paise. Each player
selects a coin without the knowledge of others choice. IF the sum is even, B wins As Coin. Find the Best
Strategy & value of the Game.

B1

B2

B3

A1

11

A2

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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Unit-IV
PART A
1) Define inventory.
2) What are the Forms of inventory?
3) Write down the Objectives/significance of inventory model
4) What is Inventory Control?
6) What are the Types of stock replenishment?
7) Define the Basic inventory models.
8) What is Ordering Cost?
9) What are the models of Decision making under risk.
10) List out four advantages of Simulation Technique?
11) What is Total inventory cost?
12) Define Purchase cost.
13) What is Production cost & Total cost.
14) Define Shortage cost/stock out cost.
15) Explain the Criteria of Decision Making under Uncertainty.
16) What are the Procedures for price break model?
17) List out the problems which could be solved by simulation?
18) What is Safety Stock?
19) Define Decision theory.
20) What is the Classification of decision theory?

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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PART B

1)

a) Alpha industry needs 5400 units per year of a bought out component which will be used in its

main product. The ordering cost is Rs.250 per order and the carrying cost per unit per year is Rs.30. Find
EOQ and no. of order per year.
b)A contractor has to supply 10000 bearings per day to an automobile manufacturer. He finds that
when he starts a production run he can produce 25000 bearings per day. The cost of holding a bearing in
stock for one year is 2 paise and the set up cost of the production run is Rs.18. How frequently should
production run be made and find EBQ.

2)

a) A stockiest has to supply 12000 units of a product per year to his customer. Demand is fixed

and known. Shortage cost is assumed to be infinite. Inventory holding cost is 20 paise per unit per month.
Ordering Cost is Rs. 250 and purchase price is Rs.10 per unit. Find the EOQ & Frequency of orders.
b) A stockiest has to supply 400 units of a product every Monday to his customer. He gets the
product at Rs.50 per unit from the manufacturer. The cost of ordering and transportation from the
manufacturer is Rs.75 per order. The cost of carrying inventory is 7.5% per year of the cost of product.
Find out EOQ

3)

a) ABC manufacturing company purchases 9000 parts of a machine for its annual requirement.

Each part costs Rs.20. The ordering cost per order is Rs.15 and the carrying charges are 15% of the
average inventory per year. Find EOQ.
b) A company has a demand of 12000 units/year for an item and it can produce 2000 units per
month. The cost of one setup is Rs.400 and the holding cost/unit/month is 15 paise. Find the optimum lot
sizeand total cost per year assuming the cost of 1 unit as Rs.4. Find EBQ

4) Demand for an item in a company is 18,000 units per year. The company can produce the items at a
rate of 3000 units per month. The Cost of one setup is Rs.500 and the holding cost of one unit per month
is 15 paise. Shortage cost of one unit is Rs.20 per year. Determine the optimum manufacturing quantity
and no. of shortage.

5) Find the Optimal order quantity for a product for which the price breaks are as follows:
Quantity

Unit Cost(Rs.)

O<q<500

1000

500<=Q<=750

925

750<=Q

875

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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6) Find the optimal order quantity for a product when the annual demand for the product is 500 units. The
Cost of storage per unit per year is 10% of the unit cost. Ordering cost per order is Rs. 180. The unit cost
are given below:

Quantity

Unit Cost(Rs.)

O<q<500

25

500<=Q2<=1500

24.80

1500<=q3<3000

24.60

3000<=Q4

24.40

7) A newspaper boy has the following probability of selling a magazine. Cost of a copy is 30 paise and
sale price is 50 paise. He cannot return unsold copies. How many copies should he order?
No. Of Copies 10

11

12

13

14

Probability

0.15

0.20

0.25

0.30

0.10

## Find EVPI, EOL, EPPI

8) A newspaper boy has the following probability of selling a magazine. Cost of a copy is 30 paise and
sale price is 50 paise. He cannot return unsold copies. How many copies should he order?
No. Of Copies 10
Probability

0.10

11

12

13

14

0.15

0.20

0.25

0.30

## Find EOL and EVC

9)A Bakery keeps a stock of particular brand of cake. Daily demand of past experience:
Daily demand

15

Probability

0.01 0.15

25

35

45

50

0.20

0.50

0.12

0.02

## Consider the following sequence of random numbers.

48

78

51

56

77

15

14

68

Using this sequence simulate the demand for next 10 days. Find the stock situation if the owner makes 35
cakes everyday. Also estimate daily average demand.
10) Describe all Decision criteria under the conditions of uncertainty.
Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)
Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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Unit-V
PART - A
1. Define Queue.
2. Define Queuing theory/waiting line.
3. Define Idle time cost
4. What is Waiting time cost?
5. What are the Types of queue?
6. What are the Characteristics Of Queuing Models.?
7. Write Kendalls Notation
8. Define Replacement.
9. What is Replacement model?
10. What are the types of Replacement models?
11. What are the Difference Between IRP & GRP.
12. Define Group Replacement (GRP)
13. Define Individual relacement (IRP)
14. Write Short note on: Calling Source Or Population
15. Define Jockeying.
16. Define service discipline.
17. What is Collusion in Queue Discipline?
18. What is Group Replacement Policy?
19. When a Machine should be replaced?
20. Describe Kendalls Notation for identifying a Queue Model with two channels, Poisson arrivals,
exponential service and infinite calling population.

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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PART B
1) The cost of machine is Rs.16100 and scrap value is Rs.1100. Maintenance Cost form for machine
are as follows:
Year

Maintenance Cost

300

450

600

800

100

1200

1500

2000

## What should be the replacement year?

2) The following table gives to cost of spares per year, overhead cost of maintenance per year and resale
value of certain equipment whose purchase price is Rs 50000:
Year

Cost of Spares

Resale Value

5000

6000

6000

8000

## 40000 32000 28000 25000 22000

3) A Taxi owner estimates from his past records that the cost per year for operating a taxi whose purchase
price when new is Rs.60,000 are as follows.

Age

## Operating 10000 12000 15000 18000 20000

Cost
After 5 years the operating cost is Rs.6000 x K, Where k is 6,7,8,9,10(age). IF the resale value
decreases by 10% of purchase price each year, what is the best replacement policy?

4) A cost of a machine is 6100 and its scrap value is Rs. 100. The maintenance Cost from the experience
are as follows:
Year

Maintenance 100

250

400

600

900

1200

1600

2000

Cost
What should be the replacement year?

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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5) A desktop publisher finds from his previous records that the cost per year of using an inkjet printer
whose purchase price is Rs 7000 is as given below. Find the year of replacement
Year

Running cost 1100 1300 1500 1900 2400 2900 3500 4100
Resale price

## 3100 1600 850

475

300

300

300

300

6) Machine A Costs Rs.9000. Annual Operating Cost is Rs.200 for the 1st year and then increases by 2000
every year. Determine the best age at which to replace the machine. Assume the machine has no resale
value.
Machine B Costs Rs.10,000 . annual operating cost is Rs.400 for the 1st year and then increases
by 800 every year. No resale value. You have now a machine of type A which is one year old. Should you
replace it with B. Is so, When?
7) A self-service store employs one cashier at its counter. 9 Customers arrive on an average every 5
minutes. While the cashier can serve 10 customer in 5 minutes. Assuming poisson Distribution for arrival
rate and exponential distribution for service rate Find,
(i) Average number of customer in the system
(ii) Average Number of customer in Queue.
(iii) Average time a customer spend in the system
(iv) Average time a customer wait before being Served.

8) A super market has 2 girls running up sales at the counters. If the service time for each customer is
exponential with mean of 4 minutes and if people arrive in a poisson fashion at the rate of 10 an hour.
(a) What is the average waiting time a customer spends in the system?
(b) What is the expected percentage of Idle time for each girl?
9) A two person barber shop has five chairs to accommodate waiting customers. Potential customers
who arrive when all five chairs are full leave without entering the barbership. Customers arrive at the
average rate of 3.7674 per hour and spend an average of 15 minutes is the barber chair.
a) What is the probability a customer can get directly into the barber chair upon arrival?
b) What is the effective arrival rate?
c) How much time can a customer expect to spend in the barber shop?
d) How much time can a customer expect to spend in the barber shop?
e) What fraction of potential customer is timed away?

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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10)

## a)Find the Best Policy whether GRP or IRP.?

Week

Conditional Probability

0.07

0.15

0.25

0.45

0.75

0.9

## IRP Cost is Rs.1.25 per item

GRP Cost is Rs.60 Paise Per item.

b) Compare IRP or GRP and conclude which is best. IRP cost Rs 4/item. GRP cost is 80
paise/item.
Week

## Probability 0.09 0.25 0.49 0.85 097 1

c) There are 10000 bulbs. IRP cost is Rs 1/bulb and GRP cost 35 paise/bulb. Find out whether
IRP or GRP is best given the probability of failure.
Week

## Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)

## Department of Management Studies

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