1. Define Operations Research. Give features of OR. Brief discuss techniques and tools of OR.

2. What is the role of decision making in OR? Define scientific decision making and explain how it
affects OR decisions.

3. Bank One is in the process of devising a loan policy that involves a maximum of $12 million. The
following table provides the pertinent data about available loans.

Type of loan Interest rate Bad-debt ratio

Personal 0.140 0.10
Car 0.130 0.07
Home 0.120 0.03
Farm 0.125 0.05
Commercial 100 0.02
Bad debts are unrecoverable and produce no interest revenue.
Competition with other financial institutions dictates the allocation of at least 40% of the
funds to farm and commercial loans. To assist the housing industry in the region, home loans
must equal at least 50% of the personal, car, and home loans. The bank limits the overall ratio of
bad debts on all loans to at most 4%.

4. Reddy Mikks produces both interior and exterior paints from two raw materials, M1 and M2.
The following table provides the basic data of the problem:

Tons of raw material per ton of Maximum daily

Exterior paint Interior paint availability (tons)
Raw material, M1 6 4 24
Raw material, M2 1 2 6
Profit per ton ($1000) 5 4

The daily demand for interior paint cannot exceed that for exterior paint by more than 1 ton.
Also, the maximum daily demand for interior paint is 2 tons.
Formulate the L.P. model.
5. Solve Reddy Mikks problem using graphical method. Reddy Mikks wants to determine the optimum
(best) product mix of interior and exterior paints that maximizes the total daily profit.
6. Solve Reddy Mikks problem using Simplex method. Reddy Mikks wants to determine the optimum
(best) product mix of interior and exterior paints that maximizes the total daily profit.
7. A person wants to decide the constituents of a diet which will fulfil his daily needs of proteins, fats, and
carbohydrates at the minimum cost. The choice is to be made from four diferent types of foods. The
yields per unit of these foods are given in the below table.
Food Type Yield per units Cost per unit (₹)
Proteins Fats Carbohydrates
1 3 4 6 45
2 4 2 4 40
3 8 7 7 85
4 6 5 4 65
Minimum 800 200 700
Requirement

Formulate the LP model for the problem.

8.

9.

10.
Solve using Simplex method.