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New Horizon Leadership Institute Ring Road, Panathur Post, Near Marathahalli Bangalore-560 087 Approved by AICTE, ministry of HRD, Govt of India An ISO 9001:2000 certified institute Sub: Quantitative Techniques in Management - II Sub Code: PGDM 201 Duration: 3 Hours Total Marks:100

09 PGDM 201

Section-A (Answer all the Questions) 1. 2. 3. 4. 5. 6. 7. 8.

20x1=20

9. 10. 11.

12.

13. 14.

15. 16.

Operations research is not related with Mathematical models [True/False]. Operations research approach is a multi-disciplinary approach [True/False]. An LPP can have only two decision variables [True/False]. The pivot element in the simplex table is always negative [True/False]. The surplus variables cannot appear in the basis of the optimal solution to a LPP [True/False]. Stepping method is used to find basic feasible solution of transportation problem [True/False]. Critical path provides shortest route on the network diagram [True/False]. Decision variables are, a). variables expressing the objective of the decision-maker, b). linear equations arising out of practical limitations, c). variables where the objective function is maximized or minimized, d). economic or physical quantities whose numerical values indicate the solution of the linear programming problem. Net evaluation value in the simplex table is calculated by, b). Zj c). bi /aij d). Cj - Zj a). Cb Xb The optimum solution of a maximization LPP is indexed by, a). if all Cj - Zj 0 b). if all Cj - Zj < 0 c). if all Cj - Zj 0 d). if all Cj - Zj > 0. Optimum time for replacement of a machine is the period when, a). Average cost is maximum b). Average cost is minimum c). Average cost is zero d). Average cost is equal to cost price. Under PERT the critical path is identified with the help of, a). Pessimistic duration b). Optimistic duration c). Most likely duration d). expected duration of activity. Under MODI method optimum solution is achieved if, b). all ij 0 c). all ij > 0 d). all ij < 0. a). all ij 0 The disadvantage of North-West corner rule is, a). It is complicated to use b). It does not take into account of transportation cost c). It leads to degenerate initial solution d). All of the above. The method used for solving an assignment problem is called as, a). MODI method b). Hungarian Method c). Big-M Method d). Gantt chart. Match the following: a). Mathematical model 1. Replacement Model b). Big-M method 2. Sequencing Problem c). m + n 1 3. Linear Programming Problem d). Gantt chart 4. Travelling salesman problem e). Sudden failure 5. Non-Gene racy 6. Artificial Variable technique 4 x 5 = 20

Section B (Answer any four) 21. Write down the steps involved in Hungarian Algorithm.

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09 PGDM 201

22. A 24-Hour supermarket has the following minimal requirement for cashiers. 1 2 3 4 5 6 7 8 9 10 11 12 Period 03-05 05-07 07-09 09-11 11-13 13-15 15-17 17-19 19-21 21-23 23-01 01-03 Time 07 09 15 18 20 23 26 20 19 15 12 09 Requirement Period 1 follows immediately after period 12. A cashier works eight consecutive hours, starting at the beginning of the 12 time periods. Determine a daily employee worksheet which satisfies the requirements with the least number of personnel. Formulate the problem as a LPP. (5) 23. Solve the following LPP: Maximise Z = 10X1 + 15X2 Subject to, 2X1 + X2 26; 2X1 + 4X2 56; X1 X2 -5; X1, X2 0. (5) 24. As company is faced with the problem of assigning four jobs to four different machines(One machine to one job only). The profits are estimated as follows.(5) Machine(s) Job(s) I II III IV 42 35 28 21 A 30 25 20 15 B 30 25 20 15 C 24 20 16 12 D 25. On a certain building contract, the work of cutting and bending steel is subcontracted. The work is planned in a number of well defined sections. The order in which the steel is cut, bent and fixed by the main contractor is immaterial. But it is advisable to reduce the overall duration of completing the work from beginning to end. The estimated time for both the processes is as follows. Job in section A B C D E F G H 14 26 17 11 09 26 18 15 Cutting 21 15 16 21 22 12 13 25 Fixing Work out the sequence of work which will reduce overall duration. What is the idle in both the operations? What is the overall duration? (05) Answer any Four Section C 04 X 10 = 40 26. Write down Simplex algorithm to solve LPP. 27. Solve the following LPP: Maximise Z =X1 + 2X2 + 3X3 X4 Subject to, X1 + 2X2 + 3X3= 15; 2X1 + X2 + 5X3 = 20; X1 + 2X2 + X3 + X4 = 10; X1, X2, X3, X4 0. 28. Find Optimum solution to the following Transportation Problem: Destination(s) Source(s) Supply D1 D2 D3 D4 19 30 50 10 07 S1 70 30 40 60 09 S2 40 08 70 20 18 S3 05 08 07 14 Demand

29. A salesman must travel from city to city to maintain his accounts. This week he has to leave his home base and visit other cities and return home. The table shows the distances (in KMs) between the various cities. Determine the tour that will minimize the total distance of visiting all the cities. From To

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09 PGDM 201

A B C D E -375 600 150 190 A 375 -300 350 175 B 600 300 -350 500 C 160 350 350 -300 D 190 175 500 300 -E 30. A computer contains 1000 resisters. When any resister fails, it is replaced. The cost of replacing a resister individually is rupees one only. If all the resisters are replaced at the same time, the cost per resister would be reduced to 35 paise. The probability of failure p(t) during the month t is as follows. 1 2 3 4 5 6 T 0.03 0.07 0.20 0.40 0.15 0.15 P(t) Determine the optimum replacement plan. Compulsory. Section D 01 X 20 = 20 1. A multinational FMCG company wishes to launch a new product in the coming season. A brief description of the activities associated with the project, their expected duration (in Weeks) and the activities relations are as follows. Sl. No Activity Description Predecessor Optimistic Likely Pessimistic 1. A Management Approval -2 2.5 4 2. B Product concept test A 3 4.7 5 3. C Technical feasibility A 2 2 3 4. D Recipe finalization C, B 1 1 2 5. E Shelf life trails D 8 12 15 6. F Brand positioning study B 4 5 7 7. G Packaging key lines F 1 1 2.5 8. H Agency advertisement F, E 4 8 10 development 9. I Agency: Layout artworks G 2 3 5 10. J Advertisement test research H 3 4 5 11. K Cost finalization D 1 1 2 12. L Pricing decision J, F 1 1.5` 3 13. M Marketing mix finalization L 2 2.5 3 14. N Pos development M 2 4 5 15. O Launch Plans M 1 1 1.5 16. P Branch Communication O 0.52 0.5 1 17. Q Suppliers delivery packaging H 4 5 8 18. R Production trail D, Q 1.5 2 3 19. S Managing final approval R 0.5 1 1.5 20. T Final production S 1 2..5 3 21. U Stock movement T 0.5 1.5 2 22. V Position movement T 0.5 1 1.5 23. W Launch U, V 1 2 4 Management of the company desires to know the realistic completion time for this project and detailed analysis of float (if any). Also determine the probability of completing the project by 2 weeks earlier than the expected project completion time.