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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. What is the procedure for forming a LPP model?
1 1 2. Define the term Artificial variable in LPP.
1 3.
Express the balanced and unbalanced transportation problem in
2
mathematical form.
2 4.
What is the difference between transportation problem and
2
assignment problem?
3 1 5. Define payoff matrix in a game.
3 1 6. What are the steps in Decision making process?
2 7.
What are the basic replenishment decisions in Inventory
4
Control?
1 8.
Define a) progressive failure and b) random failure in
4
Replacement model.
5 2 9. What is the Kendal’s notation for Queuing model?
5 1 10. What are the advantages of simulation?
PART – B (5X13=65)
1 11. A) Solve the LPP using Two phase Simplex method:
Minimise Z= - 2x1 –x2
Subject to
2 X1 + X2 >= 2
X1 + X2 = 4
X1, X2>=0
(OR)
2 B) Solve the LPP using graphical method.
Maximise Z = X1- 2X2
Subject to
-X1 + X2= 1
6X1 + 4X2>= 24
X1 <= 5
2<= X2<= 4
X1, X2 >= 0
 A) Find the initial solution for the following transportation
problem using VAM and find optimal solution using MODI
method.
14 56 48 27 70
3
82 35 21 81 47
99 31 71 63 93
70 35 45 60
(OR)
2 12.

B) A company has four machines to do three jobs. Each job

can be assigned to one and only machine. The cost of each job
on each machine is given in the following table. Solve the
assignment problem to minimize the cost using Hungarian
3 algorithm/Branch and bound method.
M1 M2 M3 M4
J1 18 24 28 32
J2 8 13 17 19
J3 10 15 19 22

A) The probability of the demand for Lorries for hiring on any

day in a district is as follows:
No. of Lorries demanded: 0 1 2 3 4
Probability: 0.1 0.2 0.3 0.2 0.2
4
Lorries have a fixed cost of Rs. 90 each day to keep the daily
hire charges. The variable costs of running are Rs. 200. If the
lorry hire company owns 4 lorries, what is its daily
expectation? If the company is about to go into business and
3 13.
currently has no Lorries, how many lorries should it buy?
(OR)

B) Solve the following 2 x n game by method of sub-game:

4
B1 B2 B3
A1 1 3 11
A2 8 5 2
4 2 14.
A) An aircraft company uses rivets at an approximately
 constant rate of 5000 kg per year. The rivets cost Rs. 20 per kg
and the company personnel estimate that it costs Rs. 200 to
place an order and the carrying cost of inventory is 10% per
year. a) How frequently should orders for rivets be placed and
what quantities should be ordered for? b) If the actual costs are
Rs. 500 to place an order and 15% for carrying cost, how much
the company is losing per year?
(OR)

B) A manufacturer is offered two machines A and B. Machine

A is priced at Rs. 5000 and running costs are estimated at Rs.
800 for each of the first five years, increasing by Rs.200 per
year in the sixth and subsequent years. Machine B which has
3 the same capacity as A, costs Rs. 2500 but will have running
costs of Rs.1200 per year for six years, increasing by Rs 200
per year thereafter. If money is worth 10% per year which
machine should be purchased? Assume that the machines will
eventually be sold for scrap at a negligible price?

A) Solve the following programming problem by simplex

method:
Maximise Z = 3x + 2y
Subject to 2x + y ≤ 6
4 X + 2y ≤ 6
X, y >= 0.
Also solve if b1≤8 and b2≤10 using sensitivity analysis
method.
5 15. (OR)

B) Cars arrive at a petrol pump having one petrol unit in

Poisson fashion with an average of 10 cars per hour. The
5
service time is distributed exponentially with a mean of 3
minutes. Find i) average number of cars in the system (ii)
average waiting time in the queue (ii) average queue length (iv)
the probability that the number of cars in the system is 2.

PART – C (1X15=15)
1 6 16. A) An animal feed company has to produce 200 kg of a feed
mixture consisting of two ingredients A and B. The ingredient
A costs Rs. 3 per Kg. and B costs Rs. 5 per kg. Not more than
 80 kg of ingredient A can be used and atleast 60 kg of
ingredient B must be used. Formulate the LPP to minimize the
total cost. Using simplex method find how much of each
ingredient should be used to minimize the cost, and determine
cost of optimum mix?
(OR)

B) Consider the following transshipment problem involving 4

sources and 2 destinations. The supply values of the sources
S1, S2, S3 and S4 are 100 units, 200 units, 150 units and 350
units respectively. The demand values of destinations D1 and
D2 are 350 units and 450 units respectively. The
transportations cost per unit between different sources and
destinations are summarized as in table. Solve the
6 transshipment problem.
Destination
S1 S2 S3 S4 D1 D2
S1 0 4 20 5 25 12
Sourc S2 10 0 6 10 5 20
es S3 15 20 0 8 45 7
S4 20 25 10 0 30 6
D1 20 18 60 15 0 10
D2 10 25 30 23 4 0

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