Roll No...........................

Total No. of Questions : 13] [Total No. of Pages : 04

Paper ID [B0211]
(Please fill this Paper ID in OMR Sheet)

MBA (301) (S05) (OLD) (Sem. - 3rd)

APPLIED OPERATIONS RESEARCH

Time : 03 Hours Maximum Marks : 75

Instruction to Candidates:
1) Section - A is Compulsory.
2) Attempt any Nine questions from Section - B.

Section - A
Q1) (15 × 2 = 30)
a) Define operations research.
b) Differentiate between Ionic model & Analogue model.
c) Define Objective function & feasible solution.
d) Explain the significance of duality in linear programming.
e) What is sensitivity analysis in LPP?
f) Explain the importance of Replacement Models.
g) Write the steps to find the initial feasible solution of a transportation
problem by MODI method.
h) State the principle of optimality in dynamic programming.
i) Show that assignment problem is a special case of transportation problem.
j) What is transshipment problem?
k) What are different characteristics of Queuing problem?
l) Define the terms (a) Competitive games, (b) Pure strategy.
m) Classify various inventory models?
n) Write assumption of Economic lot size formula.
o) Distinguish between PERT & CPM.

D - 24 P.T.O.
 Section - B
(9 × 5 = 45)
Q2) Discuss various phases in solving a OR problem.

Q3) What is function of a model in decision making? Explain different models

with their advantages & limitations.

Q4) The standard weight of a special brick is 5 Kg and it contains two basis
ingredients B1 & B2 costs Rs 5 per kg & Rs 8 per kg. Strength conditions
dictates that brick contains more than 4 kg of B1 and minimum 2 kg of B2.
Since demand for a product is likely to be related to the price of brick. Find
out graphically minimum cost of brick satisfying above conditions.

Q5) Use Duality to solve the following problem.

MIN Z = x1 – x2 subject to
2x1 + x2 ≥ 2
– x1 – x2 ≥ 1
x1, x2 ≥ 0

Q6) What is transshipment problem? Show how a transshipment problem can be

modeled as a transportation problem?

Q7) Describe any one method of solving a assignment problem.

Q8) A manufacturer has distribution centers at X, Y, Z locations. These centers

have the availability of 40, 20, 40 units of his products. His retail outlets at A,
B, C, D, E requires 25, 10, 20, 30, 15 units respectively. The transportation
costs in Rs per unit between each center outlet is given below.

Dist center/ A B C D E
Retail outlet
X 55 30 40 50 50
Y 35 30 100 45 60
Z 40 60 95 35 30

Determine optimal distribution to minimize cost of transportation.

D - 24 2
Q9) A construction company has requested bids from subcontractors on five
different projects. Five companies have responded, Their bids are represented
below. Determine minimum costs of assignment of subcontractor to bidders,
assuming each bidder can receive only one contract.

BID Amount (000’s Rs)

I II III IV V
1 41 72 39 52 25
Bidders 2 22 29 49 65 81
3 27 39 60 51 40
4 45 50 48 52 37
5 29 40 45 26 30

Q10) There is congestion on platform of railway station. The trains arrive at a rate
of 30 trains per day. The waiting time for any train to hump is exponentially
distributed with an average of 36 minute. Calculate.
(a) Mean queue size
(b) The probability that queue size exceed 9.

Q11) Solve the following game and determine the value of Game.
PLAYER Y
Strategy 1 Strategy 2
Strategy 1 4 1
PLAYER X Strategy 2 2 3

Q12) A shop keeper has uniform demand of an item @ 50 items per month. He
buys from a supplier at a cost of Rs 6/- per item and cost of ordering is Rs
10/- each time. If stock holding cost is 20% per year of stock value, how
frequently should he replenish his stock? Suppose the supplier offers a 5%
discount on order between 200 & 999 items and 10% discount on order
exceeding 1000, can shop keeper reduce his cost by taking advantage of
either of these discount.

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Q13) A small project is composed of 10 activities whose time estimates are listed
below. Activities are identified by their beginning
(a) and ending
(b) node numbers.

Activity Estimated Durations (Days)

i j Optimistic Most likely Pessimistic
1 2 5 12 17
1 3 9 11 12
1 5 8 10 13
2 4 9 11 13
2 5 5 8 9
3 6 14 18 22
4 8 14 17 21
5 7 21 25 30
6 7 8 13 17
7 8 6 9 12
(a) Draw project network & identify all path through it
(b) Find expected duration & variance for each activity.

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