R13

Code No: 712AH

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD
MBA II Semester Examinations, September-2014
QUANTITATIVE ANALYSIS FOR BUSINESS DECISIONS
Time: 3hours
Max.Marks:60
Note: This question paper contains two parts A and B.
Part A is compulsory which carries 20 marks. Answer all questions in Part A. Part B
consists of 5 Units. Answer any one full question from each unit. Each question carries 8
marks and may have a, b, c as sub questions.
PART - A
1.a)
b)
c)
d)
e)

5 4 Marks = 20
Outline the management applications of Operations Research (OR) in any two functional
areas of management.
What are the assumptions in a linear programming problem? Also briefly comment on
the significance of these assumptions.
Give the mathematical formulation of an assignment problem.
Describe any two methods for decision making under uncertainty. Explain each method
with an example.
Explain the basic components of a Queuing model.
PART - B
5 8 Marks = 40

2.
3.
4.

5.

Outline the general principles used in model building within the context of OR. Briefly
explain the Scientific method in OR.
OR
Define a model. Explain how models used in OR can be classified according to various
characteristics.
Solve the following Linear Programming problem:
Maximize Z = 8x1 - 4x2
Subject to, 4x1 + 5x2 20
-x1 + 3x2 -23
x1 0; x2 unrestricted.
OR
Solve the following transportation problem for optimal solution:
P
Q
R
S
T
Supply
A
5
8
6
6
3
8
B
4
7
7
6
5
5
C
8
4
6
6
4
9
Demand
4
4
5
4
8

6.

7.

8.

9.

Solve the following travelling - salesman problem in the matrix shown below:
To
A
B
C
D
E
A

6
12
6
4
From B
6

10
5
4
C
8
7

11 3
D
5
4
11

5
E
5
2
7
8

OR
Solve the following assignment problem of minimizing total time for doing all the
jobs (P, Q, R, S, T):
Operator/Job P
Q
R
S
T
A
6
2
5
2
6
B
2
5
8
7
7
C
7
8
6
9
8
D
6
2
3
4
5
E
9
3
8
9
7
F
4
7
4
6
8
Under an employment promotion programme, it is proposed to allow sales of newspapers
on the buses during off-peak hours. The vendor can purchase the news paper at a special
discounted rate of Rs.2.50 per copy against the selling price of Rs.4.00.Any unsold copies
are, however a dead loss. A vendor has estimated the following probability distribution
for the number of copies demanded.
Number of copies
15
16
17
18
19
20
demanded
0.04
0.19
0.33
0.26
0.11
0.07
Probability
How many copies should he order so that his expected profit will be maximum?
OR
A manufacturer is faced with a problem of fast change of technology and hence fast
change in the product line. At this point of time, the research and development wing of
the organization has suggested an improved new product with easy acceptance. It will
cost the manufacturer Rs.60, 000 for the pilot testing and development testing before
establishing the product in the market. The organization has 100 customers and each
customer might purchase, at the most, one unit of the product, due to its cost and
newness. The selling price suggested is Rs.6,000 for each unit and selling estimate is
Rs.2,000 for each unit.
The probability distribution for proportion of customers buying the product is estimated
as follows:
Proportion of
customers
Probability
0.04
0.1
0.08
0.1
0.12
0.2
0.16
0.4
0.2
0.2
Work out the expected opportunity losses and suggest whether the manufacturer should
develop the product or not.

10.

11.

An airlines organization has one reservation clerk on duty in its local branch at any given
time. The clerk handles information regarding passenger reservation and flight
timings. Assume that the number of customers arriving during any given period is
Poisson distributed with an arrival rate of eight per hour and that the reservation clerk can
serve a customer in six minutes on an average, with an exponentially distributed service
time.
a) What is the probability that the system is busy?
b) What is the average time a customer spends in the system?
c) What is the average length of queue?
d) What is the number of customers in the system?
OR
XYZ company distributes its products by trucks loaded at its only loading station. Both
the companys trucks and the contractors trucks are used for this purpose. It was found
out that on an average every five minutes, one truck arrived and the average loading time
was three minutes.50% of the trucks belong to the contractor.
Find out:
a) The probability that a truck has to wait.
b) The waiting time of the truck that waits, and
c) The expected waiting time of contractors trucks per day, assuming a 24-hour shift.

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