1.

(a) Use dominance principle to simplify the rectangular game with the following payoff
matrix and then solve graphically.

(b) Describe about Kendal’s Notation for representing Queuing Models.

2. (a) Find the optimal order quantity for a product for which the price breaks are as follows:

The monthly demand for the product is 200 units, the cost of storage is 25% of the unit cost and
ordering cost is Rs. 20 per order. (3M)
(b) Distinguish between ABC and VED analyses. (2M)

3. (a) Solve the following LP problem by dynamic programming approach (5M)

Maximize Z = 3x1 + 5x2
Subject to the constraints
x1 4
x2 6
3x1 + 2x2 18
x1, x2 0

(b) What is simulation? List the applications of simulation.

1. (a) Solve the following game graphically

1 2
4 5
9 -7
-3 -4
2 1
(2M)
(b) In a medium scale industry, a tool and cutter grinder operator finds that the time spent on
each tool has an exponential distribution with mean 25 minutes. If he grinds tools in the order
in which they come in and arrival of tools for grinding is approximately Poisson with an
 average rate of 11 per 8 hours day, what is the operators expected idle time each day? How
many jobs are ahead of the average tools just brought in? (3M)
2. (a) Derive Economic Order Quantity (EOQ). (2M)
(b) A tyre manufacture company has to supply 12000 tyres per year to an automobile
industry. The demand is fixed and known. Shortage cost is assumed to be infinite. The
inventory holding cost is Rs 0.15 per month and the setup cost per run is Rs 325. Determine
the following
(i) The optimum EOQ
(ii) Optimum scheduling period
(iii) Minimum total expected yearly cost (3M)

3. (a)Describe recursive equation approach to solve dynamic programming problems. (2M)

(b) Solve the following linear programming problem by dynamic programming:

Max Z= 3x1+x2
subject to the constraints
2x1 + x2 6
x1 2
x2 4
x1, x2 0 (3M)