NATIONALUNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF INDUSTRIAL TECHNOLOGY

DEPARTMENT OF INDUSTRIAL AND MANUFACTURING

ENGINEERING

B-Eng Hons Industrial and Manufacturing Engineering

2nd Semester Examination

COURSE : OPERATIONS RESEARCH

CODE : TIE 5208

DATE : MAY 2013

DURATION : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. Answer ANY Four (4) questions.

2. All questions carry 25 marks each.
3. This paper contains five (5) questions.
4. There are three (4) printed pages (including the cover page).

REQUIREMENTS

Graph Paper

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Question 1

(a) Describe how you would use Operations Research techniques to solve problems in the following
areas;
i. Traffic flow optimisation [4]
ii. Resource allocation [4]
iii. Staff allocation [4]
iv. Fraud prevention, Anti money laundering [4]
(b) Discuss the principle behind the Bayesian Probability. [3]
(c) Detail the major advantages and disadvantages of using the Inter-disciplinary Team approach in
solving Operations Research problems. [6]

Question 2

Cars are shipped by truck from three distribution centres to five dealers. The shipping cost is based on
the mileage between sources and destinations. This cost is independent of whether the truck makes the
trip with a partial or a full load. Table Q2 below summarizes the mileage between the distribution
centres and the dealers as well as the monthly supply and demand figures estimated in number of cars.
Each truck can carry a maximum of 18 cars.

Table Q2.

Dealers
1 2 3 4 5 Supply
Distribution 1 100 150 200 140 35 100
Centres 2 50 70 60 65 80 200
3 40 90 100 150 130 150
100 200 150 160 140
a) Given that the transportation cost per truck mile is $10, formulate and solve this problem as a
transportation model. [20]
b) Calculate the total mileage and the cost of this distribution [5]

Question 3

(a) A company produces two types of cowboy hats. Each hat of the first type requires twice as much
labour time as does each hat the second type. If all hats are of the second type only, the company
can produce a total of 500 hats a day. The market limits daily sales of the first and second types to
150 and 200 hats. Assume that the profit per hat is $8 for type 1 and $5 for type 2. Determine the
optimal allocation of the raw material to the two products. [15]
(b) Describe the role of slack variables in the Simplex Algorithm. [4]
(c) Two products are manufactured by passing sequentially through three machines. The machine time
allocated to the two products is limited to 10 hours per day. The production time and profit per unit
of each product are given in Table Q3. below.

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 Table Q3.

Minutes per Unit

Product Machine 1 Machine 2 Machine 3 Profit
1 10 6 8 $2
2 5 20 15 $3

Find the optimal mix of the two products. [6]

Question 4

(a) Table Q4 below provides data for building a new house.

Table Q4

Activity Description Immediate Duration

Predecessor (s) (Days)
A Clear Site - 1
B Bring utilities to site - 2
C Excavate A 1
D Pour foundation C 2
E Outside plumbing B,C 6
F Frame house D 10
G Electric wiring F 3
H Lay floor G 1
I Lay roof F 1
J Inside plumbing E,H 5
K Shingling I 2
L Outside sheathing F, J 1
insulation
M Install windows and outside F 2
doors
N Brick work L, M 4
O Insulate walls and ceiling G, J 2
P Cover walls and ceiling O 2
Q Insulate roof I, P 1
R Finish interior P 7
S Finish exterior I, N 7
T Landscape S 3

i. Construct the associated network model. [8]

ii. Carryout the critical path computations. [10]

Page 3 of 4
 iii. Construct the new network model if the duration for activities B, C and K are 5, 6 and 7
respectively. [7]

Question 5

(a) What are the characteristics of the Re-order Level System of Inventory Control? [5]
(b) What are the major advantages and disadvantages of the Periodic Review system of Inventory
control? [8]
(c) Explain the meaning of the terms when applied to the planning and control of inventory.

(i) Deterministic [2]

(ii) Stochastic [2]

(d) The forecast annual demand for a particular product sold by a retail store is 600 units; the cost is
$60 per unit. The cost of ordering and receiving delivery is $15 on each occasion. Stockholding costs are
20% per annum of stock value.

You are required to:

i. Derive the basic economic batch quantity (EBQ) formula defining any symbols used and
stating clearly the assumptions you have made. [5]
ii. Calculate the optimum order quantity if there is to be instantaneous delivery of an order.

[3]

END

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