BA7206-Applied Operations Research

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BA7206 APPLIED OPERATIONS RESEARCH
VALLIAMMAI ENGINEERING COLLEGE
DEPARTMENT OF MANAGEMENT STUDIES
BA7206-APPLIED OPERATIONS RESEARCH
UNIT I
PART A
1.
What do you mean by Operations Research (OR)?
2.
What do you mean by the Optimum Solution?
3.
Write Short note on Unbounded solution
4.
Write the Canonical form of LPP and the Standard form of LPP.
5.
Why is two phase method better than big m method
6.
What are the Assumptions & Requirements of LPP
7.
What do you mean by Sensitivity analysis
8.
When is Dual Simplex used?
9.
What are Advantages of duality?
10.
What do you mean by Infeasible solution?
11.
What are the steps in Graphical method
12.
What is Simplex Method?
13.
Define Big M method?
14.
What do you mean by Slack variable?
15.
What is Surplus variable?
16.
What do you mean by Artificial variable?
17.
What is Difference between simplex and big M method?
18.
What is Two phase method?
19.
What do you mean by Duality? And What do you mean by Rules for primal and dual?
20.
What is Shadow price?
Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Mr. V.T. Balaji Amudhan, Asst. Prof(OG)
Department of Management Studies

1
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PART B
1)
a) Maximise z=3x+4y subject to

2x+5y<=60,
4x+2y<=40. Solve by Graphical Method
b) Max z= 5x1+4x2 subject to
x1-2x2<=1,
x1+2x2>=3,
x1, x2>=0. Solve Graphically.
2)
a) Min z= 20x1+10x2 subject to

x1+2x2<=40,
3x1+x2>=30,
4x1+3x2>=60,
x1,x2>=0. Solve by Graphical Method
b)Max z=300x1+400x2 subject to
2x1+3x2<=1600,
3x1+2x2<=1500,
x1+x2<=700,
X2>=300, Solve by Graphical Method.
3)
a) Solve by Simplex method,

Max z=25x+10y subject to
x+0.5y<=20,
x+y<=50.
b) Max z = 10y1+15y2+20y3
Subject to 2y1+4y2+6Y3<=24
3y1+9y2+6y3<=30,
Y1,y2,y3>=0.
4)
a) Solve by Big M Method

Min z=12x1+20x2 Subject to
6x1+8x2>=100,
7x1+12x2>=120,
x1, x2>=0.
b) Solve by Big M Method


2
Max Z=6x1-3x2+2x3
Subject to 2x1+x2+x3<=16,
3x1=2x2=x3<=18,
X2-2x3>=8
5) Write the dual of the following LPP and solve it .
MaxZ=4x1+2x2 Sub to the constraints
-x1-x2<=-3
-x2+x2>=-2
x1,x2>=0
6) Using dual simplex method solve the LPP.
Minimise Z=2x1+x2
3x1+2x2>=3
4x1+3x2>=6
x1+x2<=5
x1,x2>=0
7) A Plant Manufacturer 2 Product A & B. The Profit Contribution of each product has been
estimated as Rs.300 for product A and Rs.400 for Product B. Each Product passes through 3
departments of the plant. The time required for each product and total time available in each
department are as follows.
Department
Hours Required
Product A
Product B
Available
Hours during
month
1600
II
1500
III
700
The company has a contract to supply atleast 300 units of

product B per month. Formulate the LPP and solution
through Graphical Method
8) A company produces 2 types of hats A & B. Every hat B requires twice as much as labour
time as hat A. The company can produce a total of 500 hats a day. The market limits daily sales
of the A & B to 150 and 250 hats repectively. The Profits on hats A & B are Rs.8 & Rs.5
Respectively. Solve the Optimal solution.

3
9) A person wants to decide the constituents of a diet which will fulfill his daily requirements of
proteins, fats and carbohydrates at the minimum cost. The choice is to be made from four
different types of foods. The yields per unit of these foods are given in following table.
Formulate and solve the LPP
Food type
Yield per unit

Proteins
Cost per
Carbohydrates unit
Fats
(Rs.)
1
45
40
85
65
Minimum
800
200
700
requirements
10) A firm produces three products. These products are processors on 3 different machines. The
time required to manufacture one unit of cost of the products and the daily capacity of the three
machines is given in the table below. Formulate and solve the LPP
Machine
Time/Unit (minutes)
Machine
Product
capacity
Min/day
M1
940
M2
970
M3
430


4
Unit-II
PART A
1) Define transportation
2) What do you mean by Balanced transportation problem?
3) What do you mean by Unbalanced transportation problem?
4) What are the Phases of transportation model?
5) Define Feasible solution?
6) Write Short Note on Optimum solution in transportation.
7) What do you mean by Least cost method (LCM)?
8) What do you mean by Vogel approximation method (VAM)?
9) What is Modified distribution (MODI) method?
10) Define Degeneracy.
11) Define Transhipment.
12) What are the Differences between transportation and transhipment?
13) What do you mean by Assignment?
14) What is Balanced assignment problem?
15) What is Unbalanced assignment problem?
16) How will you resolve degeneracy in Transporation Problem?
17) What do you mean by Maximization assignment problem?
18) Write down the Steps in Hungarian algorithm?
19) Write Short Note on Branch and bound algorithm?
20) What is the Difference between assignment and transportation Problem?


5
PART B
1) a). Find the IBF of the following TP. Using NW Rule.

Destination
10
20
11
12
20
14
16
18
b.) Find the IBF of the following TP. Using NW Rule.
Destination
3
2) Solve the assignment problem represented by the following matrix.

1
22
58
11
19
27
43
78
72
50
63
48
41
28
91
37
45
33
74
42
27
49
39
32
36
11
57
22
25
18
56
53
31
17
28
3) A company has a team of 4 Salesman and the company wants to do business in 4

districts. Considering the capabilities of salesmen and nature of the district, the company has
estimated the profit per day in Rs. For each salesmen in each district as follows.
Districts
Salesmen 1
16
10
14
11
14
11
15
15
15
15
13
12
13
12
14
15


6
4) A company has one surplus truck in each of the cities A, B, C, D, & E, and one deficit trucks
in each of the citites 1,2,3,4,5,6. The distance between the cities in kms is shown in the matrix below.
Find the assignment of trucks from cities in surplus to cities in deficit so that total distance covered by the
vehicles is minimum.
1
12
10
15
22
18
10
18
25
15
16
12
11
10
10
13
13
12
12
11
13
10
5) A company is faced with the problem of assigning 4 machines to 6 different jobs. The Profit
are estimated as follows. Solve the problem to maximize total profits.
Machines
Jobs
-7
6) Using Least Cost method solve the TP

Destination
Availability
D1
D2
D3
D4
O1
22
O2
15
O3
Demand
12
17
7) Using VAM method solve the TP

Destination
Availability
D1
D2
D3
D4
O1
22
O2
15
O3
Demand
12
17


7
8) Using MODI Method Solve the following TP
21
16
25
13
17
18
14
23
32
27
18
41
9) Using Stepping stone method find the optimum solution for the TP Cost.
Supply
11
15
Demand
10) A firm has 2 factories x & y are 3 stores A, B, C. The number of units of a product available
at factories X & Y are 200 and 300 respectively. While demanded at retail stores are 100, 150, 250
respectively. Rather than shipping directly from source to destination it is decided to investigate the
possibility of transshipment. Find the optimal shipping schedule. The TP cost in Rs./per unit are given
below.
C
X


8
Unit-III
PART A
1) What do you mean by integer programming problem?
2) In what respect a mixed IPP is differ from pure IPP.
3) What is Gomorys fractional cut algorithm or Gomorys slack?
4) What do you mean by Game?
5) What are the Characteristics of game?
6) Define Strategy.
7) Define Pure strategy.
8) Write Short Note on Mixed strategy.
9) What is Saddle point?
10) Define Payoff matrix?
11) Define Dominance principle?
12) What is the concept of Two person zero sum game?
13) How is the concept of Game theory useful in Managerial Decision Making?
14) Define Pay off Matrix.
15) What are the basic assumptions of the Game?
16) Write down the advantages of Game theory.
17) What are the Methods of Matrices?
18) Define Graphical and LP Solutions in Game theory?
19) What is a Decision Tree?

20) How decision Tree analysis is used to improve the decision-making process?


9
PART B
1.
Find the optimum integer solution

Max Z =
x1+x2
Sub to 3x1+2x2<=5
x2<=2
x1,x2 >=0 and are integers
2. Using Gomorys cutttting plane method ,

Max Z=2x1+2x2
Sub to 5x1+3x2<=8
2x1+4x2<=8
x1,x2 >=0 and are integers
3. Solve the game using dominance
A/B
No advertising
No advertising
No advertising
No advertising
60
50
40
Medium advertising
70
70
50
large advertising
80
60
75
Player A
4.a) Find the Value of the Game Given the following Pay Off Matrix.
Player B
B1 B2 B3
A1
-2
5
-3
A2
1
3
5
A3
-3
-7
11
Player A
b) Find the Value of the Game Given the following Pay Off Matrix.
A1
A2
A3
A4
Player B
B1 B2
0
-4
3
-5
-2
-1
1
0

B3
-2
1
6
4

10
5. Solve the game using a graph: (8 marks)
A/B
A1
A2
B1
3
5
B2
3
4
B3
4
3
B4
0
7
6.) A) Solve by Dominance Rule:

B1 B2 B3 B4 B5
A1
A2
A3
A4
b) Solve by Dominance Rule:

B1 B2 B3 B4 B5 B6
A1
A2
A3
-5
A4
-1
A5
-2
7) Solve the Game Graphically:

Player A
Player A
B1
B2
A1
-3
A2
A3
-1
A4
A5
A6
-5


11
8) a) In a game of matching coins with 2 players, A wins 1 unit value when there are 2 heads, wins
nothing when there are 2 tails and closes unit value when there are one head and one tail. Determine
Pay Off matrix and value.
b) Two players A&B match coins. If the coins match then A wins one unit value, if the coins do not
match then B wins one unit of value. Determine pay-off matrix.
9) A and B play a Match(Game) in which each has 3 coins 5 paise, 10 paise and 20 paise. Each player
selects a coin without the knowledge of others choice. IF the sum is even, B wins As Coin. Find the Best
Strategy & value of the Game.
10) Solve the 2 * n Game by the Method of Sub Game:

B1
B2
B3
A1
11
A2


12
Unit-IV
PART A
1) Define inventory.
2) What are the Forms of inventory?
3) Write down the Objectives/significance of inventory model
4) What is Inventory Control?
5) Define Lead time.
6) What are the Types of stock replenishment?
7) Define the Basic inventory models.
8) What is Ordering Cost?
9) What are the models of Decision making under risk.
10) List out four advantages of Simulation Technique?
11) What is Total inventory cost?
12) Define Purchase cost.
13) What is Production cost & Total cost.
14) Define Shortage cost/stock out cost.
15) Explain the Criteria of Decision Making under Uncertainty.
16) What are the Procedures for price break model?
17) List out the problems which could be solved by simulation?
18) What is Safety Stock?
19) Define Decision theory.
20) What is the Classification of decision theory?


13
PART B
1)
a) Alpha industry needs 5400 units per year of a bought out component which will be used in its
main product. The ordering cost is Rs.250 per order and the carrying cost per unit per year is Rs.30. Find
EOQ and no. of order per year.
b)A contractor has to supply 10000 bearings per day to an automobile manufacturer. He finds that
when he starts a production run he can produce 25000 bearings per day. The cost of holding a bearing in
stock for one year is 2 paise and the set up cost of the production run is Rs.18. How frequently should
production run be made and find EBQ.
2)
a) A stockiest has to supply 12000 units of a product per year to his customer. Demand is fixed
and known. Shortage cost is assumed to be infinite. Inventory holding cost is 20 paise per unit per month.
Ordering Cost is Rs. 250 and purchase price is Rs.10 per unit. Find the EOQ & Frequency of orders.
b) A stockiest has to supply 400 units of a product every Monday to his customer. He gets the
product at Rs.50 per unit from the manufacturer. The cost of ordering and transportation from the
manufacturer is Rs.75 per order. The cost of carrying inventory is 7.5% per year of the cost of product.
Find out EOQ
3)
a) ABC manufacturing company purchases 9000 parts of a machine for its annual requirement.
Each part costs Rs.20. The ordering cost per order is Rs.15 and the carrying charges are 15% of the
average inventory per year. Find EOQ.
b) A company has a demand of 12000 units/year for an item and it can produce 2000 units per
month. The cost of one setup is Rs.400 and the holding cost/unit/month is 15 paise. Find the optimum lot
sizeand total cost per year assuming the cost of 1 unit as Rs.4. Find EBQ
4) Demand for an item in a company is 18,000 units per year. The company can produce the items at a
rate of 3000 units per month. The Cost of one setup is Rs.500 and the holding cost of one unit per month
is 15 paise. Shortage cost of one unit is Rs.20 per year. Determine the optimum manufacturing quantity
and no. of shortage.
5) Find the Optimal order quantity for a product for which the price breaks are as follows:
Quantity
Unit Cost(Rs.)
O<q<500
1000
500<=Q<=750
925
750<=Q
875


14
6) Find the optimal order quantity for a product when the annual demand for the product is 500 units. The
Cost of storage per unit per year is 10% of the unit cost. Ordering cost per order is Rs. 180. The unit cost
are given below:
Quantity
Unit Cost(Rs.)
O<q<500
25
500<=Q2<=1500
24.80
1500<=q3<3000
24.60
3000<=Q4
24.40
7) A newspaper boy has the following probability of selling a magazine. Cost of a copy is 30 paise and
sale price is 50 paise. He cannot return unsold copies. How many copies should he order?
No. Of Copies 10
11
12
13
14
Probability
0.15
0.20
0.25
0.30
0.10
Find EVPI, EOL, EPPI
8) A newspaper boy has the following probability of selling a magazine. Cost of a copy is 30 paise and
sale price is 50 paise. He cannot return unsold copies. How many copies should he order?
No. Of Copies 10
Probability
0.10
11
12
13
14
0.15
0.20
0.25
0.30
Find EOL and EVC
9)A Bakery keeps a stock of particular brand of cake. Daily demand of past experience:
Daily demand
15
Probability
0.01 0.15
25
35
45
50
0.20
0.50
0.12
0.02
Consider the following sequence of random numbers.

48
78
51
56
77
15
14
68
Using this sequence simulate the demand for next 10 days. Find the stock situation if the owner makes 35
cakes everyday. Also estimate daily average demand.
10) Describe all Decision criteria under the conditions of uncertainty.

15
Unit-V
PART - A
1. Define Queue.
2. Define Queuing theory/waiting line.
3. Define Idle time cost
4. What is Waiting time cost?
5. What are the Types of queue?
6. What are the Characteristics Of Queuing Models.?
7. Write Kendalls Notation
8. Define Replacement.
9. What is Replacement model?
10. What are the types of Replacement models?
11. What are the Difference Between IRP & GRP.
12. Define Group Replacement (GRP)
13. Define Individual relacement (IRP)
14. Write Short note on: Calling Source Or Population
15. Define Jockeying.
16. Define service discipline.
17. What is Collusion in Queue Discipline?
18. What is Group Replacement Policy?
19. When a Machine should be replaced?
20. Describe Kendalls Notation for identifying a Queue Model with two channels, Poisson arrivals,
exponential service and infinite calling population.


16
PART B
1) The cost of machine is Rs.16100 and scrap value is Rs.1100. Maintenance Cost form for machine
are as follows:
Year
Maintenance Cost
300
450
600
800
100
1200
1500
2000
What should be the replacement year?
2) The following table gives to cost of spares per year, overhead cost of maintenance per year and resale
value of certain equipment whose purchase price is Rs 50000:
Year
Cost of Spares
10000 12000 14000 15000 17000
Overhead Maintenance Cost 5000

Resale Value
5000
6000
6000
8000
40000 32000 28000 25000 22000
3) A Taxi owner estimates from his past records that the cost per year for operating a taxi whose purchase
price when new is Rs.60,000 are as follows.
Age
Operating 10000 12000 15000 18000 20000

Cost
After 5 years the operating cost is Rs.6000 x K, Where k is 6,7,8,9,10(age). IF the resale value
decreases by 10% of purchase price each year, what is the best replacement policy?
4) A cost of a machine is 6100 and its scrap value is Rs. 100. The maintenance Cost from the experience
are as follows:
Year
Maintenance 100
250
400
600
900
1200
1600
2000
Cost
What should be the replacement year?


17
5) A desktop publisher finds from his previous records that the cost per year of using an inkjet printer
whose purchase price is Rs 7000 is as given below. Find the year of replacement
Year
Running cost 1100 1300 1500 1900 2400 2900 3500 4100
Resale price
3100 1600 850
475
300
300
300
300
6) Machine A Costs Rs.9000. Annual Operating Cost is Rs.200 for the 1st year and then increases by 2000
every year. Determine the best age at which to replace the machine. Assume the machine has no resale
value.
Machine B Costs Rs.10,000 . annual operating cost is Rs.400 for the 1st year and then increases
by 800 every year. No resale value. You have now a machine of type A which is one year old. Should you
replace it with B. Is so, When?
7) A self-service store employs one cashier at its counter. 9 Customers arrive on an average every 5
minutes. While the cashier can serve 10 customer in 5 minutes. Assuming poisson Distribution for arrival
rate and exponential distribution for service rate Find,
(i) Average number of customer in the system
(ii) Average Number of customer in Queue.
(iii) Average time a customer spend in the system
(iv) Average time a customer wait before being Served.
8) A super market has 2 girls running up sales at the counters. If the service time for each customer is
exponential with mean of 4 minutes and if people arrive in a poisson fashion at the rate of 10 an hour.
(a) What is the average waiting time a customer spends in the system?
(b) What is the expected percentage of Idle time for each girl?
9) A two person barber shop has five chairs to accommodate waiting customers. Potential customers
who arrive when all five chairs are full leave without entering the barbership. Customers arrive at the
average rate of 3.7674 per hour and spend an average of 15 minutes is the barber chair.
a) What is the probability a customer can get directly into the barber chair upon arrival?
b) What is the effective arrival rate?
c) How much time can a customer expect to spend in the barber shop?
d) How much time can a customer expect to spend in the barber shop?
e) What fraction of potential customer is timed away?


18
10)
a)Find the Best Policy whether GRP or IRP.?

Week
Conditional Probability
0.07
0.15
0.25
0.45
0.75
0.9
IRP Cost is Rs.1.25 per item

GRP Cost is Rs.60 Paise Per item.
b) Compare IRP or GRP and conclude which is best. IRP cost Rs 4/item. GRP cost is 80
paise/item.
Week
Probability 0.09 0.25 0.49 0.85 097 1
c) There are 10000 bulbs. IRP cost is Rs 1/bulb and GRP cost 35 paise/bulb. Find out whether
IRP or GRP is best given the probability of failure.
Week
Probability 0.03 0.07 0.20 0.40 0.15 0.15


19

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www.Vidyarthiplus.

What do you mean by Operations Research (OR)?

What do you mean by the Optimum Solution?

Write Short note on Unbounded solution

Why is two phase method better than big m method

What are the Assumptions & Requirements of LPP

What do you mean by Sensitivity analysis

When is Dual Simplex used?

What are Advantages of duality?

What do you mean by Infeasible solution?

What are the steps in Graphical method

What is Simplex Method?

Define Big M method?

What do you mean by Slack variable?

What is Surplus variable?

What do you mean by Artificial variable?

What is Difference between simplex and big M method?

What is Two phase method?

What is Shadow price?

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

a) Maximise z=3x+4y subject to

a) Min z= 20x1+10x2 subject to

a) Solve by Simplex method,

a) Solve by Big M Method

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

The company has a contract to supply atleast 300 units of

Department of Management Studies

Yield per unit

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

1) a). Find the IBF of the following TP. Using NW Rule.

b.) Find the IBF of the following TP. Using NW Rule.

2) Solve the assignment problem represented by the following matrix.

3) A company has a team of 4 Salesman and the company wants to do business in 4

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

6) Using Least Cost method solve the TP

7) Using VAM method solve the TP

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

19) What is a Decision Tree?

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

Find the optimum integer solution

2. Using Gomorys cutttting plane method ,

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

6.) A) Solve by Dominance Rule:

b) Solve by Dominance Rule:

7) Solve the Game Graphically:

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

10) Solve the 2 * n Game by the Method of Sub Game:

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)

Department of Management Studies

Dr. Radha Ganeshkumar, Asst. Prof(Sel. Gr)