ASSIGNMENT Quantitative Techniques

Q1 The owner of a chain of fast food restaurants is considering a new computer system for accounting and inventory
control. A computer company sent the following information about the system installation:

Time Activity Description

A Select the computer model B Design I/O system C Design monitoring system D E F Assemble computer hardware Develop the main program Develop I/O routine

Immediate Predecessor
A A B B C E D,F G,H

Optimistic
4 5 4 15 10 8 4 1 6

Most Likely
6 7 8 20 18 9 8 2 7

Pessimistic
8 15 12 25 26 16 12 3 8

G Create database H Install the system I Test and implement

Draw the project network and calculate length of the critical path. What is the probability that the jobs on the critical path will be completed in 55 days? Also find the date on which the project manager can complete the project with a probability of 95%.

Q2

The following data pertains to a certain project: Immediate Normal Normal Activity Predecessor. Time(weeks) Cost __ A 10 30 B A 8 120 C B 10 100 D A 7 40 E D 10 50 F C, E 3 60 (a) (b) (c)

Crash Time(weeks) 8 6 7 6 8 1

Crash Cost 70 150 160 50 75 95

Show the project network Assume the company wants to complete the project in 28 weeks. Should any activity be crashed? Explain. Assuming there is a overhead cost of 20, what is the optimal crash plan that minimizes total costs?

Assignment to be submitted latest by 10/3/12

email-id: kkaggarwal@gmail.com

Q3 The annual demand for an item is 4000 units. The cost to process an order is Rs. 20 and annual holding cost is 20% of unit cost per year. What is the optimal order quantity, given the following price breaks for purchasing the item? Quantity 1-499 500-4999 5000 or more Cost/Unit (Rs.) 2.50 2.30 2.25

Q4 An assistant manager is reviewing the costs associated with the stores best-selling product. The store has the following 10 items in inventory. Carry out their ABC classification. Represent the findings graphically: Item E102 D23 D27 R02 R19 S107 S123 U11 U23 V75 Annual Consumption 800 1200 700 1000 200 500 1200 800 1500 1500 Unit Cost (Rs.) 4 8 3 2 8 6 1 7 1 4

Q5 The XYZ bank presently has one outside drive-up teller. It takes the teller an average of four minutes to serve a bank customer. Customers arrive at the drive-up window at the rate of 12 per hour. The bank operations officer is currently analyzing the possibility of adding a second drive-up window at an annual cost of Rs.2,00,000. It is assumed that arriving cars will be equally divided between both windows. The operations officer estimates that each minutes deduction in customer waiting time would increase the banks revenue by Rs.20,000 annually. Should the second drive-up window be installed? Assume that the distribution of number of arrivals is Poisson and the service time distribution is exponential. Q6 The ABC fertilizer Company produces three types of fertilizer Supergro, Dynaplant and Soilsaver. The company has the capacity to produce a maximum of 2000 tons of fertilizer in a week. It cost Rs.8,000 to produce a ton of Supergro, Rs.15,000 for Dynaplant and Rs.20,000 for Soilsaver. The production process requires 10 hours of labour for a ton a Supergro, 12 hours for a ton of Dynaplant, and 18 hours for a ton of Soilsaver. The company has 800 hours of normal production labour available each week. Each week the company can expect a demand for 800 tons of Supergro, 900 tons of Dynaplant, and 1100 tons of Soilsaver. The company has established following goals in order of their priority: (i) (ii) The company does not want to spend over Rs. 2,00,000 per week on production if possible. The company would like to limit overtime of 100 hours per week.

Assignment to be submitted latest by 10/3/12

email-id: kkaggarwal@gmail.com

(iii) (iv) (v)

The company wants to meet the demand for all three fertilizers. However it is twice as important to meet the demand for Supergo as it is to meet the demand for Dynaplant, and it is twice as important to meet the demand for Dynaplant as it is to meet the demand for Soilsaver. It is desirable to avoid producing under capacity, if possible. Because of union agreement the company wants to avoid under utilization of labour.

Formulate a goal programming model for determining the number of tons of each brand of fertilizer to produce in order to satisfy the goals.

Assignment to be submitted latest by 10/3/12

email-id: kkaggarwal@gmail.com