PEPERIKSAAN JAN 2018

PART A

QUESTION 1

a) TRUE
b) FALSE
c) FALSE
d) TRUE
e) TRUE

QUESTION 2
a) Maximax cretirion

Alternatives Favorable Stable Unfavourable Maximum in row

Apartment 59 70 43 70

Bungalow 66 53 40 66

Terrace House 75 64 50 75*

Answer: MDEV should choose the Terrace House project with financial returns of RM75
million.

b) Minimax regret
Oppurtunity Loss Table

Alternatives Favorable Stable Unfavourable Maximum in row

Apartment 16 0 7 16

Bungalow 9 17 10 17

Terrace House 0 6 0 6*

Answer: MDEV should choose the Terrace House project with financial returns of RM6
million.
 QUESTION 3
a) Graphical solution

Constraint Testing point

X1 = 0, X2 = 1.6 (0 , 1.6)
40X1 + 30X2 ≥ 48
X2 = 0, X1 = 1.2 (1.2 , 0)
X1 = 0, X2 = 0.8 (0 , 0.8)
20X1 + 35X2 ≥ 28
X2 = 0, X1 = 1.4 (1.4 , 0)
X1 ≥ 5

1.6

0.8

1.2 1.4 5

b) The solution is unbounded

QUESTION 4
Oppurtunity cost table:
Car
Job
A B C D
Johan 17 19 13 4
Zaki 15 17 8 2
Azhar 16 18 9 5
Fazil 18 17 12 0
Row subtraction:

Car
Job
A B C D
Johan 13 15 9 0
Zaki 13 15 6 0
Azhar 11 13 4 0
Fazil 18 17 12 0

Column subtraction:
Car
Job
A B C D
Johan 2 2 5 0
Zaki 2 2 2 0
Azhar 0 0 0 0
Fazil 7 4 8 0

No of row/col = 4
Not optimal
No of lines = 2

Revised table:

Car
Job
A B C D
Johan 0 0 3 0
Zaki 0 0 0 0
Azhar 0 0 0 2
Fazil 5 2 6 0

No of row/col = 4
Optimal
No of lines = 4

Optimal solution:

Mechanic Car Profit (RM)

Johan A 16
Zaki B 16
Azhar C 24
Fazil D 33
RM89

(There are alternative optimal solution)

QUESTION 5

d = 50 D = 50 x 300 = 15000 Pcost = 2 Co = 25 Ch = 0.3 x 2 = 0.6

2DCo 2×15000×25
a) EOQ= = =1118.03units
Ch 0.6

D Q 15000 1118.03
TC= Co + Ch +PD= ×25+ ×0.6+2×15000=RM30,670.82
Q 2 1118.03 2

Q 1118.03
b) T = = =0.0745 years / 22.35 days
D 15000
PART B Payoff
(RM’000)
QUESTION 1 EMV1=30
success (0.75)
a) 45
1 Unsuccessful (0.25)
-15
EMV2=36.55 success (0.75)
EMV10=29.8
36.5 WC 58
2 Unsuccessful (0.25)
29.8 – 2.4 -28
=27.4
10 EMV3=0 success (0.75)
0
3 Unsuccessful (0.25)
0

EMV4=3 success (0.30)

27.9
45
4 Unsuccessful (0.70)
-15
EMV5=-2.2 success (0.30)
WC 58
3
5 Unsuccessful (0.70)
-28
EMV6=0 success (0.30)
0
6 Unsuccessful (0.70) 0

EMV7=24 success (0.65)

45
7 unsuccessful (0.35) -15
EMV8=27.9 success (0.65) 58
WC
27.9 8 unsuccessful (0.35) -28

EMV9=0 success (0.65) 0

9 Unsuccessful (0.35) 0

b) EMVs
c) Decision : Puan Alina should not conduct a research since the maximum EMV is RM27,900
and open Western Cuisine restaurant
d) EVSI = RM29,800 – RM27,900 = RM1,900
The cost of conducting survey is less than EVSI, so it is worthwhile to hire the marketing
research firm
QUESTION 2
a)
X1 is the number of coffee table to be sold
X2 is the number of dining table to be sold

Maximize Z = 150 X1 + 500 X2

Subject to :
20 X1 + 35 X2 ≤ 3300
90 X1 + 120 X2 ≤ 5500
120 X1 + 200 X2 ≤ 4500
X2 ≥ 15
X1 , X2 ≥ 0

b)

i) Complete final simplex tableau

Cj Solution Mix 40 65 50 0 0 0 Quantity

X1 X2 X3 S1 S2 S3
0 S1 40 50 0 1 0 -100 400
0 S2 -25 -35 0 0 1 -30 840
50 X3 1 1.5 1 0 0 0.5 6
Zj 50 75 50 0 0 25 300
Cj - Zj -10 -10 0 0 0 -25

ii) Optimal solution

X1 = 0 S1 = 400
X2 = 0 S2 = 840
X3 = 6 S3 = 0
Zj = RM300

iii) S3 = 25
If area of land increased by 1 hectare, the total profit will increase by RM25.
iv) The dual
Let Y1, Y2, Y3 be the dual variables associated with primal:
Minimize Z = 1600 Y1 + 1200 Y2 +12Y3
Subject to :
240 Y1 + 35 Y2 + 2Y3 ≥ 40
350 Y1 + 55 Y2 + 3Y3 ≥ 65
200 Y1 + 60 Y2 + 2Y3 ≥ 50
Y1, Y2, Y3 ≥ 0
QUESTION 3
a) The transportation problem is not balanced since total demand is not equal to total supply
b)
i) Set up initial transportation cost and find initial solution

A B C SUPPLY
20 18 15
Lobster 2 420 7 420
22 25 12
Crabs 360 3 40 400
18 15 10
Mussels -2 -5 380 380
0 0 0
Dummy 40 130 10 170

DEMAND 400 550 420 1370

Total initial cost = RM19,760

ii) Find optimal solution

m+n-1 = no of allocations = 6
Based on the table above, the solution is not optimal since not all kij ≥ 0.

iii) Improve the solution

A B C SUPPLY
20 18 15
Lobster -3 420 -2 420
22 25 12
Crabs 230 8 170 400
18 15 10
Mussels -2 130 250 380
0 0 0
Dummy 170 5 10 170

DEMAND 400 550 420 1370

The solution is not optimal since not all kij ≥ 0.

 A B C SUPPLY
20 18 15
Lobster 230 190 2 420
22 25 12
Crabs 3 8 400 400
18 15 10
Mussels 1 360 20 380
0 0 0
Dummy 170 2 7 170

DEMAND 400 550 420 1370

The solution is nor optimal

Optimal solution:

Types of Hotel Number of Cost Total Cost

Seafood Units (kg) (per kg)
Lobster A 230 20 4600
Lobster B 190 18 3420
Crab C 400 12 4800
Mussels B 360 15 5400
Mussels C 20 10 200
Dummy A 170 0 0

TOTAL COST RM18,420

c) RM18,420

d) There is no alternative optimal solution since no improvement indices equal to zero.

 QUESTION 4

a)

G 8 15 J 34 42
7 27 34 8 34 42

A 0 8 D 8 14 H 14 24 I 24 34
8 0 8 6 8 14 10 14 24 10 24 34

START B 0 6 E 6 15 F 15 23 FINISH
6 1 7 9 7 16 8 16 24

C 0 7
7 1 8

b) critical path : A – D – H – I – J
project completion time = 42 weeks

c)

All Path Weeks

AGJ 23
ADHIJ 42
CDHIJ 41
BEFIJ 41

Activity Total Allowable Crash Cost per

Activity Crash cost (RM)
Crash Time Week (RM)
A 1 50 A 50
B 1 200 D 150
C 2 50 H 200
I 100
D 1 150
J 100
E 1 100 B 200
F 1 300 E 100
G 1 200 F 300
H 2 100 RM1,200
I 1 100
J 1 100
QUESTION 5

Time
Cum.
between Probability RN Interval
Probability
arrival
2 0.2 0.20 1 - 20
4 0.3 0.50 21 - 50
6 0.25 0.75 51 - 75
8 0.2 0.95 76 - 95
10 0.05 1.00 96 - 00

Service Cum.
Probability RN Interval
Time Probability
2 0.35 0.35 1- 35
4 0.22 0.57 36 - 57
6 0.38 0.95 58 - 95
8 0.05 1.00 96 - 00

Simulation
Time
Arrival Service Start End Waiting
Arrival RN1 between RN2 Idle time
time Time time time time
arrival
1 21 4 10.04 9 2 10.04 10.06 - 4
2 67 6 10.10 86 6 10.10 10.16 - 4
3 69 6 10.16 94 6 10.16 10.22 - -
4 26 4 10.20 82 6 10.22 10.28 2 -
5 74 6 10.26 62 6 10.28 10.34 2 -
6 0 10 10.36 93 6 10.36 10.42 - 2
7 25 4 10.40 49 4 10.42 10.46 2 -
8 99 10 10.50 55 4 10.50 10.54 - 4
9 58 6 10.56 20 2 10.56 10.58 - 2
10 39 4 11.00 32 2 11.00 11.02 - 2
6 18

Average waiting time = 0.6 minutes

Average idle time = 1.8 minutes