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Quantitative Assignment

Part 1 contains 11 multiple choice questions related to quantitative analysis concepts like operations research, modeling, and optimization. Part 2 contains 5 work problems involving topics like linear programming formulation and solution methods, transportation problems, assignment problems, and decision making under uncertainty. Students are expected to complete the assignment individually and submit by the given deadline to receive full marks.

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Alemu Muleta Kebede
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202 views6 pages

Quantitative Assignment

Part 1 contains 11 multiple choice questions related to quantitative analysis concepts like operations research, modeling, and optimization. Part 2 contains 5 work problems involving topics like linear programming formulation and solution methods, transportation problems, assignment problems, and decision making under uncertainty. Students are expected to complete the assignment individually and submit by the given deadline to receive full marks.

Uploaded by

Alemu Muleta Kebede
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Course Title Quantitative analysis for decision making Assignment -2

Value of the 50%


assignment
Submission date June 05, 2020 G.C

Guidelines:

 Students are expected to perform individually


 Not meeting deadline will have (minus 3 marks per day).

Student’s Name
Id. No.__________________
Department & Section: ________________________________

Part – 1 Multiple choices

Direction 1: Choose the best answer from the given alternatives and put your answers on the
space provided (1.5 point each)

1. Which one of the following statement is wrong about operations research?


A. It attempts to resolve the conflicts of interest among various sections of the
organization.
B. Seeks the optimal solution which may not be acceptable to one department but it is
the interest of the organization as a whole.
C. It tries to come up with a sub optimum instead of a global optimum decision.
D. It is a multidisciplinary approach
E. None
2. For analyzing a problem decision makers should normally study

A. Its qualitative aspects C. Both (A) and (B)


B. Its quantitative aspects D. Neither (A) nor (B)

3. A model is

A. An essence of reality C. An idealization


B. An approximation D. All of the above

4. Every mathematical model


A. Must be deterministic
B. Requires computer aid for its solution
C. Represents data in numerical form
D. All of the above
5. Blueprints of a home, maps, globes, photographs and drawings are best examples of

A. Iconic models C. Symbolic models


B. Analogue models D. A and B

6. An optimization model
A. Mathematically provides the best decision
B. Provides decision within its limited context
C. Help in evaluating various alternatives constantly
D. All of the above
7. The key column in a simplex table indicates

A. Leaving variable C. Slack variable


B. entering variable D. Surplus variable

8. To convert ≤ type of inequality into equations in simplex approach, we have to

A. Assume them to be equations C. Subtract slack variables.


B. Add surplus variables, D. Add slack variables
9. When we solve maximization problem by simplex method the elements of net evaluation
row(Cj-Zj) of optimal solution must be
A. Either zeros or positive numbers
B. Either zeros or negative numbers,
C. All are negative numbers
D. All are zeros
10. The horizontal and vertical lines drawn to cover all zeros of total opportunity matrix must
be:
A. Equal to each other
B. Must be equal to m × n (where m and n are number of rows and columns)
C. m + n ( m and n are number of rows and columns)
D. Number of rows or columns.
11. The row, which is introduced in the matrix to balance the transportation model, is known
as:

A. Key row
B. Idle row
C. Dummy row
D. Slack row
12. In Northwest corner method the allocations are made
A. Starting from the left hand side top corner
B. Starting from the right hand side top corner
C. Starting from the lowest cost cell
D. Starting from the lowest requirement and satisfying first.
PART II: Work out problems
Direction 2: attempt all questions by showing the necessary steps clearly. (32 points)
1. Suppose that a machine shop has two different types of machines; namely Machine 1 and
Machine 2, which can be used to make a single product. These machines vary in the amount
of product produced, labor used and cost of operation. At least a certain amount of product
must be produced and that we should have to utilize at least the regular labor force.

Resource Used Minimum Required


Items Hours
Machine 1 Machine 2

Product produced/hr 20 15 100


Labor/hr 2 3 15
Operation $ $
Cost 2 3
5 0

A. Formulate the Linear programming problem. (4 point)


B. How much do we produce on each machine in order to minimize the total cost
without compromising the requirement? Use graphical method (4 point)
2. Consider the following transportation problem for ABC Company. A company has three
warehouses open and three firms are available to supply products to the warehouses. The
firms are differing in their supplying capacity and warehouse also differs in their
receiving capacity.

Store-1 Store-2 Store-3 Store- 4 supply

Firm-A 1 3 5 3 100

Firm-B 4 2 9 2 100

Firm-C 7 6 8 8 200
Demand 50 100 100 150

Required

A) Find an initial feasible solution by using the Least cost Method (LCM)(4 points)
B) Find the feasible solution through Vogal’s approximation method(VAM) (4 points)
3. Five salesmen are to be assigned to five territories. Based on the past performance, the
following table shows the annual sales man in each territory. Find the optional
assignment.(5 Points)

T1 T2 T3 T4 T5

S1 26 14 10 12 9

S2 31 27 30 14 16

S3 15 18 16 25 30

S4 17 12 21 30 25

S5 20 19 25 16 10

4. Consider the following payoff table for three alternatives, A, B, and C, under two future
states of the economy, good and bad.

Economic Conditions

Investment Good Bad

A $ 75,000 $ 25,000

B 120,000 -40,000

C 40, 000 40,000

i. Determine the decision using the following decision criteria.


A. Maximax (1 point)
B. Maximin (1 point)
C. Minimax regret (2 point)
D. Hurwicz (α = 0.48) (1point)
E. Equal likelihood (1 point)
ii. Assume that the probability of good economic condition is 0.7, then what will be
your decision using the
A. Expected Monetary Value (EMV) (2 point)
B. Expected Opportunity Loss (EOL) (2 point)

5. A company manufactures two products P1 and P2. Profit per unit for P1 is $200 and for
P2 is $300. Three raw materials M1, M2 and M3 are required. One unit of P1 needs 5
units of M1 and 10 units of M2. One unit of P2 needs 18 units of M2 and 10 units of M3.
Availability is 50 units of M1, 90 units of M2 and 50 units of M3.
A. Formulate as LPP (5 point)
B. Find the optimal solution by using simplex method (5 point)

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