ST.

FRANCIS COLLEGE FOR WOMEN, BEGUMPET, HYDERABAD – 16

(AUTONOMOUS & AFFILIATED TO OSMANIA UNIVERSITY)
B.COM (IPP)
SEMESTER-III
OPERATIONS RESEARCH
(15 weeks/6 hrs a week- 90 hours)

COURSE CODE: UG/BCIPP/CC-11/306 MAX. MARKS: 100 (60:40)

PPW: 5L + 1T Credits: 5(4+1) EXAM DURATION:2hrs
Objective: To develop an understanding of operations research
Outcome: Develop ability to comprehend operational research techniques involving linear
programming, transportation and assignment.

UNIT I INTRODUCTION TO OPERATIONS RESEARCH 18hrs

Operation Research: Meaning and Scope of Operation Research - Role of Operations Research in
Decision Making - Brief outline of Operations Research Models - Formulation of a Linear
Programming Problem - Solution of a Linear Programming Problem by Graphical Method.

UNIT II LINEAR PROGRAMMING 18hrs

Linear Programming: Solution of a Linear Programming Problem by Simplex method - Artificial
variables techniques: Two Phase Method and Big-M method (Special Cases: Alternative Solutions,
Unbounded Solutions, Non existing Feasible Solutions) – Degeneracy - Method to resolve
Degeneracy

UNIT III: TRANSPORTATION MODELS 18hrs

Transportation problem: Formulation- Transportation problem as a special case of Linear
Programming Problem - Initial Basic Feasible Solution by North -West Corner Rule, Matrix
Minima and Vogel’s Approximation Methods - Optimal solution through MODI Tableau for
Balanced and Unbalanced Transportation problem - Degeneracy in Transportation Problem.

UNIT- IV: ASSIGNMENT PROBLEM AND GAMES THEORY: 18hrs

Assignment problem: Formulation- Assignment problem as a special case of Transportation
Problem and Linear Programming Problem - Optimal solution using Hungarian Method for
Balanced and Unbalanced Problems.
Games Theory: Characteristics of Game Theory- Two Persons Zero Sum Game - Maximum and
Minimax Criterion - Pure strategy games - Mixed strategy - Principle of dominance - Limitations
of Games Theory - Solving game theory problems (Simple Problems with Analytical Formula and
Graphical Methods).

UNIT V: NETWORK ANALYSIS 18hrs

Network Analysis: Introduction - Critical Path Method and Project Evaluation Review Technique
– Rules of network construction - Time calculations in networks - probability of completing the
project within given time- project crashing - optimum cost and optimum duration.

SUGGESTED READINGS:
1. S.D. Sharma, Kedarnath, Operations Research Ram Nath and Company:
2. Kanti Swaroop, P.K. Gupta and Man Mohan: Operations Research, Sultan Chand
3. Taha, -An Introduction Operations Research- Mac Millan
 4. A.M. Natarajan, P. Balasubramanian, A. Tamilarasi, Pearson Education: Operations
Research
5. Maurice Saseini, Arthur Yaspan& Lawrence Friedman: Operations Research: Methods &
Problems
6. R. Pannerselvam: Operations Research PHI Publications
7. Wagner- Operations Research PHI Publications
8. J.K. Sharma, Mac Millan: Operations Research
9. Wayne L. Winston, Cole: Operations Research Thomson Brooks

ST. FRANCIS COLLEGE FOR WOMEN – BEGUMPET, HYDERABAD

(AN AUTONOMOUS COLLEGE OF OSMANIA UNIVERSITY)
B.Com (IPP)- II YEAR: SEM-III, CBCS
OPERATIONS RESEARCH
Time : 2 Hrs Max Marks : 60

Answer All questions 5 x 12 =60

UNIT - I

1 a)What are essential characteristics of OR? Mention different phases of OR?

(OR)

b) An Electric company produces two products P1 and P2 .Products are produced and sold

on a weekly basis. The weekly production cannot exceed 25 for product P1 and 35 for

product P2. The company employs total of 60 workers. Product P1 requires 2 man-weeks of

labour, while P2requires one-man week of labour. Profit margin on P1 is Rs.60 and on P2 is

Rs.40. Formulate the problem as a LPP and solve it graphically.

UNIT -II

2a) Solve the following LPP by simplex Method.

MaxZ  3x1  2 x2 s.t.c

2 x1  x2  40; x1  x2  24;2 x1  3x2  60; x1 , x2  0

(OR)

b)Solve the following LPP by Big- M Method

𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 𝑍 = 3𝑥1 + 2𝑥2 𝑠. 𝑡. 𝑐 2𝑥1 + 𝑥2 ≤ 2 ; 3𝑥1 + 4𝑥2 ≥ 12 ; 𝑥1 , 𝑥2 ≥ 0.

UNIT-III

3a) A firm has plants A,B and C which supply warehouses at W,X,Y and Z. Monthly plant

capacities are 450,750 and 900 units respectively. Monthly warehouse requirements are
 300,300,500 and 500 respectively. Unit shipping costs ( in Rs ) are as follows.

W X Y Z
A 35 27 35 24
B 30 25 33 39
C 36 40 28 33

Find the optimum solution.

b) (i) Find the IBFS to the following Transportation problem by Matrix minima method.

D E F G Supply
A 19 30 50 10 7
B 70 30 40 60 9
C 40 8 70 20 18
Demand 5 8 7 14

(ii) Explain the Vogel’s approximation method for finding IBFS?

(iii) What is Degeneracy in Transportation Problem? How do resolve it?

UNIT-IV

4a) The owner of a small mechanic shop has four mechanics available to assign jobs for the

day. Five jobs are offered with expected profit for each mechanic on each job which are as

follows.

Jobs
mechanic I II III IV V
A 62 78 50 111 82
B 71 84 61 73 59
C 87 92 111 71 81
D 48 64 87 77 80

Find assignment of Mechnics to jobs that will result in a Maximum profit? Which job

should be declined

(OR)

b)(i)Use dominance to reduce the size of the following to 2 X 2 game and hence find the optimal
strategies and value of the game.

Player B

I II III IV

I 3 2 4 0
 Player A II 3 4 2 4

III 4 2 4 0

IV 0 4 0 8

(ii) Solve the following 2x2 game graphically

Player B
Player A I II III IV
I 2 1 0 -2
II 1 0 3 2

UNIT-V

5a) A project consists of seven activities whose time estimates are listed in the table below.

Activity A B C D E F G
Predecessor - A A B,C B D,E D
Activity
Optimistic 3 6 3 10 7 5 4
Most 1 2 3 4 3 2 4
likely
Pessimistic 7 14 3 22 15 14 4

(i)Draw the network and find the critical path

(OR)

(b) (i) A project consists of a series or tasks labeled A, B, C………….H, I with the following

relationships

A < D; A<E, B<F , D<F, C<G, C<H, F<I ,G<I

Draw the Network diagram.

(ii) What are the rules for constructing a network diagram?

(iii)Distinguish between PERT and CPM?