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    MBA 205 - OPERATIONS RESEARCH - 2nd SEM

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    prayas sarkar
    Capital Foods is planning an advertising campaign for its new instant noodle product and must resolve multiple operational problems. The document provides data on advertising through print, TV, and social media; transportation costs from factories to distribution centers; sales potential and assignment of sales zones; inventory costs and quantities at manufacturing plants; and customer arrival and service rates at a Big Bazaar billing counter. The student is asked to answer eight questions related to analyzing this data and resolving Capital Foods' problems through operations research techniques.

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    MBA 205 - OPERATIONS RESEARCH - 2nd SEM

    Uploaded by

    prayas sarkar
    92 views4 pages
    Capital Foods is planning an advertising campaign for its new instant noodle product and must resolve multiple operational problems. The document provides data on advertising through print, TV, and social media; transportation costs from factories to distribution centers; sales potential and assignment of sales zones; inventory costs and quantities at manufacturing plants; and customer arrival and service rates at a Big Bazaar billing counter. The student is asked to answer eight questions related to analyzing this data and resolving Capital Foods' problems through operations research techniques.

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    MBA 205_ OPERATIONS RESEARCH_2nd SEM

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    Capital Foods is planning an advertising campaign for its new instant noodle product and must resolve multiple operational problems. The document provides data on advertising through print, TV, and social media; transportation costs from factories to distribution centers; sales potential and assignment of sales zones; inventory costs and quantities at manufacturing plants; and customer arrival and service rates at a Big Bazaar billing counter. The student is asked to answer eight questions related to analyzing this data and resolving Capital Foods' problems through operations research techniques.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    92 views4 pages

    MBA 205 - OPERATIONS RESEARCH - 2nd SEM

    Uploaded by

    prayas sarkar
    Capital Foods is planning an advertising campaign for its new instant noodle product and must resolve multiple operational problems. The document provides data on advertising through print, TV, and social media; transportation costs from factories to distribution centers; sales potential and assignment of sales zones; inventory costs and quantities at manufacturing plants; and customer arrival and service rates at a Big Bazaar billing counter. The student is asked to answer eight questions related to analyzing this data and resolving Capital Foods' problems through operations research techniques.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    MBA 2020

    VU 2nd Semester Examination

    Paper Code: MBA- 205

    Subject: Operations Research

    Total Marks: 100

    Read the following case study and answer the questions given below in your
    own words.
    Capital Foods is a great believer in the concept of ‘Global Food Culture’. They are committed
    to helping people get a taste of global flavours by selecting, perfecting and integrating global
    foods through our various food brands. They are one of India’s fastest-growing food
    companies with a strong presence in the highly populated Indian diaspora market of the world.
    The company offer food products and food ingredients to meet a variety of cooking needs.
    They were also the first to identify and label the unique cuisine ‘desi Chinese’, which is native
    to India but universally loved, i.e. across the USA, Canada, Australia, the UK, and Singapore.

    Capital Foods is trying to resolve multiple problems to ensure smooth operation of business.

    The company is planning for an advertisement campaign of Ching’s Instant Noodles which is
    newly launched in the market. It has decided to advertise through 3 media as of now: Print, TV
    & Social Media. The company has made a careful analysis of the three available media and has
    compiled the following set of relevant data.

    Media
    Target Audience Characteristics Print TV Social Media
    Age: 25- 35years 70% 85% 65%
    Education Level: Graduation and above 85% 75% 70%
    Income: Rs. 20000 and above 70% 60% 50%

    Media
    Print TV Social Media
    Maximum Number of Ads 60 40 30
    Minimum Number of Ads 25 10 10
    The reach obtained for each advertisement in print, RV and Social Media is 3 lakh, 5 lakh and
    4 lakh respectively. Cost of each ad in Print, TV and Social Media is Rs. 1 lakh, Rs. 2 lakh and
    Rs. 50000 respectively. The company has a budget of Rs. 2 crore to spend for this campaign.

    Capital Foods has to ensure smooth supply of the products from manufacturing units located at
    Vapi,Nashik & Gandhidham (having production capacity of 1000 cases, 1200 cases and 800
    cases respectively) to distribution centres located at Mumbai, Pune, Nagpur & Aurangabad
    (requiring 950 cases, 800 cases, 650 cases & 400 cases respectively). The transportation cost
    per case (in Rs.) from different factories to distribution centres is given below. The company
    must arrive at an optimum transportation schedule.

    Distribution Centres
    Factories
    Mumbai Pune Nagpur Aurangabad
    Vapi 13 12 17 16
    Nashik 17 15 12 13
    Gandhidham 12 15 14 13

    The company has four zones (named as I, II, III and IV) open in Pune and four salesmen
    available for assignment of zones. The zones are not equally rich in their sales potential. It is
    estimated that a typical salesman operating in each zone would bring the following annual
    sales (in lakhs of rupees). The criterion of assignment is to maximize annual sales.

    Salesman I II III IV
    Ramesh 20 30 40 25
    Sujit 15 25 30 30
    Akash 40 30 45 15
    Akshay 30 40 25 40

    While calculating the projected optimal order quantity Capital goods found the following data
    with regards to each of their manufacturing units:

    Vapi Nashik Gandhidham


    Demand 25000 units/ year 20000 units/ year 18000 units/ year
    Purchase Cost Rs. 20 per unit Rs. 15 per unit Rs. 12 per unit
    Ordering Cost Rs. 50 per order Rs. 35 per order Rs. 30 per order
    Holding Cost 25% 20% 25%

    In order to increase sales, Capital Foods have decided to position their newly launched product
    in Modern trade. They have successfully tied up with Big Bazaar and positioned their products.
    Generally there are 4 to 5 executives in the billing counter of Big Bazaar (Phoenix Mall).
    However, this week there is only one counter sales representative processing bills. It is noticed
    that customer arrival follows a Poisson distribution with a mean arrival rate of 20 per hour. The
    representative serves 2 customers in every 5 minutes and the service rate is exponentially
    distributed.
    Answer any EIGHT of the following questions. (Each carry 10 Marks –8
    x10=80 Marks)

    Q.1.Discuss the advantages and drawbacks of OR Models

    Q.2.Formulate a linear programming problem to maximize total exposure and write its
    standard form.

    Q.3.Assuming that Capital Foods decide to advertise only on Print & Television media, solve
    the LPP to determine the number of advertisements given in those two media.

    Q.4.Explain different types of inventory. Discuss ABC Analysis in detail.

    Q.5.What is duality? Write the steps of converting primal to dual problem.

    Q.6.Find the optimum transportation schedule and cost of transportation.

    Q.7.What is Economic Ordering Quantity (EOQ)? What is back ordering? What are its causes?
    Explain all types of inventory cost in brief.

    Q.8.Find the optimum assignment and determine the total sales to be achieved by four
    salesmen.

    Q.9.Discuss the terminologies and notations used in a decision tree. Write the applications of
    decision tree.

    Q.10.Determine the optimal inventory policy at each of the manufacturing units in Capital
    Foods.

    Q.11.What is traffic intensity? Discuss about customer behaviour, queuing discipline and
    service channels.

    Q.12.Find:

    a. Traffic intensity
    b. Probability that the representative in Big Bazaar would remain idle
    c. Probability that there are 5 customers standing in the queue at any given point of time.
    d. Average length of the queue
    e. Average waiting time in the queue

    [Internal Assessment: 20 Marks]

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