FALL-2017

Get solved assignments at nominal price.

Mail us at: subjects4u@gmail.com or contact at
08894344452, 8219081362
Master of Business Administration - MBA Semester 2

MBA205 - OPERATIONS RESEARCH

SET - I
1 Define the Linear programming problem in operation Research. Also, explain various
assumptions, advantages and limitations of linear programming problem.
A Linear programming problem in operation Research
Assumptions of linear programming problem
Advantages of linear programming problem
Limitations of linear programming problem

Answer: In organisations, managers are required to make judicious use of scarce resources, such as
men, materials, machines and capital, to minimise costs and maximise profits. A technique that is
used to select the best alternative from a set of feasible ones in situations where

2 a. Discuss the concept of Degeneracy in transportation problem

b. The ABC Tool Company has a sales force of 25 men who work out from Regional offices. The
company produces four basic products lines of hand tools. Mr. Jain, the sales manager, feels that 6
salesmen are needed to distribute product line 1, 10 salesmen are needed to distribute product
line 2, 4 salesmen to product line 3 and 5 salesmen to product line 4. The cost per day of assigning
salesmen from each of the offices for selling each of the product lines are as follows;

Regional office Product Lines

𝑷𝟏 𝑷𝟐 𝑷𝟑 𝑷𝟒
R1 20 21 16 18
R2 17 28 14 16
R3 29 23 19 20

Now, 10 salesmen are allowed to office R1, 9 salesmen to office R , and 7 salesmen to office R .
How many salesmen should be assigned from each office to selling each product line in order to
minimize costs?
Degeneracy in transportation problem
Optimum allocation.
Optimum transportation cost

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 of basic cells is less than m + n – 1, the transportation problem is a

3 a. Elaborate the meaning of Simulation.

b. What are different Practical applications of simulation
A Meaning of Simulation.
Practical applications of simulation

Answer: a) Simulation is a representation of real-life situations. It is a method in which a replica of a

real-world process or system is developed over a period of time. The simulated model acts in the
same manner as the selected physical or abstract process or system behaves in reality. For example,

SET-II
1 a. Define the meaning of assignment problem in operation Research.
b. A Departmental head has four subordinates and four task to be performed. The subordinates
differ in efficiency and the tasks differ in their intrinsic difficulty. His estimate of the times each
man would take to perform each task is given in the following matrix-
Tasks Subordinates
I II III IV
A 8 26 17 11
B 13 28 4 26
C 38 19 18 15
D 19 26 24 10
How should the tasks be allocated to subordinates to minimize the total man-hours?
A Description of assignment problem
Optimum allocation through Hungarian method

Answer: a) An assignment problem is a special type of transportation problem. In an assignment

problem, the same number of facilities (sources of supply) needs to be allocated to the same number
of jobs (points of destinations) so that the transportation cost is minimised or the profit is

2. Define following criteria’s used for decision making under Uncertainty

a. Optimism (maximax or minimin) criterion
b. Pessimism (maximin or minimax) criterion
c. Equal probabilities (Laplace) criterion
d. Coefficient of optimism (Hurwicz) criterion
e. Regret (salvage) criterion

Answer: a) Optimism (maximax or minimin) criterion: Here, the decision maker tries to achieve the
largest possible profit (Maximax) or minimum possible cost (minimin). If the entries in the payoff
matrix are the one which the decision maker wants as large as possible, for example, profits or sales
revenue, he/she selects the alternative that represents the maximum of the maximum

3 a. Explain the importance and utility of the replacement model in business organizations.
b. The maintenance cost and re-sale value per year of a machine whose purchase price is Rs. 7000
is given below-
Year 1 2 3 4 5 6 7 8
Maintenance cost (Rs.) 900 1200 1600 2100 2800 3700 4700 5900
Resale value (Rs.) 4000 2000 1200 600 500 400 400 400
Importance and utility of the replacement model Replacement Year
Answer: a) In an organisation, replacement problems arise when fixed assets, such as machines,
equipment, and other tools, need to be replaced due to reduced efficiency, failure or breakdown.
Sometimes, replacement takes place when more efficient equipment is available in the market or the
maintenance of the existing equipment is incurring a huge cost on an organization

FALL-2017
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
08894344452, 8219081362