Beruflich Dokumente
Kultur Dokumente
:10BT60301
Max. Marks: 70
Answer any FIVE questions
All questions carry equal marks
1.
2.
3.
W1
40
38
36
320
Destination
W3 W4 W5
26
38
30
34
34 198
24
28
30
400 240 480
W2
36
28
38
320
4.
Supply
320
560
480
Probability of failure
0
0.06
0.30
0.48
0.16
1
2,90,000
11,500
3,000
1
2
3
4
2,10,000 1,50,000 1,10,000
12,800
13,600
14,000
5,000
8,000
12,000
5
40,000
15,000
15,000
5.
A
8
B
10
C
8
D
10
E
16
F
17
G
18
H
14
I
9
a) Derive the expression for EOQ and state the assumptions made.
b) The annual demand for a product is 64,000 units. The buying cost per order is Rs.10 and the
estimated cost of carrying one unit in stock for a year is 20%. The normal price of the product is
Rs.10 per unit. However, the supplier offers a quantity discount of 2% on an order of at least
1000 units at a time and a discount of 5%, if the order is for at least 5000 units. Suggest the
most economic purchase quantity per order.
7.
a) Indicate the difference between decision making under risk and uncertainity in
Statistical Decision Theory.
b) A manufacturing company has to select one of the two products A and B for manufacturing.
product A requires an investment of Rs. 20,000 and product B Rs. 40,000. Market research
survey, which shows high, medium and low demands with corresponding probabilities and sales
earnings in thousands of rupees for the two products, is given in table. Construct an appropriate
decision tree. What decision should the company take?
Market
High
Medium
Low
8.
Probability
A
B
0.4
0.3
0.3
0.5
0.3
0.2
Sales
A
50
30
10
B
80
60
5
a) Define: i) Pure Strategy ii) Mixed Strategy and iii) Saddle Point.
b) Obtain the optimal strategies for both persons and the value of the game whose pay-off matrix is
as follows:
Player B
Player A
B1
B2
B3
B4
B5
B6
A1
4
2
0
2
1
1
A2
4
3
1
3
2
2
A3
4
3
7
-5
1
2
A4
4
3
4
-1
2
2
A5
4
3
3
-2
2
2