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# SMU MBA SPRING 2016-2017

Dear Students,
SMU MBA SPRING 2016 Assignments are available. For Booking ,Kindly
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DRIVE SPRING 2016
PROGRAM MBA
SEMESTER II
SUBJECT CODE &
NAME
MB0048
OPERATIONS RESEARCH
1 Discuss the various stages involved in the methodology of Operations Research. Briefly
explain the techniques and tools of Operations Research.
[Operations Research Methodology-5
Techniques and tools of Operations Research-5]
Definition: The first and the most important step in the OR approach of problem solving is to define
the problem. One needs to ensure that the problem is identified properly because this problem
statement will indicate the following three major aspects:
Description of the goal or the objective of the study
Identification of the decision alternative to the system
Recognition of the limitations, restrictions, and requirements of the system
Construction:

2 a. Explain the steps involved in linear programming problem formulation. Discuss in brief the
b. Alpha Limited produces & sells two different products under the brand names black & white.
The profit per unit on these products in Rs. 50 & Rs. 40 respectively. Both the products employ
the same manufacturing process which has a fixed total capacity of 50,000 man-hours. As per
the estimates of the marketing research department of Alpha Limited, there is a market demand
for maximum 8,000 units of Black & 10,000 units of white. Subject to the overall demand, the
products can be sold in any possible combination. If it takes 3 hours to produce one unit of
black & 2 hours to produce one unit of white, formulate the model of linear programming.
[Steps involved in LPP-4
Formulation of LPP-3]

Answer: a) The procedure for mathematical formulation of a linear programming problem consists of
the following major steps:
1. Study the given situation to find the key decisions to be made
2. Identify the variables involved and designate them by symbols xj(j=1,2.)
3. State

## 3. a. What is degeneracy in transportation problem? How it can be resolved?

b. Solve the following transportation problem using Vogels approximation method.
Factories
Distribution Centres
Supply
C1
C2
C3
C4
F1
3
2
7
6
50
F2
7
5
2
3
60
F3
2
5
4
5
25
Requirements
60
40
20
15
[Degeneracy in transportation problem and resolving it-5
Computation/Solution to the problem-5]
Answer: a) Degeneracy in transportation problem
A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1
positive basic variables (non-zero), otherwise the basic solution degenerates. It follows that whenever
the number
4. a. Explain the steps in Hungarian method. Differentiate between Transportation and
Assignment problem.
b. Find the optimal assignment of four jobs and four machines when the cost of assignment is
given by the following table:
J1
J2
J3
J4
M1
10
9
8
7
M2
3
4
5
6
M3
2
1
1
2
M4
4
3
5
6
[Steps in Hungarian method-3
Differences between Transportation and Assignment problem-3
Computation/Solution to the problem-4]
Answer: a) Hungarian method algorithm is based on the concept of opportunity cost and is more
efficient in solving assignment problems. The following steps are adopted to solve an AP using the
Hungarian method algorithm.
Step 1: Prepare row
5. Define Simulation. Explain the Simulation procedure. Discuss the use of Simulation with an
example.
[Meaning of Simulation-2
Simulation procedure-4
Use of simulation with an example-4]
Answer: Simulation is the process of defining a model of a real system and conducting experiments
with this model for the purpose of understanding the behaviour (within the limits imposed by a
criterion or a set of criteria) for the operation of a system

Simulation

## 6. Explain the following:

a. Economic Order Quantity( EOQ)
b. PERT and CPM
c. Operating Characteristics of a Queuing System
[Explanation of Integer programming model-4
Explanation of PERT and CPM-3
Explanation of Operating Characteristics of a Queuing System-3]
Answer: a) Economic Order Quantity( EOQ)
The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory
with each order to minimize the total costs of inventorysuch as holding costs, order costs, and
shortage costs. The EOQ is used as part of a continuous review inventory system in which the level of
inventory

## SMU MBA SPRING 2016-2017

Dear Students,
SMU MBA SPRING 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