MBA I - RESEARCH ASSIGNMENT Course: Decision Sciences Semester: MBA I (IInd Shift) Instructor: Ms.

Amanpreet Kaur Last Date of Submission: 12th October 2012 Instructions: Assignment should be spiral bound on A-4 size sheet in typed form with times new roman style and font for heading should be 16, for subheading 14, and for normal text 12 with 1.5 line spacing. Unformatted or poorly formatted documents will be penalized Students have to submit the soft copy of the assignment on portal along with plagiarism report for the same. If the plagiarism report shows that more than 40% content is copied from internet, the assignment will not to be accepted. Students have to submit hard copy along with plagiarism report at reception along with assignment submission form. The assignments are mandatory for all the students. Assignment should be strictly in the format mentioned along with cover page and assignment submission form Format of the cover page and assignment submission form is attached for your reference. Note: Attempt any one question. Subject Code: MS 103 Batch: 2012 2014 Maximum Marks: 10

Questions
Assignment 1:

Suppose that England, France, and Spain produce all the wheat, barley, and oats in the world. The world demand for wheat requires 125 million acres of land devoted to wheat production. Similarly, 60 million acres of land are required for barley and 75 million acres of land for oats. The total amount of land available for these purposes in England, France, and Spain is 70 million acres, 110 million acres, and 80 million acres, respectively. The number of hours of labor needed in England, France and Spain to produce an acre of wheat is 18, 13, and 16, respectively. The number of hours of labor needed in England, France, and Spain to produce an acre of barley is 15, 12, and 12, respectively. The number of hours of labor needed in England, France, and Spain to produce an acre of oats is 12, 10, and 16, respectively. The labor cost per hour in producing wheat is $9.00, $7.20, and $9.90 in England, France, and Spain, respectively. The labor cost per hour in producing barley is $8.10, $9.00, and $8.40 in England, France, and Spain respectively. The labor cost per hour in producing oats is $6.90, $7.50, and $6.30 in England, France, and Spain, respectively. The problem is to allocate land use in each country so as to meet the world food requirement and minimize the total labor cost. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Reconsider the problem in the preceding example. Starting with the northwest corner rule, Find basic feasible solution. (c) Obtain an optimal solution. Assignment 2: A queuing system has two servers whose service times are independent random variables with an exponential distribution with a mean of 15 minutes. Customer X arrives when both servers are idle. Five minutes later, customer Y arrives and customer X still is being served. Another 10 minutes later, customer Z arrives and both customer X and Y are still being served. No other customer arrived during this 15-minute interval. (a) What is the probability that customer X will complete service before customer Y. (b) What is the probability that customer Z will complete service before customer X? (c) What is the probability that customer Z will complete service before customer Y? (d) Determine the cumulative distribution function of the waiting time in the system for customer X. Also determine the mean and standard deviation. (e) Determine the expected value and standard deviation of the waiting time in the system for customer Z. Assignment 3: Sarah has just graduated from high school. As a graduation present, her parents have given her a car fund of $21,000 to help purchase and maintain a certain three-year-old used car for college. Since operating and maintenance costs go up rapidly as the car ages, Sarah's parents tell her that she will be welcome to trade in her car on another three-year-old car one or more times during the next three summers if she determines that this would minimize her total net cost. They also inform her that they will give her a new car in four years as a college graduation present, so she should definitely plan to trade in her car then.

The table gives the relevant data for each time Sarah purchases a three-year-old car. For example, if she trades in her car after two years, the next car will be in ownership year 1 during her junior year, etc. Sarah's Data Each Time She Purchases a Three-Year Old Car Purchase Price $12,000 Operating and Maintenance Costs for Ownership Year 1 2 3 4 $2,000 $3,000 $4,500 $6,500 Trade-in Value at End of Ownership Year 1 2 3 4 $8,500 $6,500 $4,500 $3,000

When should Sarah trade in her car (if at all) during the next three summers to minimize her total net cost of purchasing, operating, and maintaining the cars over her four years of college? Formulate this problem as a shortest-path problem

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