Final Assessment Test - November 2016

Course: MEE437 - Operations Research

Class NBR(s): 2589 / 2590 / 2592 / 2594 Slot: A1+TA1
Time: Three Hours Max. Marks: 100

Answer any FIVE Questions

(5 X 20 = 100 Marks)
1. Solve the following problem (LPP) by Two Phase Method for optimum solution
Minimize Z = 6x1+21 x2
Subject to the constraints,
x1 + 2x2  3
x1 + 4x2  4, Where x1, x2  0
2. A company has to transport its product from 3 plants to 3 distribution centers. The availability and
demand of product , with unit transportation costs in rupees are given below. Find the optimal
transportation cost using VAM and MODI method.

Distribution centers
Plant D1 D2 D3 D4 Availability
A 19 30 50 10 7
B 70 30 40 60 9
C 40 8 70 20 18
Demand 5 8 7 14
3. a) A car hire company has one car at each of five depots P,Q,R,S, and T. A customer requires a car in [10]
each town, namely A, B, C, D and E. The profit earned by the car by operating it between depots
(origins) and towns (destinations) are given in the following matrix. How should cars be assigned
to customers so as to Maximize the profit using Hungarian Assignment model?
P Q R S T
A 20 22 27 32 36
B 19 23 29 34 40
C 23 28 35 39 34
D 21 24 31 37 42
E 24 28 31 36 41
b) There are 4 jobs 1,2,3 and 4 are to be processed on each of five machines A,B,C,D and E in the [10]
order ABCDE. Find the total minimum elapsed time and the idle time of each machine.
Jobs
I II III IV V

Machines
A 11 13 9 16 16
B 4 3 5 2 6
C 6 7 5 8 4
D 15 8 13 9 11

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4. The following table lists the jobs of a network along their time estimates. Draw the project network.
Find expected duration and variance of each activity. Find Earliest Occurrence time (E) and latest
Occurrence time (L) for each event. Find the critical path and find its expected duration. What is the
probability that the jobs on the critical path will be completed in 41 days.

Job 1-2 1-6 2-3 2-4 3-5 4-5 6-7 5-8 7-8
Optimistic 3 2 6 2 5 3 3 1 4
Most likely 6 5 12 5 11 6 9 4 19

Pessimistic 15 14 30 8 17 15 27 7 28

5. a) A company has a demand of 12,000 units/year for an item and it can produce 2,000 such items [12]
per month. The cost of one setup is 400 Rupees and the holding cost/unit/month is Rupees 0.15.
Find a)The optimum lot size b) The total cost per year, assuming the cost per unit as Rupees 4.
c)The maximum inventory d) Time between each manufacturing setup e) Number of setups.
b) A manufacturing company forecast a demand of 750 pots per month. The purchase cost / pot is [8]
Rupees 2 and the carrying costs are estimated to be 30% of the average inventory. This ordering
cost is Rs.20 per order. Assume deterministic conditions.
What is the optimal quantity to be ordered?
What is the optimal number of orders?
What is the optimum time between two consecutive orders ?
Find the total cost per year.
6. a) In a petrol pump, customers (cars) arrive according to a poison distribution process with an [15]
average time of 5 minutes between arrivals. The service time is exponentially distributed with
mean time = 2minutes. Determine a)What would be the average queue length? b)What would
be the average number of customers in the queuing system? c)What would be the average time
spent by a car in the petrol pump? d) What would be the average waiting of a car before
receiving petrol? e) Idle time of petrol pump in a 12 hours day
b) Write a brief note on Simulation [5]
7. a) The initial cost of a machine is Rs. 12000 and the trade-in value drops as time passes until it [12]
reaches a constant value of Rs. 400. The following table is given the operating cost, maintenance
cost, Losses due to break down and the trade-in value of the machine. When the machine should
be replaced if money value does not change with time.

Year of Service 1 2 3 4 5 6
Ttrade-in value (Resale value) Rs. 6000 3000 1500 800 400 400
Annual operating cost (Running cost) Rs. 1200 1200 1400 1600 2000 2600
Annual maintaining cost (Cost of spares) Rs. 200 400 700 1000 1400 1600
Losses Due to breakdown Rs. 600 800 700 1000 1200 1600

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b) Solve the game by arithmetic method whose pay-off matrix is given below [8]

Player B
Player A B1 B2
A1 2 -1
A2 0 5

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