Prestige Institutes of Management & Research, Indore

MBA (FT) – II Sem

Assignment on Operations Research

1. A company has four territories open, and four salesmen available for assignment. The
territories are not equally rich in their sales potential; it is estimated that a typical
salesman operating in each territory would bring in the following annual sales:
Territory : I II III IV
Annual Sales (Rs.) : 60,000 50,000 40,000 30,000
Four salesmen are also considered to differ in their ability, it is estimated that, working
under the same conditions, their yearly sales would proportionately as follows:
Territory : A B C D
Annual Sales (Rs.) : 7 5 5 4
If the criterion is maximum expected total sales, then intuitive answer is to assign the best
salesman to the richest territory, the next best salesman to the second richest, and so on.
2. A company has 4 warehouses & 6 stores. The warehouses altogether have a surplus of 22
units of a given commodity divided among as follows:

Warehouses: 1 2 3 4

Surplus: 5 6 2 9

The 6 stores altogether need 22 units of commodity. Individual requirement at stores 1, 2,

3, 4, 5 & 6 are 4, 4, 6, 2, 4 & 2 units respectively. Its cost matrix is-

STORES

W I II III IV V VI

I 9 12 9 6 9 10

II 7 3 7 7 5 5

III 6 5 9 11 3 11

IV 6 8 11 2 2 10

3. A computer contains 10,000 resistors. When any one of the resistor fails, it is replaced.
The cost of replacing a resistor is Rs. 10 only. If all the resistors are replaced at the same
time, the cost per resistor is reduced to Rs. 3.50. The % surviving by the end of month is
as follows:
Month (t) : 0 1 2 3 4 5 6
% surviving by the end of month : 100 97 90 70 30 15 0
 At what intervals all transistors should be replaced? At what group replacement price per
transistor would a policy of strictly individual replacement become preferable to the adopted
policy?
4. A company manufactures around 200 mopeds. Depending upon the availability of raw
materials and other condition, the daily production has been varying from 196 mopped to 204
mopped, whose probability distribution is as given below:
Production of per day 196 197 198 199 200 201 202 203 204
Probability 0.05 0.09 0.12 0.14 0.20 0.15 0.11 0.08 0.06
The finished mopeds are transported in a specially designed three stored lorry that can
accommodate only 200 mopped. Using the following 15 random numbers 82, 89, 78, 24, 53,
61, 18, 45, 04, 23, 50, 77, 27, 54, 10, simulate the process to find out:
a) What will be the average number of mopeds waiting in the factory?
b) What will be the average number of empty space on the lorry?
5. In a certain market only two brands of lipsticks A and B, are sold. Given that a lady last
purchased lipstick A, there is 80% chance that she would buy the same brand in the next
purchase, while if a lady purchased brand B, there is 90% chance that her next purchase
would be brand B. using this information, develop the transition probability matrix.
Calculate:
a) The probability that if a customer is currently a brand A purchaser, she will purchase
brand B two purchases from now;
b) The probability that if a customer is a brand B purchaser, she will purchase brand A
three periods from now;
c) The probability that three periods from now, a customer shall buy brand B, given that
the market share of
d) The steady state probabilities.
6. Maximize Z = 3x + 2y
Sub. to constraints x + y ≤ 4
x - y ≤ 2, x, y ≥ 0