AEREN FOUNDATIONS 11724

Maharashtra Govt. Reg. No.: F-

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SUB:QUANTITATIVEMETHODS N.B.:1)
1.

AnsweranySixteen

Whatisalinearprogrammingproblem?Discussthescopeandroleoflinear programminginsolvingmanagementproblems.Discussanddescribetherole of linear programming in managerial decisionmaking bringing out limitations,ifany.

2.

Explaintheconceptandcomputationalstepsofthesimplexmethodforsolving linearprogrammingproblems.Howwouldyouidentifywhetheranoptimal solutiontoaproblemobtainedusingsimplexalgorithmisuniqueornot? a) What is the difference between a feasible solution, a basic feasible solution,andanoptimalsolutionofalinearprogrammingproblem? b) What is the difference between simplex solution procedure for a `maximizationanda`minimizationproblem? c) Usingtheconceptofnetcontribution,provideanintuitiveexplanation ofwhythecriterionforoptimalityformaximizationproblemisdifferent fromthatofminimizationproblems.

Outline the steps involved in the simplex algorithm for solving a linear programming maximization problem. Also define the technical terms used therein.

3.

``Linearprogrammingisoneofthemostfrequentlyandsuccessfullyemployed Operations Research techniques to managerial and business decisions. Elucidatethisstatementwithsomeexamples. 2

2 4. Describethetransporationproblemandgiveitsmathematicalmodel.Explain, bytakinganillustration,theNorthWestCornerRule,theLeastCostMethod andtheVogelsApproximationMethodtoobtaintheinitialfeasiblesolutionto atransportationproblem. Discuss the various methods of finding initial feasible solution of a transportationproblemandstatetheadvantages,disadvantages,andareasof applicationforthem.

5.

Whatisanassignmentproblem?Itistruetosaythatitisaspecialcaseofthe transportation problem? Explain. How can you formulate an assignment problemasastandardlinearprogrammingproblem?Illustrate.Whatdoyou understandbyanassignmentproblem?Giveabriefoutlineforsolvingit.

6.

What are different types of inventories? Explain. What functions does inventoryperform?Statethetwobasicinventorydecisionsmanagementmust makeastheyattempttoaccomplishthefunctionsofinventoryjustdescribed byyou.

7.

Whatisqueuingtheory?Whattypeofquestionsaresoughttobeansweredin analyzingaqueuingsystem?Giveageneralstructureofthequeuingsystem

andexplain.Illustratesomequeuingsituations.Whatisqueuingtheory?In whattypesofproblemsituationscanitbeappliedsuccessfully?Discussgiving examples.

8.

What is a replacement problem? Describe some important replacement situations and policies. Briefly explain the costs which are relevant to decisionsforreplacementofdepreciableassets.Illustratetheirbehaviourand explainhowtheoptimaltimeforreplacementofanassetcanbedetermined. 3 3

9.

WhatkindsofdecisionmakingsituationsmaybeanalysedusingPERTand CPMtechniques?StatethemajorsimilaritiesbetweenPERTandCPM.Under whatcircumstancesisCPMabettertechniqueofprojectmanagementthan PERT? A construction company has received a contract to build an office complex. It has frequently engaged itself in constructing such buildings. Whichofthetwonetworktechniques,PERTandCPM,shouldinyouropinion, beemployedbythecompany?Why?

10.

Describethestepsinvolvedintheprocessofdecisionmaking.Whatarepay offandregretfunctions?Howcanentriesinaregrettablebederivedfroma payofftable?

11.

WhatdoyouunderstandbyMarkovprocesses?Inwhatareasofmanagement can they be applied successfully? What do you understand by transition probabilities?Istheassumptionofstationarytransitionprobabilitiesrealistic, inyouropinion?Whyorwhynot?

12.

ExplainhowtheprobabilitytreehelpstounderstandtheproblemofMarkov processes.Explainthemethodofcalculationofendingupineachabsorbing

state when a chain beings in a particular transient state. What is fundamentalmatrixofMarkovchains?Whatdoesitcalculate?

13.

What is simulation? Describe the simulation process. State the major two reasonsforusingsimulationtosolveaproblem.Whataretheadvantagesand limitationsofsimulation?``Whenitbecomesdifficulttouseanoptimization technique for solving a problem, one has to resort to simulation. Discuss. ``Simulationistypicallytheprocessofcarryingoutsamplingexperimentson the models of the system rather than the system itself. Elucidate this statementbytakingsomeexamples. 4 4

14.

Acompanyhasthreeoffersforitsexistingequipmentinoneofthedivisions. ThefirstbuyeriswillingtopayRs.50,000attheendof8yearsperiod.The secondbuyeroffersRs.39,000consistingofanimmediatepaymentofRs. 14,000 and Rs. 25,000 after 6 years. The third buyer agrees to buy the equipmentforRs.29,000payablerightaway.Whichisthebestofferforthe companyifitcanearnaninterest@8%perannumonthemoneyreceived?

15.

What is the difference between qualitative and quantitative techniques of forecasting. When is a qualitative model appropriate? Briefly discuss the Delphimethodofmakingforecasts.

16.a)

Howdoyoudistinguishbetweenresourcelevelingandresource allocation problems? State and explain an algorithm for resource allocation.

b)

ExplainthefollowingastheyareusedinPERT/CPM

(i)

Betadistribution,and(ii)Budgetoverrun.

17.

Thefollowingtablegivesdataonnormaltimeandcost,andcrashtimeand costforaproject.

`Duration(Weeks) Activity Normal 3 3 5 4 4 3 3 Crash 2 3 3 4 1 2 1

TotalCost(Rs) Normal 300 75 200 120 100 90 60 Crash 450 75 300 120 190 130 110

12 23 24 25 34 46 56 i)

Draw the network and find out the critical path and the normal project duration.

ii)

Findoutthetotalfloatassociatedwitheachactivity.

iii)

IftheindirectcostsareRs.100perweek,findouttheoptimumdurationby crashingandthecorrespondingprojectcosts.

iv)

With the crash duration indicated, what would be the minimum crash durationpossible,ignoringindirectcosts?

18.

Whatisa`gameingametheory?Whatarethepropertiesofagame?Explain the``beststrategyonthebasisofminimaxcriterionofoptimality.Describe themaximinandminimaxprinciplesofgametheory.

19.

Explain the steps involved in solution to dynamic programming problems. Explainthefollowinginthecontextofdynamicprogramming: (a) (b) (c) (d) Stages States Payofffunction Recursiverelationship

20.

Apoliticalcampaignforelectiontotheparliamentisenteringitsfinalstage and prepoll surveys are medicating a very close contest in a certain constituency.Oneofthecandidatesintheconstituencyhassufficientfundsto givefivefullpageadvertisementsinfourdifferentareas.Basedonthepolling information, an estimate has been made of the approximate number (in thousands)ofadditionalvotesthatcanbepolledindifferentareas.Thisis shownbelow.

No.of CommercialAds 0 1 2 3 4 5 A 0 9 15 1 25 31

Area B 0 13 17 21 23 25 C 0 11 1 23 21 27 D 0 7 15 25 29 33

Using dynamic programming, determine how the five commercial ads be distributedbetweenthefourareassoastomaximizetheestimatednumberof votes.