Code No: R5311304 R5

III B.Tech I Semester(R05) Supplementary Examinations, November 2010

OPERATIONS RESEARCH
(Electronics & Control Engineering)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
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1. (a) What are the advantages and limitations of LP problem?

(b) Old hens can be bought at Rs 30 each and young ones at Rs 50 each. The old hens lay 3 eggs
per week and the young ones lay 6 eggs per week, each egg being worth Rs.1.75 paise. A hen (
young or old ) costs Rs 3 per week to feed. I have only Rs 100 to spend for hens. How many of
each kind should I buy to give a profit of more than Rs 6 per week, assuming that I cannot house
more than 20 hens. [6+10]
2. A manufacturer has distribution located at Agra. Allahabad and Kolkata. These center have available
40, 20 and 40 units of his product. His retail outlets at A, B, C, D and E requires 25,10,20,30 and
15 units of the product, respectively. The shipping cost per unit (in rupees) between each center and
outlet is given in the following table.

Distribution Centre Retail Outlets

A B C D E
Agra 55 30 40 50 40
Allahabad 35 30 100 45 60
Kolkata 40 60 95 35 30

Determine the optimal shipping cost. [16]

3. (a) What is replacement problem? Describe some important replacement situations.
(b) The following table gives the running costs per year and resale price of a certain equipment whose
purchase price is Rs. 5000.
Year : 1 2 3 4 5 6 7 8
Running costs (Rs.) : 1500 1600 1800 2100 2500 2900 3400 4000
Resale value (Rs.) : 3500 2500 1700 1200 800 500 500 500
At what year is the replacement due? [6+10]
4. (a) Explain the “best strategy” on the basis of minimax criterion of optimalities.
(b) Describe the maximin principle of game theory. What do you understand by pure strategies and
saddle point? [8+8]
5. A barber shop has space to accommodate only 10 customers. He can serve only one person at a time.
If a customer comes to his shop and finds it full, he goes to the next shop. Customers randomly arrive
at an average rate of 10 per hour and the barber’s service time is exponential with an average of 5
minutes per customer.
(a) Write recurrence relations for the steady state, in FCFS steady system.
(b) Determine the probability of being barber shop is empty. [16]
6. The demand for an item in a company is 18,000 units per year, and the company can produce the
item at a rate of 3,000 per month. The cost of one setup is Rs.500 and the holding cost of one unit
per month is 15 paise. The shortage cost of one unit is Rs.20 per year. Determine the optimum
manufacturing quantity and the number of shortages. Also determine the manufacturing time and the
time between setups. [16]
7. (a) Define Bellmen’s principle of optimality.
(b) Discuss about application of dynamic programming. [8+8]
8. Explain simulation and significance of it. [16]

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