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Department of Management Studies

MODEL BA4201 / QUANTITATIVE TECHNIQUES
Test Sub/Code:
EXAM FOR DECISION MAKING
Year/ SEM: I/ II Date: /06/2024
Time: 3 Hrs Marks 100

C Leve Q.n
PART – A (10X2=20)
O l o
1 1 1. Define linear programming.
1 2 2. Identify the requirements for a linear programming problem.
1 3.
What is North- West corner rule in transportation model and
2
where to start the first allotment?
2 1 4. State the mathematical representation of Assignment model.
3 1 5. List the steps in Decision theory approach.
3 1 6. What is statistical Decision Analysis?
4 2 7. State the necessity for maintaining inventory?
2 8.
Distinguish between breakdown maintenance and preventive
4
maintenance.
5 2 9. State the application areas of queuing system.
5 1 10. What are the major steps of simulation?
PART – B (5X13=65)
1 11. A) Express the following linear programming problem in the
standard form and find the optimal solution.
Maximise Z = 3X1 + 2X2 + 5X3
2
2X1 – 3X2 <= 3
X1 +2X2 +3X3 >= 5
3X1 + 2X2 <= 2
X1,X2 >= 0
(OR)
2 B)I)Find the basic solutions to the following problem (7 marks)
Maximise Z= X1 + 3X2 + 3X3
Subject to
X1 + 2X2 +3X3 = 4
2X1 + 3X2 + 5X3 = 7
Also find which of the basic solutions are i) Basic feasible ii)
Non degenerate basic feasible, iii) Optimal basic feasible.
 II) Solve the following LPP by graphical method:(6 marks)
Maximise Z = X1 + X2
Subject to
X1 + X2 ≤ 1
-3X1 + X2 ≥ 3
X1, X2 ≥ 0
A) A company has a team of four salesmen and there are four
districts where the company wants to start its business. After
taking into account the capabilities of salesmen and the nature
of districts, the company estimates that the profit per day in
rupees for each salesman in each district is as below:

2 12.

(OR)
B) Find the optimum solution to the following transportation
problem in which the cells contain the transportation cost in
rupees.
7 6 5 4 9 40
3
8 5 6 7 8 30
6 8 9 6 5 20
5 7 7 8 6 10
30 30 15 20 5
3 13. A) An ice cream retailer buys ice cream at a cost of Rs. 5 per
cup and sells it for Rs. 8 per cup; any remaining unsold at the
end of the day can be disposed of at a salvage price of Rs.2 per
cup. Past sales have ranged between 15 and 18 cups per day;
there is no reason to believe that sales volume will take on any
4
other magnitude in future. Find the EMV if the sales history has
the following probabilities:
Market size 15 16 17 18
Probability 0.1 0.2 0.4 0.3
(OR)
4 B) Two players P and Q play a game. Each of them has to
choose one of the three colours, white (W), black(B) and Red®
independently of the other. There after the colours are
compared. If both P and Q have chosen white (W, W) neither
wins anything. If player P selects white and player Q black (W,
 B) player P loses Rs. 2 or player Q wins the same amount and
so on. The complete payoff table is shown below. Find the
optimum strategies for P and Q and the value of the game.
Color chosen by Q
Color chosen by P WB R
W 0 -2 7
B 2 56
R 3 -3 8
A) Alpha industry needs 5400 units per year of a bought-out
component which will be used in its main product. The
2
ordering cost is Rs. 250 per order and the carrying cost per unit
per year is Rs. 30. Find the economic order quantity and the
number of orders per year.
(OR)
B) Find the optimal order quantity for which the price breaks
4 14.
are as follows:
Quantity Unit cost
3
0<= Q1 < 500 Rs. 10
500 <= Q2 < 750 Rs. 9.25
Q3 >= 750 Rs. 8.75
The monthly demand for the product is 200 units, shortage cost
is 2% of the unit and the cost of ordering is Rs 100.
A) i) Enumerate the basic characteristics features of queuing
models. (7)
4 ii) Discuss the applications advantages and disadvantages of
Monte Carlo simulation technique. (6)
(OR)
B) A tourist car operator finds that during the past few months
the car’s use has varied so much that the cost of maintaining the
car varied considerably. During the past 200 weeks the demand
5 15. for the car fluctuated as below, using random numbers simulate
the demand for a 20 weeks period and estimate average
demand.
5 TRIPS 0 1 2 3 4 5
PER
WEEK
FREQUE 16 24 30 60 40 30
NCY

Random nos.: 97, 20, 74, 94, 22, 93, 45, 44, 16, 4, 32, 02, 80,
66, 96, 55, 50, 29, 58.
PART – C (1X15=15)
4 6 16. A) The failure rates of 1000 street bulbs in a colony are
summarized in table.
End of the month: 123456
 Probability of failure to date: 0.050.2 0.4 0.65 0.83 1.00
The cost of replacing an individual bulb is Rs. 60. If all the
bulbs are replaced simultaneously it would cost Rs. 25 per bulb.
Any one of the following two options can be followed to
replace the bulbs.
i) Replace the bulbs individually when they fail (individual
replacement policy)
ii) Replace all the bulbs simultaneously at fixed intervals and
replace the individual bulbs as and when they fail in service
during the fixed interval (group replacement policy)
Find out the optimal replacement policy, i.e., individual
replacement policy or group replacement policy? If group
replacement policy is optimal, then find at what equal intervals
should all bulbs are replaced.
(OR)
B) Workers come to tool store room to receive special tools for
accomplishing a particular project assigned to them. The
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average time between two successive arrivals is 60 seconds and
the arrivals are assumed to be in Poisson distribution. The
average service time of the tool room attendant is 40 seconds.
Determine (i) Lq (ii) Ls (iii) Wq (iv) Ws (v) Po.

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