OPERATION

RESEARCH
TUTORIALS

GOVT. ENGG. COLLEGE, VALSAD.

 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT

CERTIFICATE

This is to certify that Mr./Miss_____________________________________________________ of

Mechanical Branch, Sem-VII, Enrollment No.__________________________, has

satisfactorily completed his/her term work for the subject Operation Research

(2171901) during odd term-2019.

Date :

Sign of Faculty Head of the Department

 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT

INDEX

Subject: Operation Research (2171901)

PRACTICAL SIGN OF
TITLE GRADE DATE
NO. FACULTY
Exercise on definition, formulation of linear
1
programming problems.
Exercise on Graphical solution of linear
2
programming problems

3 Exercise and case problems on Simplex, Big M.

Exercise and case problems on Two-Phase

4
Method, Duality.
Exercise and case problems on Sensitivity
5
Analysis
Exercise and case problems on Transportation
6
and Transshipments Problems.
Exercise and case problems on Assignment and
7
Travelling sales man Problems

8 Exercise and case problems on Queuing theory

9 Exercise and case problems on Game theory

10 Exercise on Inventory model

11 Exercise on Replacement theory

12 Exercise and case problems on PERT/CPM

 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 01– EXERCISE ON DEFINITION, FORMULATION OF LINEAR
PROGRAMMING PROBLEMS
2171901- OPERATION RESEARCH
B.E. SEM –7th

Problem:- 1 An advertising company wishes to plan an advertising campaign in three

different media: television, radio and a magazine. The purpose of the
advertising is to reach as many potential customers as possible. Following are
the result of a market study:
Television
Prime Day Prime Radio Magazine
( Rs.) Time (Rs.) (Rs.)
(Rs.)
Cost of an advertising 40,000 75,000 30,000 15,000
unit
Number of potential 4,00,000 9,00,000 5,00,000 2,00,000
Customers Reached /unit
Number of Women 3,00,000 4,00,000 2,00,000 1,00,000
customers Reached /unit

The company does not want to spend more than Rs.8,00,000 on advertising. It is
further required that
(i) at least 20,00,000 exposures take place among women
(ii) advertising on television be limited to Rs. 5,00,000
(iii) at least 3 advertising units be bought on prime day and two units during
prime time; and
(iv) the number of advertising units on radio and magazine should each be
between 5 and 10.
Formulate this problem as an L.P. model to maximize potential customer reach.
Problem:- 2 A small fabrication industry is faced with a problem of scheduling production
and subcontracting for three products A, B and C. Each product requires
casting, machining and assembly operations. Casting operation for product A
and B can be subcontracted but product C requires special tooling hence it
cannot be subcontracted. Each unit of product A, B and C requires 6, 10 and 8
minutes of casting time in the foundry shop of a company. Machining times per
unit of products A, B and C are 6, 3 and 8 minutes while assembly times are 3, 2
and 2 minutes respectively. The time available per week in foundry, machining
and assembly shop are 8000, 12000 and 10000 minutes respectively. If product
A, B and C are produced completely in the company, the overall profits per unit
of product are Rs. 700, Rs. 1000 and Rs. 1100 respectively. When castings are
obtained from subcontractors, the profit per unit of product A and B are Rs. 500
and 900 respectively. Formulate above problem as LPP so as to maximize the
profit for company by scheduling its production and subcontracting.

Problem:- 3 A firm manufactures two product A and B on which the profit earned per unit
are Rs. 3 and Rs. 4 respectively. Each Product is processed on two machines M1
and M2. Product A requires one minute of processing time on M1 and two
minutes on M2, while product B requires one minute of processing time on M1
and one minute on M2. Machine M1 is available for not more than 7 hrs and 30
minutes, while machine M2 is available for 10 hrs during working day.
Formulate the problem as LPP.

Problem:- 4 A coffee company mixes Brazilian, Columbian and African coffee to make two
brands of coffee plains A and B. The characteristics used in blending the coffee
include strength, acidity and coffine. The test result of the available supply of
Brazilian, Columbian and African coffee.
Price/kg Strength Acidity % coffine Supply available
Brazilian 60 6 4 2 50000
Columbian 70 8 3 2.5 30000
African 65 5 3.5 1.5 25000

The requirement for A and B coffee are given as below.

Plain Price/kg Min Max Max % Quantity
 coffee strength acididty coffine Demanded
A 75 6.5 3.8 2.2 65000
B 85 6.0 3.5 2 55000

Assume that 35000 kg of plains A and 25000 kg of plain B are to be sold

formulate LPP.

Problem:- 5 A firm buys casting of P and Q type of parts and sells them as finished product
after machining, boring and polishing. The purchasing cost for castings is Rs.
3and Rs. 4 for ports P and Q. The selling price is Rs. 8 and Rs. 10 respectively.
The per hour capacity of machine used for machining, boring and polishing for
two products is given below. The running cost for machining, boring and
polishing are Rs. 30, Rs. 22.5 and Rs. 22.5 per hour respectively. Formulate the
LPP to find the product mix to maximize the profit.
Capacity Parts ( per hour
Per Hour capacity)
P Q
Machining 30 50
Boring 30 45
Polishing 45 30

Problem:- 6 A firm manufactures 3 products A, B and C. The profits are Rs. 3, Rs. 2 and Rs.
4 respectively. The firm has 2 machines and below is the required processing
time in minutes for each machine on each product. Machine G and H have 2000
and 2500 minutes respectively. The firm must manufacture 100 A’s, 100 B’s
and 50 C’s but no more than 150 A’s. Formulate LPP.
Machine Product
A B C
G 4 3 5
H 2 2 4
Problem:- 7 Two ware houses have tomato tins on hand and three stores require more in
stock.

Ware Tins on Stores Tins

Houses Hand required
W1 100 A 75
W2 200 B 125
C 100
The cost of shipping between ware houses and stores for tin is given in
following table.
From/To A B C
W1 10 14 30
W2 12 20 17

Set up LP model where objective function is to minimize shipping cost.

Problem:- 8 An evening shift resident doctors in the surat general hospital work five
consecutive days and two consecutive days off. Their five days of work can
start on any days of the week and the schedule rotates indefinitely. The hospital
requires following minimum number of working doctors.
Sunday Monday Tuesday Wednes Thurs Friday Satur
day day day
35 55 60 50 60 50 45
No more than 40 doctors can start their five working days on the same day.
Formulate LPP to minimize the number of doctors employed in the hospital.
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 02– Exercise on Graphical solution of linear
programming problems
2171901- OPERATION RESEARCH
B.E. SEM –7th
Problem:- 1 Use Graphical method to solve the following L. P. problem.
Maximize, Z  2 x  x
1 2
Subjected to,
x  2 x  10
1 2
x x 6
1 2
x x 2
1 2
x  2x  1
1 2
x ,x 0
1 2
Problem:- 2 A company has two grades of inspectors grade-I and grade –II who are to be
assigned for quality control inspection. It is required that atleast 1800 pieces be
inspected per 8 hour day. Grade-I inspector can check pieces at the rate of 25
per hour with accuracy of 98%. Grade-II inspector can check at the rate of 15
pieces per hour with 95% accuracy. Wage rate for grade-I inspector is Rs. 4 per
hour and that of grade-II is Rs. 3 per hour. Each time on error is made by an
inspector, the cost to the company is Rs.2. The company has 8 of grade-I and 10
of grade-II for the inspection of job. The company wants to determine optimal
assignment of inspector which will minimize total cost of inspection. Use the
graphical method to solve the problem.

Problem:- 3 A company makes two kind of leather belts A and B. Belt A is high quality belt
and B is of lower quality. The profit per belt is Rs. 4 for belt A and Rs. 3 for belt
B. Each belt of type A requires twice as much as belt of type B to be
manufactured. If all belts were of type B, the company makes 1000 per day. The
supply of leather is sufficient only 800 per day for both A and B belt. Belt A
requires a fancy buckle and 400 per day are available and there are 700 buckle
are available for B type. How many belts of type A and B the company should
manufacture in order to maximize the profit. Use graphical method.
Problem:- 4 Parley bottling company has 2 bottling plants one located at surat and other at
sachin. Each plant produces three drinks thumps up, limca and frooty, named A,
B and C respectively. Numbers of bottles produces per day are as follows:-
Surat Sachin
A 1500 1500
B 3000 1000
C 2000 5000
Market survey indicates that during the month of April, there will be a demand
of atleast 20000 bottles of thumps up, 40000 of limca and 44000 of frooty. The
operating cost per day for plants at surat and sachin are Rs. 6000 and 4000. For
how many days each plant should be run in April so as to minimize production
cost while still meeting market demand. Use graphical method.
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 03– Exercise and case problems on Simplex, Big M.
2171901- OPERATION RESEARCH
B.E. SEM –7th
Problem:- 1 Solve the following L.P. P using the simplex method. (May-12)
Maximize, Z  6 x  4 x
1 2
Subjected to,
2 x  3x  30
1 2
3x  2 x  24
1 2
x x 3
1 2
x ,x 0
1 2
Problem:- 2 Solve the following L.P. P using the simplex method. (Nov.-13)
Minimize, Z  3x  x  2 x
1 2 3
Subjected to,
x  3x  x  5
1 2 3
2x  x  x  2
1 2 3
4 x  3x  2 x  5
1 2 3
x ,x ,x 0
1 2 3

Problem:- 3 A company has two grades of inspectors grade-I and grade –II who are to be
assigned for quality control inspection. It is required that atleast 1800 pieces be
inspected per 8 hour day. Grade-I inspector can check pieces at the rate of 25
per hour with accuracy of 98%. Grade-II inspector can check at the rate of 15
pieces per hour with 95% accuracy. Wage rate for grade-I inspector is Rs. 4 per
hour and that of grade-II is Rs. 3 per hour. Each time on error is made by an
inspector, the cost to the company is Rs.2. The company has 8 of grade-I and 10
of grade-II for the inspection of job. The company wants to determine optimal
assignment of inspector which will minimize total cost of inspection.
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 04– Exercise and case problems on Two-Phase Method,
Duality.
2171901- OPERATION RESEARCH
B.E. SEM –7th
Problem:- 1 Use two-phase method to solve the following problem:
Maximize, Z  3x  2 x  x  x
1 2 3 4
Subjected to,
4 x  5x  x  3x  5
1 2 3 4
2 x  3x  4 x  5 x  7
1 2 3 4
x  4 x  25 x  4 x  6
1 2 3 4
x ,x ,x ,x 0
1 2 3 4

Problem:- 2 Use two-phase method to solve the following problem:

Minimize, Z  x  x  x
1 2 3
Subjected to,
x  3x  4 x  5
1 2 3
x  2x  3
1 2
2x  x  3
2 2
x , x  0, x is unresricted .
1 2 3
Problem:- 3 Construct the dual to the following linear programming problem. Solve the
primal problem and dual problem. (May -12)
Minimize, Z  5 x  6 x  4 x
1 2 3
Subjected to,
3x  4 x  6 x  9
1 2 3
x  3x  2 x  5
1 2 3
7 x  2 x  x  10
1 2 3
x  2x  4x  4
1 2 3
2 x  5 x  3x  3
1 2 3
x ,x ,x 0
1 2 3
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 05– EXERCISE AND CASE PROBLEMS ON SENSITIVITY
ANALYSIS
2171901- OPERATION RESEARCH
B.E. SEM –7th
Problem:- 1 Solve the following L. P. problem,

Find the optimal solution for the following changes in various parameters.
(1) Change C1 (Coefficient of in objective function) to 1 1x
(2) Change R H S to [3,-2, 4]
(3) Change R H S of second constraint to 11
(4) Change Coefficient of all variable in objective function to [1, 2, 3, 4].
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 06– EXERCISE AND CASE PROBLEMS ON TRANSPORTATION
AND TRANSSHIPMENT PROBLEMS
2171901- OPERATION RESEARCH
B.E. SEM –7th

1. Find the optimal solution of the following Transportation problem using MODI method.
Use VAM to find IBFS.

M1 M2 M3 M4 Suppl
y
F1 3 2 4 1 20
F2 2 4 5 3 15
F3 3 5 2 6 25
F4 4 3 1 4 40
Demand 30 20 25 25
2. Consider the transportation problem shown in table below. Find the initial basic feasible solution
using North-west Corner method. Use stepping stone method to obtain optimal solution

1 2 3 4 5 Supply
1 20 4 32 28 20 3000
PLANT 2 12 36 24 26 32 5000
3 16 8 28 24 20 8250
4 28 44 40 16 36 3750
Demand 3500 4000 2500 1500 4000

2. A transportation company has 5, 10, 7 and 3 trucks available at four different sites A,
B, C and D. Its customers have requirement of 5, 8 and 10 trucks at the three different
destinations X, Y and Z respectively. The distance from an origin to destination is
summarized in the following table. Formulate above problem as transportation
problem and determine strategy for a company using VAM. Test the optimality of
VAM solution and determine optimum strategy for the transport company.

X Y Z
A 70 30 60
B 40 60 80
C 50 80 40
D 80 40 30

4. A company has factories at A, B and C which supply warehouses at P, Q, R and S. Weekly

factory capacities are 250, 300 and 400 units respectively for normal shift. Factory A and
B are capable of overtime production of 50 and 75 units per week with an incremental
cost of Rs.4 and Rs.5 respectively. The current warehouse requirements are 200, 275,
275, and 300 units. The positions of the point A B C,PQRS are as shown below Roads
PQ, QS, SR and RP from a square of 10 kms side, where as AB, BC and CA form an
equilateral triangle. A lies midway between P and Q. transportation coast is estimated at
Rs.2.5 per kms. Determine the optimum distribution for a minimum cost.

P A Q

B C
R S

5. A TV manufacturing company has three plants A, B and C, which manufacture two

main products a 14’’ B/W TV and 19’’ B/W TV having demand of 450 and 1050
units. A company is planning to manufacture 21’’ B/W TV having demand of 600
units. The selling price of TV is 15250, 19150 and 21950 respectively. The variable
cost at three plants for each production is given below:

B/W
PAINTS TV
SUPPLY
14’’ 19’’ 21’’
A 8000 8500 9250 800
B 7950 8600 9200 600
C 8100 8450 9300 700

Do allocation for products and plants such that company can have maximum profit.
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 07– EXERCISE AND CASE PROBLEMS ON ASSIGMENTS
2171901- OPERATION RESEARCH
B.E. SEM –7th

1. Five jobs 1,2,3,4 and 5 are to be assigned to machine A, B, C, D and E. The costs of
assigning these jobs to the machines in Rupees are given in the following matrix.
Calculate the total cost of optimal assignment.

JOBS MACHINES
A B C D E
1 6 7 5 9 4
2 7 5 10 9 6
3 5 4 3 6 5
4 8 3 5 6 4
5 4 7 5 6 6
2. Find out the minimize the cost by assignment model.

STATIONS WAGONS
1 2 3 4 5
A 10 5 9 18 11
B 13 9 6 12 14
C 3 2 4 4 5
D 18 9 12 17 15
E 11 6 14 19 10

3. A captain of cricket team has to allot five order batting positions to five batsmen. The
average runs scored by each batsman at this position are given in the table. Make the
assignment so that expected total average runs scored by this batsman are maximum.

BATSMAN BATTING POSITION

1 2 3 4 5
1 40 40 35 25 50
2 42 60 16 25 27
3 50 48 40 60 50
4 20 19 20 18 25
5 58 60 59 55 53
4. Four salesmen are to be assigned to four districts. Estimates of the sales revenue in
hundreds of rupees for each sale are as under. Give the assignment pattern that
maximizes the sales revenue.

SALESMAN DISTRICTS
A B C D
P 320 350 400 280
Q 400 250 300 220
R 420 270 340 300
S 250 390 410 350

5. A company has four machines to do three jobs. Each job can be assigned to one and
only one machine. The cost of each job on each machine is given in the following
table.

JOBS MACHINE
1 2 3 4
A 18 24 28 32
B 8 13 17 19
C 10 15 19 22

What are job assignments which will minimize the cost?

6. A salesman wants to visit cities 1, 2, 3 and 4. He does not want to visit any city
twice before completing the tour of all the cities and wishes to return to his home
city, the starting station. Cost of going from one city to another in rupees is given in
table. Find the least cost route.

FROM TO CITY
CITY A B C D
1 - 30 80 50
2 40 - 140 30
3 40 50 - 20
4 70 80 130 -
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 08– EXERCISE AND CASE PROBLEMS ON QUEUING THEORY
2171901- OPERATION RESEARCH
B.E. SEM –7th
1. Customers arrive at a sales counter manned by a single person according to a Poisson
process with a mean rate of 20 per hour. The time required to serve a customer has an
exponential distribution with a mean of 100 seconds. Find the average waiting time of
a customer in queue and system.

2. The tool room Company is staffed by one clerk who can serve 12 production
employees, on the average, each hour. The production employees arrive at the tool
room every six minutes, on the average. Find the measures of performance.
 Average waiting time in the system (tool room)
 The average waiting time in the line
 The average number of employees in the system (tool room area)
 The average number of employees in the line.
 The probability that the tool room clerk will be idle.
 The probability of finding the system busy
 The probability of finding four employees in the system

3. The mean rate of arrival of planes at an airport during the peak period is 20 per hour.
And the actual number of arrivals in any hour follows a poisson distribution. The
airport can land 60 planes per hour on an average in good weather and 30 planes per
hour in bad weather, but the actual number landed in any hour follows a poisson
distribution with these respective averages. When there is congestion, the planes that
arrived earlier,
(i) How many planes would be flying over the field in the stack on an
average in good weather and in bad weather?
(ii) How long a plane would be in the stack and in the process of landing in
good and in bad weather?
(iii) How long a plane would be in the process of landing in good and bad
weather after stack waiting?

4. Trucks enter an inspection station at the rate of one every four minutes. Inspectors can
inspect about 18 trucks per hour. Assume Poisson arrivals and exponential service
times. Determine
 How many trucks would be in the system?
 How long it would take for a truck to get through the inspection station?
 The utilization of the person staffing the station.

14
  The probability that there are more than three trucks in the system.

5. Customers arrive at a watch repair shop according to a Poisson process at a rate of one
per every 10 minutes, and the service time is an exponential r.v. with mean 8
minutes.
 Find the average number of customers L, the average time a customer spends in
the shop W, and the average time a customer spends in waiting for service Wq.
 Suppose that the arrival rate of the customers increases 10 percent. Find the
corresponding changes in L, W, and Wq.

6. People arrive at a telephone booth according to a Poisson process at an average rate of

12 per hour, and the average time for each call is an exponential r.v. with mean 2
minutes.
 What is the probability that an arriving customer will find the telephone booth
occupied?
 It is the policy of the telephone company to install additional booths if customers
wait an average of 3 or more minutes for the phone. Find the average arrival rate
needed to justify a second booth.

15
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 09– EXERCISE AND CASE PROBLEMS ON GAME THEORY
2171901- OPERATION RESEARCH
B.E. SEM –7th
1. Solve the following game by using Dominance method

PLAYER B
A1 B1 B2 B3
PLAYER
A2 4 5 8
A
A3 6 4 6
A4 4 2 4

2. Reduce following matrix by rule of dominance.

PLAYER B
B1 B2 B3 B4
PLAYER A1 6 4 8 0
A A2 6 8 4 8
A3 8 4 8 0
A4 0 8 0 16

3. Two companies are thinking on selecting the advertising media. There are three
Medias available along with the pay of as shown in the pay of matrix

PLAYER B
TV RADIO INTERNATE
PLAYER
TV 150 200 -400
A
RADIO 0 75 -100
INTERNATE 450 100 250
Value is in gain sales in (1000 rupees) suggest optimal strategy for the marketing
and find out the value of the game.

4. A company management and the labour union are negotiating a new three year
settlement. Each of these has 4 strategies:
I: Hard and aggressive bargaining II: Reasoning and logical approach
III: Legalistic strategy IV: Conciliatory approach

The cost to the company is given in the following table for every pair of strategy
choice. What strategy will the two sides adopt? Also determine the value of the
game.

16
 Union strategies Company strategies
1 1 2 3 4
2 20 15 12 35
3 25 14 8 10
4 40 2 10 5
5 -5 4 11 0

5. Determine the solution of game for the pay-off matrix given below

PLAYER B
PLAYER I II III
A I -3 -1 7
II 4 1 -2

17
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 10– EXERCISE ON INVENTORY MODEL
2171901- OPERATION RESEARCH
B.E. SEM –7th
1. Give the different type of inventory.

2. What do you mean by inventory control? Give the different objective of inventory
control.

3. Give the definition of given.

(i) Demand
(ii) Ordering cycle
(iii) Lead time or delivery tag
(iv) Reorder level.
(v) EOQ, EBQ

4. What do you mean by (i) ABC analysis (ii) VED analysis (iii) FNS analysis

5. The production department for a company requires 7,200 kg of raw material for
manufacturing a particular item per year. It has been estimated that the cost of placing
an order is Rs. 72 and the cost of carrying inventory is 25 percent of the investment in
the inventories. The price is Rs. 20 per kg. The purchase manager wishes to determine
an ordering policy for raw material.

6. The Deena paints ltd. would like t improve its inventory management policies for its
supply of paint used for automobiles. Annual demand for such paint is 50,000 liters,
and the paint, which costs Rs.20 per liter, is used at a paint held. Each order cost Rs.
80.Determine:
(i) How much paint should be ordered each time?
(ii) How often should paint be ordered?
(iii) Time between two consecutive orders.
(iv) What is the total annual cost associated with this policy?

7. The detail of a part to be machined are as follows:

Annual requirement = 2400 pieces, machine rate= 10 pieces/shift
No. of working days in year = 320 shifts
Cost of machining a component = Rs. 100 per piece.
Inventory carrying cost per annum = 12 % of value
Set up cost per production run = Rs. 400
Find the optimum run size for machining.

18
8. A purchase manager has decided to place order for a minimum quantity of 500
numbers of a particular an item in order to get a discount of 10%. From the past
record it was found out that in the last year 8 orders each of size 200 units were
placed. Given the ordering cost= Rs. 500 per/order, inventory carrying cost of 40 % of
the inventory value and the price of the item of rest 400 per/unit. Is the purchase
manager justified in his decision? What is the effect of his decision to the company?

9. XYZ Company buys in loss of 2000 units which is only 3 months’ supply. The cost
per unit is Rs. 125 and order is Rs. 125 and order cost is Rs. 250. The inventory
carrying cost I s20% of unit value. How much money can be saved using economic
order quantity?

19
 GOVERNMENT ENGINEERING COLLEGE, VALSAD
MECHANICAL ENGINEERING DEPARTMENT
Tutorial – 11– EXERCISE ON REPLACEMENT THEORY
2171901- OPERATION RESEARCH
B.E. SEM –7th
1. The maintenance cost and resale value per year of a machine whose purchase price is Rs.7000
is given below.

Year 1 2 3 4 5 6 7 8
Maintenance Cost in Rs. 900 1200 1600 2100 2800 3700 4700 5900
Resale Value in Rs. 4000 2000 1200 600 500 400 400 400
When should the machine be replaced?
2. The purchase price of a machine is Rs.52000. The installation charges amount to Rs.14400
and its scrap value is only Rs.6400. The maintenance cost in various years is given below:
Year 1 2 3 4 5 6 7 8
Maintenance Cost in Rs. 1000 3000 4000 6000 8400 11600 16000 19200
After how many years should the machine be replaced? Assume that the machine
replacement can be done only at the year ends.
3. The following table gives the running costs per ear and resale values of a certain equipment
whose purchase price is Rs.65000. At what year is the replacement due optimally:
Year 1 2 3 4 5 6 7 8
Running Cost in Rs. 14000 15000 17000 2000 24000 28000 33000 39000
Resale Value in Rs. 40000 30000 22000 17000 13000 10000 10000 10000

4. The initial cost of a machine is Rs.30000 and running or operating expenditure which
increase with age of the machine is given below:

Year 1 2 3 4 5 6 7
Maintenance Cost in Rs. 5000 6000 8000 10000 13000 16000 20000
What is the replacement policy? When this machine should be replaced? It is given that the
rate of interest is 10% and scrap value is nil?

5. The manager of Taj hotel is considering the periodic replacement of light bulbs fitted in its
rooms. There are 500 rooms in the hotel and each room has 6 bulbs. The management is now
following the policy of replacing the bulbs as they fail at a total cost of Rs.30 per bulb. The
management feels that this cost can be reduced to Rs.10 by adopting the periodic
replacement method. On the basis of the information given below, evaluate the alternative
and make a recommendation to the management.

Months of use 1 2 3 4 5
% of bulbs failing by
10 25 50 80 100
that month

20
 GOVERNMENT ENGINEERING COLLEGE, VALSAD

MECHANICAL ENGINEERING DEPARTMENT

Tutorial – 12– EXERCISE ON PERT AND CPM
2171901- OPERATION RESEARCH
B.E. SEM –7th
1) The time estimates and precedence relationships of different activities constituting a
small construction project are given in following table.
i. Draw the project network.
ii. Determine project completion time.
iii. What is critical path?

2) A small project is composed of 7 activities whose time estimates are listed in the table
below. Activities are identified by their beginning and ending node numbers.
i. Draw the project network.
ii. Find the expected duration and variance for each activity.
iii. What is the expected project length and standard deviation?
iv. What is the probability that the project will be completed 3 weeks later
than the expected time?

3) Explain the term crashing of network. Why it is required?

4) Consider the following given data and based on that find out critical path for the given
project.

5) Listed in the table are the activities and sequencing necessary for a maintenance job
on the heat exchangers in a refinery. Draw a network diagram for the project.

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6) The details of activity in project management are given below.
Find (i) Critical path & Project duration (ii) Optimum project cost with considering
indirect cost is 100 Rs. per day.

7) The details of activity and duration are shown below. Find (i) Draw a network (ii)
Find the critical path (iii) Project duration

8) The activities A to H of a new project having relationships and timings shown in table
below.
i. Draw the network
ii. Find the critical path and expected time of completion of the project.
iii. What will be the standard deviation of the project completion duration?
iv. What will be the probability of completing the project in expected time of
completion?

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9) Following table shows jobs, normal and crash time, normal and crash cost of a
project. Indirect cost for the project is 300 Rs./day.
i. Draw the network and find the critical path.
ii. What is normal duration and cost of project.
iii. Find optimal cost and duration.

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