Subject Code: IMT-25

Subject Name : Operation Research

Objective:
To develop working knowledge on operation research techniques and appreciation of applications thereof to
business problems.

Contents :
Linear Programming problem
Integer Programming and Quadratic Programming
Transportation problem
Assignment problem
Queuing Theory
Decision Analysis
Simulation
Networking – PERT and CPM

Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.
b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IV (Case Study) must be sent
together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Only hand written assignments shall be accepted.
A. First Set of Assignments: 5 Questions, each question carries 1 marks.
B. Second Set of Assignments: 5 Questions, each question carries 1 marks.
C. Third Set of Assignments: 5 Questions, each question carries 1 marks. Confine your answers to 150
to 200 Words.
D. Forth Set of Assignments: Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

ASSIGNMENTS
FIRST SET OF ASSIGNMENTS Assignment-I = 5
Marks
PART– A

1. State the different types of models used in operation research? Explain briefly the general
method for solving these O.R models?

2. Customer arrives at sales counter by a poison process with a mean rate of 20 per hr. The time
required to serve a customer has an exponential distribution with a mean of 100 seconds. Find
the average waiting & queue length of customer.

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 3. Obtain the optimal strategy for both persons & the value of game:

B1 B2
A1 1 -3
A2 3 5
A3 -1 6
A4 4 1
A5 2 2
A6 -5 0

4. Prepare network, activity time estimates, determine the expected project completion time &
variance.

Activity Time estimates ( days)

to Tm tp
1-2 5 8 17
1-3 7 10 1
2-3 3 5 7
2-4 1 3 5
3-4 4 6 8
3-5 3 3 3
4-5 3 4 5
5. What is queuing theory? Discuss the service mechanism in queuing theory.

SECOND SET OF ASSIGNMENTS Assignment-II = 5 Marks

PART– B

1. Determine a sequence for the 5 jobs that will minimize the elapsed time.
Job 1 2 3 4 5
A 5 1 9 3 10
B 2 6 7 8 4

2. What is meant by optimality test in a transportation problem? How would you determine
whether a given transportation solution is optimal or not?

3. OR advocates a system approach and its procedure is concerned with optimization. Discuss.

4. Discuss the importance and applications of PERT and CPM in project planning and control.

5. Write short notes on n- Johnson’s algorithm for n jobs m machines

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THIRD SET OF ASSIGNMENTS Assignment-III = 5 Marks
PART– C

1. Solve the following transportation problem by VAM:

1 2 3 Supply
1 5 1 7 10
2 6 4 6 80
3 3 2 5 15
Demand 70 20 50

2. Write short notes on :

a) Failures in replacement theory.
b) Decision tree analysis.

3. The maintenance cost & resale value per year of machine whose purchase price is Rs 7000 is
given below:
Yr 1 2 3 4
Maintenance cost 900 1200 1600 2100
Resale value 4000 2000 1200 600

When should the machine be replaced?

4. Specify the characteristics of M/M/1 queue model.

5. Discuss the following terms in game theory: Saddle point; Pure strategy; Two person zero
sum game; Principle of dominance.

FOURTH SET OF ASSIGNMENTS Assignment-IV = 2.5 Each Case Study

CASE STUDY - I
A firm manufactures three products A,B,C the profits are RS 3, Rs 2, & Rs 4respectively. The firm
has two machines M1& M2 and below given is the required processing time in minutes for each
machine on each product

MACHINE PRODUCT
A B C
M1 4 3 5
M2 2 2 4

Machines M1 & M2 have 2000 & 2500 machine minutes respectively. The firm must manufacture
100 A’s, 200 B’s & 50 C’s, but not more than 150 A’s. Set up an LPP to maximize profits.

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 CASE STUDY-II

A fruit vendor purchases fruits for Rs 3 a box and sells for Rs 8 a box. The high markup reflects the
perish ability of the fruit and the great risk of stocking it., the product has no value after the first day it
is offered for sale. The vendor faces the problem of how many boxes to order for tomorrow’s
business. A 90 day observation of the past sales gives the following information.

Daily Sales No. of days sold Probability

10 18 .20
11 36 .40
12 27 .30
13 9 .10
Total 90 1.00

Determine the number of boxes he should order to maximize its profit. Also find the expected
monetary value and regret table.

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