American International University-Bangladesh (AIUB)

Faculty of Business Administration (FBA)

MBA Program, Managerial Decision Models [MBA] [A]
Spring 2021-22/ Mid Assessment/ Total Marks: 30

Duration: 1:20 Hours

Please upload your HAND WRITTEN answers to the following link

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PART A: Problem Solving [Answer any TWO] [Marks: 2*12= 24]

1. A small construction firm specializes in building and selling single-family homes. The firm offers two basic
types of houses, model A and model B. Using the information given in the table below, what mix of model A
and B houses should the firm construct? Assume that the firm will be able to sell all the units it builds.

Model A Model B Maximum Available

Resource

Profit per unit $3,000 $6,000

Labor requirements 4,000 hours 10,000 hours 400,000 hours

Stone requirements 2 tons 3 tons 150 tons

Lumber requirements 2,000 board feet 2,000 board feet 200,000 board feet

2. The tasks shown in the following table are to be assigned to workstations. Management has designed an
output rate of 60 units per day. Assume 480 minutes are available per day.
i) Draw precedence diagram
ii) Compute the cycle time: (CT) =
iii) Compute the total time: (t) =
iv) Determine the minimum number of required workstation: (Nmin) =
v) Compute the idle time and production line efficiency:

Task Duration (Minute) Predecessor

a 3 -
b 5 -
c 7 -
d 9 a, b
e 2 c, d
f 6 e
3. Perform Decision Tree Analysis. Show all your work and output on the figure below and indicate the best
decisions. Will you develop a new product or consolidate? Give reason behind your decision.

620,000

PART B: Short Question [Answer any TWO] [Marks: 2*3=6]

Q1. Discuss the steps of decision implementation plan

Q2. Determine the criteria toward effective group decision making
Q3. Briefly describe the two main layout types.