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SMU MBA WINTER 2015 -2016
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Dear Students,

SMU MBA WINTER 2015-2016 Assignments are available. For Booking

,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M

S your Email ID us in the following Format On +91 9995105420 we will

reach back you with in 24H

MB0048-Operations Research-4 Credits

(Book ID: B1631)

Assignment (60 Marks)

Note: Answer all questions within 300 to 400 words each. Each Question

carries 10 marks 6 X 10=60

Q1. Describe the framework of Operations Research.

List the seven stages of Operations Research

Briefly explain seven stages of Operations Research

Answer. a) The basic dominant characteristic feature of operations research is that it

employs mathematical representations or models to analyze problems. This distinct

approach represents an adaptation of the scientific methodology used by the physical

sciences. The scientific method translates a real given problem into a mathematical

representation which is solved and retransformed into the original

Q2. a. Explain the graphical method of solving Linear Programming

Problem.

b. A paper mill produces two grades of paper viz., X and Y. Because of raw

material restrictions, it cannot produce more than 400 tons of grade X

paper and 300 tons of grade Y paper in a week. There are 160 production

hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade X

and Y papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade

Problem.

Explain the concept of linear programming

Describe the graphical method of solving Linear Programming Problem

Frame/formulate the LPP (Objective function & Constraints)

Answer. a) Linear programming (LP or linear optimization) is a mathematical

method for determining a way to achieve the best outcome (such as maximum profit or

lowest cost) in a given mathematical model for some list of requirements represented as

linear relationships. The procedure for

Q3. a. Explain some of the important terms of the transportation problem.

b. Explain the procedure of MODI method of finding solution through

optimality test.

List and briefly explain some of the important terms of the transportation problem

Describe the procedure of MODI method.

Answer. a) Degeneracy in transportation problem

If the basic feasible solution of a transportation problem with m origins and n

destinations has fewer than m + n 1 positive (occupied cells), the problem is said to be

a degenerate transportation problem.

Q4. a. Explain the steps involved in Hungarian method of solving

Assignment problems.

b. Find an optimal solution to an assignment problem with the following

cost matrix:

J1

J2

J3

J4

M1

10

M2

M3

M4

Solve/ Compute the solution to the problem

Answer. a). Hungarian method algorithm is based on the concept of opportunity

cost and is more efficient in solving assignment problems. Adopt the following steps

mentioned below to solve an AP using the Hungarian method algorithm:

Q5. a. Explain Monte Carlo Simulation.

b. Hindustan Bakery is popular for its delicious fruit cakes. The table below

shows the daily demand for the bakerys cakes.

Daily

Demand

Probability

15

25

35

45

50

0.01

0.15

0.2

0.5

0.12

0.02

Simulate the demand for cakes for 10 days using the following sequence of

random numbers:

22, 26, 48, 53, 93, 89, 42, 91, 25, 20

If 35 cakes are baked every day in Hindustan Bakery, determine the

inventory stock. In addition, estimate the daily average demand for cakes

on the basis of simulated data.

Explain what is Monte Carlo Simulation and list the steps of of Monte Carlo Simulation

Solve/ Compute the solution to the problem

Answer. a). Monte Carlo simulation is a computerized mathematical technique

that allows people to account for risk in quantitative analysis and decision making. The

technique is used by professionals in such widely disparate fields as finance, project

management, energy, manufacturing, engineering, research and development,

insurance, oil & gas, transportation, and the environment.

Q6. a. State the assumptions of game theory.

b. What are the characteristics of Markov chain?

c. What are the rules for prioritizing jobs?

Answer. a. In game theory one usually makes the following assumptions:

(1) Each decision maker ["PLAYER"] has available to him two or more wellspecified choices or sequences of choices (called "PLAYS").

(2) Every possible combination of plays available to the players leads to a welldefined end-state (win, loss, or draw) that terminates the game.

Dear Students,

SMU MBA WINTER 2015-2016 Assignments are available. For Booking

,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420 or S M

reach back you with in 24H

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