QUESTION BANK ON OPERATIONS RESEARCH UNIT-1: Basics of operations research Q1. Discuss the origin and development of OR.

Q2. How computer has helped in popularizing OR? Q3. What are the limitations of OR? Q4. Describe the various objectives of OR. Q5. What are the main characteristics of OR? Explain with suitable examples. Q6Give features of OR. Briefly discuss technique and tools of OR. Q7. What is the role of decision making in OR. Explain its scope. Q8. OR is the application of scientific methods, technique and tool to problems involving the operation of a system so as to provide those in control of the system with optimum solution to the problems. Q9. Discuss the significance and scope of OR in modern management. Q10. Mathematics of OR is mathematics of optimization. Discuss. Q11. OR is an aid for the executive in making his decision by providing him with the needed quantitative information, based on the scientific method analysis. Discuss the statement in detail, illustrating it with OR methods that you know. Q12. Discuss in brief the role of OR model in decision making.

UNIT-2: Linear Programming Q1. What are the essential characteristics of a linear programming model? Q2.What is linear programming? Discuss the application of linear programming to managerial decision making. Q3 Discuss the assumption of proportionality, additivity, continuity, certainty and finite choices in the context of linear programming problems. Q4. Explain the meaning of linear programming problem stating its uses and give its limitations. Q5. Write at least five application areas of linear programming. Q6. A small manufacturer employs 5 skilled men and 10 semi skilled men and makes an article in two qualities, a deluxe model and an ordinary model the making of deluxe model requires 2 hours work by a skilled man and 2 hours work by a semi-skilled man. The ordinary model requires 1 hour work by a skilled man and 3 hour work by a semiskilled man. By union rules no man can work more than 8 hours per day. The manufacturers clear profit of the deluxe model is Rs.10 and of ordinary model Rs.8. Formulate the model of the problem. Q7. Old hens can be bought for Rs.2 each but young one cost Rs.5 each. The old hens lay 3 eggs per week, and young one 5 eggs per week, each egg being worth 30 paise. A hen cost Re.1 per week to feed. If a person has only Rs.80 to spend on hens, how many of each kind should he buy to get a profit of more than Rs.6 per week assuming that he cant house more than 20 hens? Q8. A firm manufactures three products A, B, and C. The profits are Rs.3, 2 and 4 respectively. The firm has two machines and required processing time in minutes for each machine on each product is given below: Product A B C Machine X 4 3 5 Y 2 2 4 Machine X and Y have 2000 and 1500 machine minutes respectively. The firm must manufacture 100 As, 200B;s and 50Cs but no more than 150 As. set up an Lp model to maximize the profit. Q9. The manager of an oil refinery has to decide upon the optimal mix of two possible blending processes, of which the input and output per production run are as follows:

Process 1 2

Input Crude A 5 4

Crude B 3 5

Gasoline X 5 4

output Gasoline Y 8 4

The maximum amount available of crude A and B is 200 units and 150 units respectively. Market requirement show that at least 100 units of gasoline X and 80 units of gasoline y must be produced. The profit per production run from process 1 and process 2 are Rs.3 and 4 respectively. Formulate the problem as a linear programming problem.

Q10. A firm can produce three types of clothes say, A,B and C. Three kinds of wool are required for it say, red, green and blue. One unit length of type A cloth needs 2 yard of red wool and 3 yards of blue; one unit length of type B cloth needs 3 yards of red wool, 2 yards of green and 2 yards of blue; and one unit length of type C needs 5 yards of green and 4 yards of blue wool. The firm has a stock of only 8 yards of red wool, 10 of green 15 of blue. It is assumed that the income obtained from one unit length of type A is Rs.3, of type B cloth is Rs.5 and of type C cloth is Rs.4. Formulate LPP. Q11. Why do some problems have multiple optimal feasible solutions? How such information is useful for decision making? Use graphical method to solve the following problem: Q12. Maximize subject to Z=5x1+3x2, x1+x26, 0x13, 0x23, 2x1+3x23 Z=20x1+10x2, x1+2x240, 3x1+x230 4x1+3x260, x1, x20 Z=3x1+2x2, 8x1+x28, 2x1+x26, x1+3x26, x1+6x28, x1, x20

Q13. Minimize subject to

Q14. Minimize subject to

Q15. Maximize subject to

Z= -150x1-100 x2,+280000, 20 x160, 70x2140, 120 x1+x2140, x1, x20

Use simplex method to solve the following problem:

Q16. Maximize subject to

Z= 3x1+2 x2+ 5x3, x1+ x2+ x39, 2x1+ 3x2+ 5x330, 2x1-x2-x38, x1, x2, x30

Q17. Maximize subject to

Z= 2x1+4x2+ x3+ x4, x1+ 3x2+ x44, 2x1+ x23, x2+4x3+x43, x1, x2, x3, x40 Z= 2x1+3x2+ x3+7 x4, 8x1+ 3x2+ 4x3+ x46, 2x1+6x2+ x3+5x43, x1+4x2+5x3+2x47, x1, x2, x3, x40 Z= 6x1+7x2+ 9x3, 3x1+ 7x2+ 6x3 245, 5x1+8x2+ 9x3424, 11x1+6x2+8x3235, x1, x2, x3, 0 Z= 2x1+3x2+ 4x3+x4, -x1- 5x2- 9x3+ 6x42, 3x1-x2+ x3+3x410, 2x1+3x2-7x3+8x40, x1, x2, x3, x40

Q18. Maximize subject to

Q19. Maximize subject to

Q20. Maximize subject to

Q21. Minimize subject to

Z= 4x1-3x2+ 7x3-x4, 7x1+ 3x2400, 5x1 + 4x3250, x1+x4=43, x1,x2,x3,and x4 are non negative and none is below 20.

Solve by Big M-method Q22. Maximize subject to Z= x1+2x2+ 3x3-x4, x1+2x2+3x3=15, 2x1+x2+ 5x3=20, x1+2x2+x3+x4=10, x1, x2, x3, x40

Q23. Maximize subject to

Z= x1+2x2+ 3x3, x1-x2+x34, x1+x2+ 2x38, x1-x3 2, x1, x2, x3,0

Q24. A manufacturer produces three products A, B, and C. Each product requires processing on two machines I & II. The time required to produce one unit of each product on a machine is: Time to produce one unit (hrs.) Product Machine I Machine II A 0.5 0.6 B 0.7 0.8 C 0.9 1.05 There are 850 hrs are available on each machine. The operating cost is Rs.5/hr. for machine I and Rs.4/hr. for machine II. The market requirements are at least 90 units of A, at least 80 units of B and at least 60 units of C. The manufacturer wishes to meet the requirement at minimum cost. Solve the problem by simplex method.

Q25. A factory has decided to diversify its activities. The data collected by sales and production department is summarized below. Potential demand exist for three products A,B and C. market can take any amount of A and C. whereas the share of B for this organization is expected to be not more than 400 units a month.

For every 3 units of C produced, there will be one unit of by-product which sells at a contribution of Rs.3 a unit and only 100 units of this by-product can be sold per month. Contribution per unit of products A,B &C is expected to be Rs. 6, 8 ,4 respectively. These products require three different processes and the time required per unit product is given in the table below: Hours/unit Product B 3 1 2

Process I Ii III

Product A 2 3

Product C 1 2 2

Available hours 900 600 1200

Determine the optimum product mix for maximizing the contribution.

UNIT-3a: Transportation Model

Q1. Explain the following in the context of transportation problem. a) Degenerate transportation problem b) Modified distribution method. Q2. What is degeneracy in transportation problem? How it can be resolved? Q3. What are the conditions for the application of optimality test in case of transportation problem? Briefly explain as to why these conditions should be satisfied? Q4. Find the feasible solution of the following transportation problem using North West corner method. W1 Factory F1 F2 F3 14 65 35 W2 25 25 3 7 W3 45 35 65 6 W4 5 55 15 13 Supply 6 8 16 30 (Total)

Requirement 4

Q5. Find the initial basic feasible solution of the following transportation problem using Vogels approximation method. W1 Factory F1 F2 F3 19 70 40 W2 30 30 8 8 W3 50 40 70 7 W4 10 60 20 14 Capacity 7 9 18 34 (Total)

Requirement 5

Q6. Find the initial basic feasible solution of the following transportation problem using North West corner method and Vogels approximation method.

A1 Origin A B C 2 1 3

B1 11 4 9 3

C1 10 7 4 4

D1 3 2 8 5

E1 7 1 12 6

Supply 4 8 9

Requirement 3

Q7. Solve the transportation problem for which the cost, origin, availability and destinations requirements are given below: D1 O1 O2 O3 O4 bj 1 3 4 3 20 D2 2 3 2 1 40 D3 1 2 5 7 30 D4 4 1 9 3 10 D5 5 4 6 4 50 D6 2 3 2 6 25 ai 30 50 75 20 175 (Total)

Q8. A departmental store wishes to purchase the following quantities of ladies dresses: Dress type Quantity A 150 B 100 C 75 D 250

Tenders are submitted by three different manufacturers who undertake to supply not more than the quantities below: Manufacturer Total Quantity W 350 X 250 Y 150

The store estimates that its profit per dress will vary with the manufacturer as shown in the matrix below. How should orders be placed? Dress A B C D Manufacturer 2.75 W X Y 3.00 2.50 3.25 3.50 4.50 4.75 1.75 2.00 3.50 4.25 2.25

Q9. A fertilizer company has three plants A, B and C which supply to six major distribution centres 1,2,3,4,5,6. the table below gives the transportation cost per case, the plant annual capacities and predicted annual demand at different centres in terms of thousands of cases. The variable production cost per case are Rs.8.50, 9.40, 7.20 respectively at plants A,B and C. Determine the minimum cost production and transportation allocation. 1 2 3 4 5 6 Annual production in thousands of cases 220 3400 1800

Plant A B C

2.50 4.60 5.30

3.50 3.60 4.30 750

5.50 2.60 4.80 420

4.50 5.10 2.30 580

1.50 3.10 3.30 1020

4.00 4.10 2.80 920

Annual production 850 in thousands of cases

Prove that if variable production cost are same at every plant , one can obtain an optimal allocation by using transportation costs only. Q10. A production control superintendent finds the following information on his desk: In department A,B,C the number of surplus pallet is 18,27,21 resp. In department G,H,I and J the no. of pallets required is 14,12,23, 17 resp. The time in minutes to move a pallet from one department to another is given below:

To From A B C

G 13 18 23

H 25 23 15

I 12 14 12

J 21 9 16

What is the optimal distribution plan to minimize the moving cost? Q11. Solve the following transportation problem: To From 1 2 3 Demand A 20 15 18 30 B 19 15 20 40 C 14 18 70 D 21 19 20 40 E 16 16 60 Supply 40 60 90

Q12. A manufacturing company has three factories F1, F2, F3 with monthly manufacturing capacities of 7000,4000,10000 units of a product. The product is to be supplied to seven stores. The manufacturing costs of these factories are slightly different but the important factor is the shipping cost from each factory to a particular store. Following table represent the factory capacities, store requirement and unit cost in rupees of shipping from each factory to each store and slack. Here slack is difference between total factory capacity and total store requirement. S1 S2 S3 S4 S5 S6 S7 Slack Factory capacity 7000 4000 10000

Factory F1 F2 F3

5 9 8

6 4 4 2000

4 3 2 4500

3 4 5 4000

7 3 4 2000

5 2 8

4 1 3

0 0 0 1000

Store 1000 requirement

3500 3000

Work out a transportation plan so as to minimize the transportation cost. Q13. General electrode is a big electrode manufacturing company. It has two factories and three main distribution centers in three cities. The supply and demand conditions for units of electrode are given below along with unit cost of production. How should the trips be scheduled so that cost of production is minimized?

The present cost of transportation is around Rs.3100/month. What can be the maximum saving by proper scheduling? Centers Requirement Cost per trip from X plant Cost per trip from Y plant Capacity of plant X Capacity of plant Y A 50 25 20 150 units of electrodes 100 units of electrodes B 50 35 5 C 150 10 80

Q14. A company has three plants at location A,B,C which supply warehouses located at D,E,F,G,H.. Monthly plant capacities are 800,500,900 units resp. Monthly warehouse requirements are 400,350, 250,900. the unit transportation cost in rupees given below: To From A B C D 8 5 8 E 8 8 9 F 9 5 7 G 4 11 3 H 3 6 3

Determine an optimum distribution for the company in order to minimize the total transportation cost. How much is the cost? Q15. Priyanshu enterprise has three auditors. Each auditor can work up to 160 hours during the next month, during which time 3 projects must be completed. Project I will take 130 hours, project II will take 140 hours and III will take 160 hours. The amount in rupee per hour that can be billed for assigning each auditor to each project is given below: Project 1 1200 1400 1600 Project 2 1500 1300 1400 Project 3 1900 1200 1500

Auditor 1 2 3

Find the optimal solution. Also find the maximum total billing during the next month. Q16. Four suppliers have submitted sealed bids that quote the price per case of hairnets delivered to four regional stores of the army. The bids are summarized in the following table. The regional stores requirements as well as supplying capacities of suppliers are also shown. Supplier 4 has quoted for only region 1. Because of previous contractual obligations, region 3 will have to get a minimum of 200 cases from supplier 2.

R1 Supplier S1 S2 S3 S4 Requirement (cases) 30 35 28 25 1000

R2 25 32 30 800

R3 40 38 35 1200

R4 35 40 38 750

Max. Supply (cases) 800 1000 1500 600

a) Formulate this problem as a transportation model including all constraints. b) Find the initial basic solution using V.A.M. c) Use Modi method to establish whether the above solution obtained is optimal or not. Q17. A company has factories at location A, B, C which supply warehouses at D, E, F, G. Monthly factory capacities are 250,300,400 units resp. for regular production. If overtime production is utilized, factories A and B can produce 50 & 75 additional units respectively at overtime incremental cost of Rs.4 and 5 resp. The current warehouse requirements are 200,225, 300 units resp. Unit transportation cost in rupees from factories to warehouse are as follows: To From A B C D 11 16 21 E 13 18 24 F 17 14 13 G 14 10 10

Determine the optimum distribution for this company to minimize cost.

Q18. A company produces a small component for an industrial product and distributes it to five wholesalers at a fixed delivered price of Rs. 250 per unit. Sales forecasts indicate that monthly deliveries will be 300,300,100,500,400 units to wholesalers 1, 2,3,4,5 resp. The direct costs of production of each unit are Rs.100, 90, 80 at plants 1, 2, 3 resp. The transportation cost of shipping a unit from plants to wholesaler are given below: Wholesaler 1 5 8 10 2 7 6 9 3 10 9 8 4 15 12 10 5 15 14 15

Plant 1 2 3

Find how many components each plant must supply to each wholesaler to maximize the profit? What is the maximum total profit? Take the monthly production capacities of plant 1, 2 and 3 as 500,100, 1250units resp.

UNIT-3b: Assignment Model

Q19. Explain the following in the context of assignment problem: a) Balanced assignment problem b) The Hungarian method c) An infeasible assignment Q20. Show that the assignment model is a special case of the transportation model. Q21. Six machines M1, M2, M3, M4, M5, M6 are to be located in six places P1, P2, P3, P4, P5, P6. Cij the cost of locating machine Mi at place Pj is given in the matrix below: P1 20 50 60 6 18 9 P2 23 20 30 7 19 10 P3 18 17 40 10 28 20 P4 10 16 55 20 17 30 P5 16 15 8 25 60 40 P6 20 11 7 9 70 55

M1 M2 M3 M4 M5 M6

Formulate an Lp model to determine an optimal assignment. Write the objective function and the constraints in detail. Define any symbol used. Find an optimal layout by assignment technique of linear programming. Q22. Five new machines are to be located in a machine shop there are five possible locations in which the machine can be located. Cij the cost of placing machine i in place of j is given in the table below: Place 1 20 50 60 6 18 2 23 20 30 7 19 3 18 17 40 10 28 4 10 16 55 20 17 5 16 15 8 25 60

Machine 1 2 3 4 5

It is required to place the machine at suitable places so as to minimize the total cost. a) Formulate an L.P model to find an optimal assignment. b) Solve the problem by assignment technique of L.P

Q23. Solve the following assignment problem for minimum optimal cost:

To 1 city From city A B C D E

12 10 11 6 8

10 18 10 14 12

15 25 3 10 11

22 15 8 13 7

18 16 5 13 13

8 12 9 12 10

Q24. A department has four subordinates and four tasks to be performed. The subordinates differ in efficiency and task differs in their intrinsic difficulty. The estimates of the profit in rupees each man would earn is given in the effectiveness matrix. How should the task be allocated, one to each man, so as to maximize the total earning? Task Subordinate 1 2 3 4 5 6 7 8

5 25 15 15

40 35 25 5

20 30 20 30

5 25 10 15

Q25. Xyz airlines operating 7 days a week has given the following time table. Crew must have a minimum layover of 5 hours between flights. Obtain the pairing of flights that minimize layover time away from home. For any given pairing the crew will be based at the city that results in the smaller layover. Chennai-Mumbai Departure Arrival 6 A.M. 8 A.M. 2 P.M. 8 P.M. 8 A.M. 10A.M. 4 P.M. 10 P.M. Mumbai-Chennai Departure Arrival 8 A.M 9 A.M 2 P.M 7 P.M 10A.M. 11A.M. 4 P.M. 9 P.M.

Flight no. A1 A2 A3 A4

Flight no. B1 B2 B3 B4

Q26. For the matrix shown below find least cost route for the traveling salesman problem: To city 3 7 13 10 7 9

From city

1 2 3 4 5 1

1 9 6 4 5 5

2 12 13 9 13 11

4 6 5 7 6 6

5 5 13 10 6 5

6 5 10 8 9 4

UNIT-4: Game theory Q1. For what type of business problems might game theory be helpful? Q2. Describe the role of theory of games for scientific decision making. Q3. Explain the assumptions underlying game theory. Q4. What do you understand by zero sum and non zero sum games? What do you mean by strategy, dominance and saddle point? Q5. Explain the following: a) minimax and maximin principles b) pure and mixed strategy c) two person zero sum game Q6. State the four properties which a competitive situation should have if it is to be called a competitive game. Q7. How is the concept of dominance used in simplifying the solution of a rectangular game? Q8. Show how a game can be formulated as an L.P.P? Q9. For a two person zero sum game , the payoff matrix for player A is a11 a21 b12 b22

With no saddle point. Obtain the optimal strategies (x1, x2) and (y1, y2). Q10. The following games have saddle point solutions. Determine the saddle point and optimum strategies for each player. a) Y X 4 2 6 10 4 0

b) Y X 2 4 -1 5 3 6

Q11. Determine the optimum strategies and the value of the following games: a) B -3 4 2 9 A 7 8 6 10 6 2 4 -1 b) B A -1 -2 5 7 9 10 3 -2 6 4 0 8 8 6 7 4

c) B A 10 7 3 6 4 6 5 7 2 5 4 3 9 7 4 3 1 8 9 2

Q12. Find the value of the games shown below. Also indicate whether they are fair or strictly determinable. a) B 1 9 6 0 A 2 3 8 -1 -5 -2 10 -3 7 4 -2 -5 b) B A 6 -1 8 9 -2 -2 9 5 -3 -7 -6 -7 8 0 -7 7

Q13. Find the range of values of p and q so that the entry (2,2) is a saddle point in the following games:

a) B A 2 p 7 q 6 3 4 11 4

b) Y X 0 8 2 2 5 p 3 q 4

Q14. Two players A and B match coins. If the coins match, then A wins one unit of value; if the coins dont match, then B wins one unit of value. Determine the optimum strategies for the players and the value of game. Q15. In a game of matching coins with two players, suppose A wins one unit of value when there are two heads,wins nothing when there are two tails and losses unit of value when there are one one head and one tail. Determine the payoff matrix, the best strategies for each player and the value of the game to A. Q16. Solve by using dominance property, the following game: B A I II III I 1 6 6 II 7 2 1 III 2 7 6

Q17. Find the best strategy and the value of the following game: B A I II III I -1 7 6 II -2 5 0 III 8 -1 12

Q18. Find the optimum strategies for Y and the value of game.

Y X 4 2 1 -1 2 -3 4 3 1 -1 -4 0 2 2 -4

Q19. Solve the following game: Player B 32 39 05 44

10 Player A 59 71 34

81 63 20 14

43 69 27 44

93 73 84 69

Q20. Reduce the following game to 22 game by using dominance and modified dominance property and then solve the game. B B2 2 1 3 2 -1 2 2 0

B1 A1 A A2 A3 A4 1 3 -1 -2

B3 2 3 1 -3

B4

Q21. Solve by using dominance property, the following game: B 1 2 3 4 5 I 4 4 4 4 4 II 2 3 3 3 3 III 0 1 7 4 2 IV 2 3 -5 -1 -2 V 1 2 1 2 2 VI 1 2 2 2 2

Q22. Reduce the following game to 22 game by using graphical method: a) B A b) B A c) B A 2 6 -6 -3 3 3 7 10 -2 2 0 1 4 5 -8 8 -5 -4 1 0 3 -1 0 5 6 -2 -1 2 7 1

d) B A -4 -7 -2 -5 -1 3 1 -4 -2 -6

f) B A I II I 2 4 II 2 3 III 3 2 IV -1 6

Q23. Solve by using the method of matrices, the following game: B A 1 3 0 0 0 2 2 0 1

Q24. Solve by using the method of matrices, the following game: B A 1 -1 -1 -1 -1 2 -1 3 -1

Q25. Solve by using the method of matrices, the following rectangular game: B A 3 -2 2 -1 3 -2 1 2 -1 2 3 1

Q26. Solve the following game by linear programming: B A 0 3 4 2 -1 4 2 3 -2

Q27. Solve the following 33 game by linear programming: B A 1 -1 -1 -1 -1 2 -1 3 -1

UNIT-5: Queuing Model Q1. Define the queue and explain the various queue disciplines. Q2.Explain characteristics and classification of queuing model. Q3 Write a note on various assumptions made in single channel queuing theory. Q4. Explain the following: a) b) c) d) Arrival pattern Service discipline Service channel Service distribution

Q5. Explain the following with reference to queuing model: a) M/M/2 b) Service discipline Q6. Discuss the arrival and service process of waiting line model. Write the standard method of expressing the queuing problem. Q7. A repair shop attended by a single mechanic has an average of 4 customers per hour who bring small appliances for repair. The mechanic inspects them for defect and quite often can fix them right away or otherwise renders a diagnosis. This takes him 6 minutes on the average. Arrivals are Poisson and service time has the exponential distribution. You are requested to a) Find the proportion of time during which the shop is empty b) Find the probability of finding at least one customer in the shop c) The average number of customers in the system d) The average time, including service, spent by a customer.

Q8. A duplicating machine maintained for office use is used and operated by people in the office who need to make copies, mostly secretaries. Since the work to be copied varies in length (no. of pages of the original) and copies required, the service rate is randomly distributed but it does approximate a Poisson having a mean service rate of 10 jobs per hour. Generally the requirements for use are random over the entire 8 hour working day but arrive at a rate of 5 per hour. Several people have noted that a waiting line develops occasionally and have questioned the policy of maintaining only one unit. If the time of a secretary is valued at Rs.3.50 per hour, make an analysis to find A) Equipment utilization B) The percent time an arrival has to wait C) The average system time D) The average cost of waiting and operating the machine

Q9. Data have been accumulated at a banking facility regarding the waiting time for delivery trucks to be loaded. The data shows that the average arrival rate for the trucks at loading dock is 2/hour. The average time to load a truck, using 2 loaders is 10 minutes so that the service rate is 3 trucks per hour. The management is considering hiring another loader at Rs.5/hour to reduce the loading time. Drivers are paid Rs.4/hour and truck utilization is valued at Rs.3/hour. Should the additional loader be hired if an increase in the service rate to 4 trucks per hour would result? Q10. The tool room companys quality control department is manned by a single clerk who takes an average of 5 minutes in checking parts of each of machine coming for inspection. The machines arrive once in every 8 minutes on the average. One hour of the machine is valued at Rs.15 and clerk time is valued at Rs.4/hour. What are the average hourly queuing system costs associated with the quality control department? Q11. XYZ wholesale fruit and vegetables distributors employ one worker whose job is to load fruit and vegetables on outgoing company trucks. An average of 24 trucks per day or 3 per hour arrive at the loading gate according to a poisons distribution. The workers load them at a rate of 4 per hour following approximately exponential distribution in his service time. i) Determine the operating characteristics of his loading gate problem. What is the probability that there will be more than 3 trucks either being loaded or waiting? ii) The distributors believe that adding a second fruit and vegetable loader will substantially improve the firms efficiency. The estimate that 2 person crews at the loading gate will double the loading rate. Analyze the effect on the queue of such a change and compare the result to those obtained in part (i). iii) Truck drivers working for XYZ distributors earn Rs.20 per hour on the average. Fruit loader receives about Rs.3 per hour. Truck drivers waiting in the queue or at the loading gate are drawing a salary but productively idle and unable to generate revenue during that time. What would be the hourly cost saving to the firm associated with employing two loader instead of one? Q12. Arrivals at a telephone booth are considered to be Poisson with an average time of 10 minutes between one arrival and the next. The length of a phone call is assumed to be distributed exponentially with mean 3 minutes. a) What is the probability that an arrival will have to wait more than 10 minutes before the phone is free? b) What is the probability that it will take him more than 10 minutes altogether to wait for phone and complete his call? c) Estimate the fraction of a day that the phone will be in use. d) Find the average number of units in the system e) Find the probability that there will be 6 or more units waiting for the call. Q13. A repairman is to be hired to repair machines which break down at an average rate of 3/hour. The breakdowns follow Poisson distribution. Non productive time of a

machine is to be considered to cost Rs.10/hour. Two repairmen have been interviewed one is slow but cheap, while other is fast but expensive. The slow repairman charges Rs.5/hour and he services breakdown machines at the rate of 4/hour. The fast repairman demands Rs.7/hour and he services at an average rate of 6/hour. Which repairman should be hired? Q14. Auto vehicles arrive at petrol pump, having one petrol unit, in Poisson fashion with an average of 10 units per hour. The service time is distributed exponentially with amean of 3 minutes. Find the following: a) average no. of units in the system b) average waiting time for customers c) average length of queue d) probability that a customer arriving at the pump will have to wait e) the utilization factor for the pump unit f) Probability that the no. of customers in the system is 2. Q15. Arrival rate of cars to a service station is according to Poisson distribution with an average time of 50 minutes between the two consecutive arrivals. The length of service needed by a car is assumed to be exponentially distributed with a mean of 25 minutes. a) Determine the probability that a car arriving at the station will have to wait b) Determine the probability that a car arriving at the station will have to wait for more than 10 minutes for the service. c) determine the probability that a car arriving at the station will have to wait for more than 20 minutes for the service d) Find the flow rate of the cars if the average waiting time of the car is 35 minutes. e) What is the utilization fraction of the service station? Q16. A hospital is studying a proposal to reorganize its emergency service facility. The present arrival rate is one call every 15 minutes and service rate is one call every 10 minutes. Current cost of service is Rs.100/hour. Each delay in service cost Rs.125. if the proposal is accepted, the service rate will become one call every six minutes. Can the reorganization be justified on a strictly cost basis only if proposal increases the cost of service by 50%? Q17. A companys quality control department is manned by a single inspector who takes an average of 5 minute in checking parts of each machine coming for inspection. The machine arrives once in every 8 minutes on the average. One hour of machine is valued at Rs.15 and inspectors time is valued at Rs.4/hour. What are the hourly average queuing system costs associated with the quality control department? Q18. Products are expected to arrive at a machining station at the average rate of 3 per hour. One of the following alternatives is to be selected for machining of the products: 1. A single machine of type A 2. Two machines of type B

Machine A, on the average, can machine a product in 15 minutes. The average machining time on machine B is 30 minutes per product. Which of the above alternatives will reduce the average time a product waits before it is taken up for machining? Assume Poisson pattern of arrivals and exponentially distributed service times. Q19. In a factory the machine break down on an average rate of 10 machines/hour. The down cost of the machine is estimated to Rs.20/hour. The factory works 8 hours per day. The factory manager is considering two mechanics for repairing of machines. Mechanic A takes, on an average, 5 minutes in repairing a machine and demands wages @ Rs.10/hour. Mechanic B takes, 4 minutes only but demands wages @Rs.15/hour. Assuming that machine breakdown rate is Poisson distributed and repair times follow exponential distribution, which of two mechanics should be engaged? Q20. XYZ firm has ,on the average, 45 pieces of an equipment requiring repair per week. The probability of an equipment failure is approximately constant so that the arrivals are distributed according to the Poisson law. The repair time is exponentially distributed. The downtime cost of equipment is estimated at Rs.600 per day. There are 5 working days /week and the firm works 50 weeks per annum. The firm has two repair facilities to choose from. The details are: facility F1 F2 Installation charges Operating expense Economic life Scrape value Service rate Rs.7,20,000 Rs.2,40,000 6 years Nil 60/week Rs.12,00,000 Rs.3,00,000 6 years Nil 120/week

Assuming that there is no time value of money, which facility would you suggests the firm to choose? Q21. A road transport company has one reservation clerk on duty at a time. She handles information of bus schedules and makes reservations. Customers arrive at a rate of 8/hour and clerk can handle 12 customers on an average per hour. Answer the following: i) What is the average no. of customers waiting for the service of the clerk? ii) What is the average time a customer has to wait before getting service? iii) The management is contemplating to install a computer system to handle the information and reservations. This is expected to reduce the service time from 5 to 3 minutes. The additional cost of having the new system is Rs.50. the waiting time cost works out to be 12 paise per minute spent waiting before being serviced. Should the company install the computer system? Assume 8hour working day.

Q22. A firm has several machines and wants to install its own service facility for repair of machines. The average breakdown rate of machines is 3/day. The repair time has exponential distribution. The loss incurred due to the lost time of an inoperative machine is Rs.40/day. There are two repair facilities available. Facility X has an installation cost of Rs.20,000 and facility Y cost Rs.40,000. The total labour cost per year for two facilities is Rs.5000 and Rs.8000 respectively. Facility X can repair 4 machines daily while facility Y can repair 5 machines daily. The life span of both the machines is 4 years. Which facility should be installed?

UNIT-6: Replacement Model

Q1. Explain how the theory of replacement is used in replacement of items whose maintenance cost varies with time. Q2. A firm is thinking of replacing a particular machine whose cost price is Rs.12,200. The scrape price of machine is only Rs.200.The maintenance costs are found to be as follows: Year 1 2 3 4 5 6 7 8 Maintenance 220 500 800 1200 1800 2500 3200 4000 cost(Rs.) Determine when the firm should get the machine replaced? Q3. A fleet owner finds from his past records that the cost per year of running a truck whose purchase price is Rs.6000 are as given below: Year Running cost(Rs.) Resale vaue(Rs.) 1 1000 3000 2 1200 1500 3 1400 750 4 1800 375 5 2300 200 6 2800 200 7 3400 200

Determine at what age replacement is due? Q4. A fleet owner finds from his past records that the cost per year of running a vehicle whose purchase price is Rs.50000 are as given below: Year Running cost(Rs.) Resale vaue(Rs.) 1 5000 30000 2 6000 15000 3 7000 7500 4 9000 5750 5 11500 2000 6 16000 2000 7 18000 2000

Thereafter, running cost increases by Rs.2000 per year but the resale value remains constant at Rs.2000. At what age replacement is due? Q5. The data on the operating costs per year and resale price of equipment A whose purchase price is Rs.10,000 are given below: Year Operating cost(Rs.) Resale vaue(Rs.) 1 1500 5000 2 1900 2500 3 2300 1250 4 2900 600 5 3600 400 6 4500 400 7 5500 400

a) What is the optimum period of replacement? b) When equipment A is 2 years old, equipment B which is a new model for the same usage is available. The optimum period for replacement is 4 years with an average cost of Rs.3600. Should we change equipment A with B? If so when? Q6. Machine A costs Rs.3600. annual operating cost are Rs.40 for the first year and then increase by Rs.360 every year. Assuming that the machine has no resale value determine the best replacement age. Another machine B which is similar to machine A cost Rs.4000. annual running costs are Rs.200 for first year and then increase by Rs.200 every year. It has resale value of Rs.1500,1000 and 500 if replaced at the end of first, second and third year respectively. After third year it has no resale value. Which machine would you prefer to purchase? Q7. The data collected in running a machine, the cost of which is Rs.60,000 are given below: Year Resale vaue(Rs.) Cost of spares (Rs.) Cost of labour (Rs.) 1 42000 4000 14000 2 30000 4270 16000 3 20400 4880 18000 4 14400 5700 21000 5 9650 6800 25000

Determine the optimum period for replacement of the machine. Q8. A truck is priced at Rs.60000 and running costs are estimated Rs.6000 for each of the first four years, increasing by Rs.2000 per year in fifth and subsequent years. If money is worth 10%/year, when should truck be replaced? Assume that the truck will eventually be sold for scrape at a negligible price. Q9. A company has option to buy one of the minicomputers: MINICOMP and CHIPCOMP. MINICOMP costs Rs.5 lakhs and running and maintenance costs are Rs.60000 for each of the first five years, increasing by Rs.20000 in sixth and subsequent years. CHIPCOMP has the same capacity as MINICOMP but costs only Rs.250000. however its running and maintenance costs are Rs.12000/year in the first five years and increase by Rs.20000/year thereafter. If the money is 10% per year, which computer should we purchase? What are optimal replacement period for each computer? Assume that there is no salvage value for either computer. Explain your analysis. Q10. The yearly cost of two machines A and B in rupees when money value is neglected is as follows:

Year Machine A Machine B

1 1800 2800

2 1200 200

3 1400 1400

4 1600 1100

5 1000 600

Find the cost pattern if money value is 10% per year and hence find which machine is more economical? Q11. A person is planning to purchase a car. A new car cost Rs.120000. the resale value of car at the end of the year is 85% of the previous year. Maintenance and operation costs during the first year are Rs.20000 and then increase by15% every year. The minimum resale value of the car can be Rs.40000. a) When should the car be replaced to minimize average annual cost? b) If interest of 12% is assumed, when should the car be replaced? Q12. If you wish to have a return of 10% per annum on your investment, which of the following plans would you prefer? Plan A (in rupees) 1st cost Scrap value after 15 years Excess of annual revenue over annual disbursement 200000 150000 25000 250000 180000 30000 Plan B

Q13. Explain how theory of replacement is used in the replacement of items that fail suddenly. Q14. Why is replacement of items required? Distinguish between individual replacement and group replacement policies. Q15. What is the objective of replacement analysis and what are the costs associated with sudden failure of items? Q16. The following mortality rates have been observed for a certain type of light bulbs: Year 1 Percent 10 failing by week end 2 25 3 50 4 80 5 100

There are 1000 bulbs in use and it cost Rs.2 to replace an individual bulb which has burnt out. If all bulbs were replaced simultaneously, it would cost Rs.50 paise per bulb. It is propose to replace all the bulbs at fixed interval, whether or not they have burnt out and to continue replacing burnt out bulbs as they fail. At what intervals should all bulbs be replaced?

Q17. The probability of failure just before age n is shown below. If individual replacement costs Rs.1.25 and group replacement Re.0.50 per item, find the optimal group replacement policy. N Pn 1 0.01 2 0.03 3 0.05 4 0.07 5 0.10 6 0.15 7 0.20 8 0.15 9 0.11 10 0.08 11 0.05

Q18. The following failure rates have been observed for a certain type of light bulb: End of 1 week Probability 0.05 of failure to date 2 0.13 3 0.25 4 0.43 5 0.68 6 0.88 7 0.96 8 1.00

The cost of replacing an individual bulb is Rs.1.25. the decision is made to replace all bulbs simultaneously at fixed interval, and also to replace to replace individual bulb as they fail in service. If the cost of group replacement is 30 paise per bulb , what is the best interval between group replacements? At what group replacement price per bulb would a policy of strictly individual replacement become preferable to the adopted policy? Q19. A computer contains 20000 resistors. When any resistors fails , it is replaced. The cost of replacing a resistor individually is Re.1. if all resistors are replaced at the same time the cost per resistor is reduced to Re.40. the percent surviving at the end of month t and the probability of failure during month t are given below:

End of 0 month Percent 100 surviving at the end of month Probability 0 of failure during the month t

1 96

2 90

3 65

4 35

5 20

6 0

0.04

0.06

0.25

0.30

0.15

0.20

What is the optimum replacement plan?

Q20. The following failure rates have been observed for a certain type of transistors in digital computer: End of week Prob. Of failure 1 0.07 2 0.11 3 0.25 4 0.41 5 0.70 6 0.88 7 0.96 8 1.00

The cost of replacement of transistors individually on failure is Rs. 15 per unit. A decision is made to replace all transistors simultaneously and to replace the individual transistor as they fail in service. If the cost of group replacement is Rs.8/unit, i) What is the best interval between group replacements? ii) Which policy of replacement is economical? iii) If group replacement is economical at current cost, at what cost of individual replacement, group replacement would be uneconomical? iv) How high can the cost per unit in group replacement be to make a preference for individual replacement policy? Q21. An organization is considering periodic replacement of 2000 units of an item which follows sudden failure mechanism. It is now following a policy of replacing its units as they fail at a cost of Rs.800 per item. The organization feels that it can cut its per item replacement cost by Rs.150 by using the periodic replacement method. By making use of the information given in the table below evaluate these alternatives and make a recommendation to the organization: End of month percent of original item that fail during the month 1 10 2 20 3 40 4 70 5 100

Q22. Calculate the probability of staff resignation in each year from the following survival table: year No. of original staff in service at end of the year 0 1000 1 2 940 820 3 580 4 400 5 280 6 190 7 130 8 70 9 30 10 0

Q23. Truck tyres which fail in service can cause expensive accidents. A failure in service is estimated to cost Rs.2000 excluding the cost of replacing the blown tyre. A new tyre cost Rs.800 and has the mortality shown in the table below. If the tyres are to be replaced after covering a certain fixed no. of Km or on failure, whichever occurs first, determine the replacement policy that minimizes the average cost per Km. Truck tyre mortality Age at failure(Km) 10,000 Probability of failure 0.000 10001-13000 0.035 13001-16000 0.083 16001-19000 0.190 19001-22000 0.475 22001-25000 0.217 1.000

UNIT-7: Simulation

Q1. What is simulation? Describe its advantages in solving the problems. Give its main limitations with suitable examples. Q2. What is simulation? Describe the simulation process. What are the reasons for using simulation? Q3. When it becomes difficult to use an optimization technique for solving a problem, one has to resort to simulation. Discuss. Q4. List the applications of Monte Carlo simulation in inventory control and capital budgeting. Q5. The management of a bank is thinking of opening a drive-in-facility for its branch office in a commercial area. The inter-arrival times of customers at the branch are as follows: inter arrival times (minutes) probability 3 0.17 4 0.25 5 0.25 6 0.20 7 0.13 It is planned to have one cashier who can serve the customers at the following rate: service time (minutes) 3 4 5 6 7 probability 0.10 0.30 0.40 0.15 0.05

Determine the no. of spaces to be planned for waiting cars. Simulate the operation of the facility for arriving sample of 25 cars. If the location has space for not more than two waiting cars. How many customers would be turned away due to lack of space? What is the average waiting time of a customer? Q6. The demand for a particular item has the probability distribution shown below: Daily 4 5 6 7 8 9 10 11 12 demand (units) probability 0.06 0.14 0.18 0.17 0.16 0.12 0.08 0.06 0.03

If the lead time is 5 days , using simulation study the implications of inventory policy of ordering 50 units whenever the inventory at the end of day is 40 units. Assume the initial stock level of 75 units and run the simulation for 25 days. Q7. A sample of 100 arrivals of customers at a retail sales depot is according to the following distribution: Time 0.5 between arrivals (minutes) Frequency 2 1 1.5 2 2.5 3 3.5 4 4.5 5

10

25

20

14

10

A study of time required to service customers by adding up the bills, receiving payment, placing packages, etc. yield the following distribution: Service time (minutes) Frequency 0.5 1 1.5 2 2.5 3

12

21

36

19

Estimate the average percentage customer waiting time and average percentage idle time of the server by simulation for the next 10 arrivals. Q8. A bread vendor buys every morning loaves of bread at Re.0.45 each by placing his order one day in advance ( at the time of receiving his previous order) and sells them at Re.0.70 each. Unsold bread can be sold next day at Re.0.20 per loaf and discarded thereafter. The pattern of demand for bread is given below: Daily sales ( fresh bread) Probability of demand Daily sales ( one day old bread) Probability of demand 50 51 52 53 54 55 56 57 58 59 60

0.01 0.03 0.04 0 1 2

0.07 3

0.09

0.11

0.15

0.21

0.18

0.09

0.02

0.70 0.20 0.08

0.02

The vendor adopts the following order rule: if there is no stock with him at the end of the previous day, he orders 60 units. Otherwise he orders 50 or 55 whichever is nearest at the actual fresh bread sale on the previous day. Starting with zero stock and pending order of 55 loaves, simulate for 10 days and calculate the vendor profit.

Q9. The following table gives the arrival pattern at a coffee counter for one minute interval. The service is taken as 2 persons in one minute in one counter. No. of 0 persons arriving Probability 5 percentage 1 2 3 4 5 6 7

10

15

30

20

10

Using monte carlo simulation technique and the following random numbers, generate the pattern of arrivals and the queue formed when following 20 random no. are given: 5,25,16,80,35,48,67,79,90,92,9,14,1,55,20,71,30,42,60 and 85. Find the queue length if two counters are used that is 4 persons in one minute. Q10. A production shop has a group of 20 automatic machines being maintained by a crew of 5 mechanics. It is observed that quite often the machines have to wait for repair for long spell of time, resulting in loss of production. To save the downtime of machines the mgmt is interested in employing additional repairman. The problem is of determining the proper crew size. Fringe benefit of serviceman and cost of machine time lost in waiting in Rs.15/hour. From a thorough scrutiny of previous records of machines break down, it is estimated that for a group of 20 similar machines working under similar condition, the break down and service time follow the frequency distribution shown below: Break down/hr frequency Service time (minute) frequency 7 5 10 8 12 20 9 25 30 10 30 40 11 20 50 12 8

25

40

25

Q11. A company trading motor car spares wishes to determine the level of stock it should carry for the item in its range. Demand is not certain and there is lead time for stock replenishment. For one item, the following information is obtained: Demand (units/day) probability 3 0.1 4 0.2 5 0.3 6 0.3 7 0.1

Carrying cost/unit/day=20 paise, Ordering cost per order=Rs.5, Lead time=3 days

Stock in hand at the beginning of the simulation process is 20 units. You are required to carry out a simulation run over a period of 10 days, if the ordering policy is to order 15 units when the stock in hand falls to 15 units. Calculate the total cost of operating this inventory for 10 days using the following sequence of random no. 00,90,10,10,50,10,80,60,30,50,70,10,20,90. Q12. The output of a production line is subjected to a rigorous quality inspection. The defects are classified into three categories A,B and C. if C grade defect is noticed, the product is scrapped. The other two types of defect can be rectified or passed. The rectification time is 25 minutes for A grade defects and 45 minutes for B grade defects. The probabilities of A,B and C grade defects occurring are 0.10,0.20 and 0.15 respectively. Taking the following random no. simulate the quality inspection test for 10 units of production and give your findings on the following: i) no. of units which passed inspection without any defect. ii) No. of units scrapped iii) No. of units subjected to rework. iv) Total time spent on rework of defective units. Random no. are: Defect 82 A Defect 47 B Defect 48 C 95 36 55 18 57 91 96 04 40 20 79 93 84 55 01 56 10 83 11 13 63 52 57 47 03 09 52

Q13. A manufacturing firm has 25 semi automatic machines in one section. Machines work for eight hours a day and a repair squad of 5 machines attend to their maintenance. The machines are such that only one mechanic can work on a machine at one time. It has been determined from the past break down history that there are ten percent chances that a machine will break down in any given hour. The time required for repairs and their probability distribution is given in following table: Time required to repair each machine(minutes) 15 20 25 30 35 40 Probability(%) 5 10 20 35 22 8

The management of the firm is interested in knowing whether this strength of repair squad is optimum and if not, what is optimum no. the cost of idle machine time to the

company is Rs.10 per hour,while the wages paid to a repairman are Rs.5/hr. company allows 10 minutes per hour as each repairmans personal time. Q14. A printing press receives a different no. of orders each day. The time required for composing and printing varies from order to order. There is sufficient number of printing machines and order usually do not have to wait for printing. The critical time is that of composing. The manager of the press is interesting in knowing the no. of composers he should have so that the sum of the cost of composers idle time and cost of order is minimized. The following data regarding the number of order per day and the composing time are available: No. of order per day 3 5 8 10 12 Frequency (%) 10 20 35 25 10 Composing time per order (hours) 2 3 4 5 6 Frequency (%) 10 25 30 25 10

The press work for 8 hours per day, but a composer can work effectively for only 7 hours a day. An order is accepted only if it can be processed within two days. The wages of the composer are Rs.3/hr, while the cost of order back-ordered comes to Rs.5/hr. Q15. In the child welfare section of the hospital, two specialists attend to the outdoor patients daily from 2-5:00pm. There is general complaint from the public that they have to wait too long. The duty doctors also complain that due to excess of patients they have to sit beyond 5 pm on many of the days. from the data collected from past months, the following distribution of patients arrival and check-up times are determined. No. of patients per day 20 25 30 40 Frequency (%) 40 30 20 10 Check up time per patient (minutes) 8 12 15 20 Frequency (%) 20 40 35 5

What should be the no. of doctors on duty so that their average busy time does not exceed 3 hour/day?

UNIT-8: Advanced topic in linear programming

Q1. What is duality theory? What are the rules to form a dual problem from the primal problem? What are the advantages of duality? Q2. Explain the meaning of duality in L.P. what are the advantages of solving a minimization problem by converting it into a maximization problem? Q3. Discuss the various relations regarding primal and dual problem. Q4. Write the dual of the following L.P problem: Minimize subject to Z= 7x1+3x2+ 8x3, 8x1+2x2+x33, 3x1+6x2+ 4x34, 4x1+ x2 +5x3 1, x1+ 5x2 +2x3 7, x1, x2, x3,0 Z= 2x1+5x2+ 3x3, 2x1+4x2-x38, -2x1-2x2+ 3x3-7, x1+ 3x2 -5x3 -2, 4x1+ x2 +3x3 4, x1, x2, x3,0

Q5. Maximize subject to

Q6. Minimize subject to

Z= 3x1-2x2+ 4x3, 3x1+5x2+4x37, 6x1+x2+ 3x34, 7x1-2x2 -x3 10, x1-2x2 +5x3 3, 4x1+ 7x2 -2x3 2 x1, x2, x3,0 Z= 4x1+5x2+ 12x3, 2x1+x2+x34, 3x1-2x2+ x3=3, x1, x2, x3,0

Q7. Maximize subject to

Q8. Minimize subject to

Z= x3+x4+x5, x1-x3+x4-x5=-2, x2-x3- x4 + x5=1, x1, x2, x3, x4, x50

Q9. Maximize subject to

Z= x1+x2+ 2x3, 2x1-3x2+2x3=4, x1+x2+x36, 4x1- 3x2 -5x3 =1, x1, x2, x3,0

Q10. Minimize subject to

Z= 10x1+15x2+ 30x3, x1+3x2+x390, 2x1+5x2+ 3x3120, x1+ x2 +x3 60, x1, x2, x3,0

Q11. Write a short note on integer programming model. Q12. Define and briefly explain I.P.P, all I.P.P and mixed I.P.SP Q13. Explain some of the practical application of integer programming. Q14. Write short note on zero one programming.