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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.
State the advantages and disadvantages of using graphical
method in a LPP.
1 2 2. What is a transportation problem?
1 3.
Mention the methods to find out the IBFS and Optimal solution
2
in a transportation problem.
2 1 4. State the mathematical representation of transportation method.
3 1 5. What is a decision tree?
1 6.
What is meant by unbalanced assignment problem and
3
balanced assignment problems
2 7.
List out the various costs involved in inventory and define
4
them.
4 2 8. What is a game theory? State dominance property.
5 2 9. What are replacement policies? Explain them.
5 1 10. What is meant by an economic life of an asset?
PART – B (5X13=65)
A) Use Big M Method to solve the following LPP
Max Z = 2x1+3x2+4x3
Subject to
2
3X1 + X2+4x3 ≤ 600
2x1 + 4x2 + 2x3 ≥ 480
1 11. 2xq + 3x2+ 3x3 = 540
X1, x2, x3 ≥ 0
(OR)
B)1. Write the procedure /algorithm for transportation problem.
2 2. Write the procedure /algorithm for assignment problem.

2 3 12. A) A company manufacturing air-coolers has two plants

located at X and Y with a capacity of 200 units and 100 units
per week respectively. The company supplies the air-coolers to
its four show rooms situated at A, B, C and D which have a
 maximum demand of 75, 100, 100 and 30 units respectively.
Due to the differences in raw material cost and transportation
cost, the profit per unit in rupees differs which is shown in the
table below.
A B C D
X 90 90 100 110
Y 50 70 130 85
Plan the production programme so as to maximize the profit.
(Use VAM for finding starting Basic Feasible solution.
(OR)
B) A salesman has to travel to five cities in a month without
revisiting any city. Determine an optimal travel plan for the
time matrix given.

3 13. A) A retail store desires to determine the optimal daily order

size for a perishable item. The store buys the perishable item at
the rate of Rs. 80 per kg and sells at the rate of Rs. 100 per kg.
if the order size is more than the demand, the excess quantity
can be sold at Rs. 70 per kg in a secondary market otherwise,
the opportunity cost for the store is Rs. 15 per kg for the
4 unsatisfied portion of the demand. Based on the past
experience, it is found that the demand varies from 50 kg to
250 kg in steps of 50 kg. The possible values of the order size
are from 75 kg to 300 kg in steps of 75 kg. Determine the
optimal order size which will maximize the daily profit of the
store.
(OR)
4 B) A company owns an oil field which wants to take decision
of either to dig the well or leave it for lease. If the company
lease the field it will get Rs. 75,000.Various possible drilling
results are as under along with the probabilities of happening
and rupee consequences. Draw a decision tree and solve it.
 Possible results Probability Rupee Consequences
Dry well 0.1 -1,00,000
Gas well only 0.4 45,000
Oil &Gas Combination 0.3 98,000
Oil well 0.2 1,99,000
2
A) Explain the different replacement models in detail.
(OR)
B) The cost of a machine is Rs. 6100 and the scrap value is Rs.
100. The maintenance costs found from experience are as
4 14.
3
follows:
Year: 1 2 3 4 5 6 7 8
M.C 100 250 400 600 900 1200 1600 2000
When should the machine be replaced?
A) Explain the various decision making criterions under
uncertainty with suitable examples.
(OR)
B) Reduce the following game by dominance and find the game
value:
3 Player B
5
I II III IV
I 3 2 4 0
Player A II 3 4 2 4
III 4 2 4 0
IV 0 4 0 8
PART – C (1X15=15)
A) Solve the following LPP
Maximise Z= 1000x1 + 4000x2 +5000x3
Subject to
6
3x1 + 3x3 ≤22
x1+ 2 x2 + 3x3 ≤ 14
4 16.
3x1+ 2 x2 ≤ 14
x1 , x2 ≥ 0
(OR)
B) 1. Solve the following m x 2 game graphically:
6
 2. Solve the following 2 x n game graphically.
Player
B
1 2 3 4 5
Player A -5 5 0 -1 8
8 -4 -1 6 -5

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