Indian Institute of Management Kozhikode

OPERATIONS RESEARCH (D)

EPGP 13 END TERM EXAMINATION 2021
Time: 2.5 Hrs. Marks: 45

All questions are compulsory. The candidates are allowed to use only the prescribed textbook
and the slides shared by the instructor. Students are also permitted to use calculators. All
answers need to made on the paper and the same should be uploaded.

Question 1

Toyz is a large discount toy store in Valley Wood Mall. The store typically has slow sales in the
summer months that increase dramatically and rise to a peak at Christmas. During the summer and
fall, the store must build up its inventory to have enough stock for the Christmas season. To
purchase and build up its stock during the months when its revenues are low, the store borrows
money.

Following is the store’s projected revenue and liabilities schedule for July through December
(where revenues are received and bills are paid at the first of each month):

Month Revenues Liabilities

July $20,000 $60,000
August 30,000 60,000
September 40,000 80,000
October 50,000 30,000
November 80,000 30,000
December 100,000 20,000

At the beginning of July, the store can take out a 6-month loan that carries an 11% interest rate
and must be paid back at the end of December. The store cannot reduce its interest payment by
paying back the loan early. The store can also borrow money monthly at a rate of 5% interest per
month.

Money borrowed on a monthly basis must be paid back at the beginning of the next month. The
store wants to borrow enough money to meet its cash flow needs while minimizing its cost of
borrowing. Formulate a linear programming model for this problem. [12]

Question 2

Valley United Soccer Club has 16 boys’ and girls’ travel soccer teams. The club has access to three
town fields where the teams practice in the fall during the season. Field 1 is large enough to
accommodate two teams at one time, and field 3 can accommodate three teams, whereas field 2
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has enough room for only one team. The teams practice twice per week, either on Monday and
Wednesday, from 3 P.M. to 5 P.M. or 5 P.M. to 7 P.M., or on Tuesday and Thursday, from 3 P.M.
to 5 P.M. or 5 P.M. to 7 P.M. Field 3 is in the worst condition of all the fields, so teams generally
prefer the other fields; teams also do not like to practice at field 3because it got crowded with three
teams. In general, the younger teams like to practice right after school, while older teams like to
practice later in the day. In addition, some teams must practice later because their coaches are
available only after work. Some teams also prefer specific fields because they’re closer to their
player’s homes. Each team has been asked by the club field coordinator to select three practice
locations and times, in priority order, and they have responded as follows:

Team Priority
1 2 3
U11B Monday; Field 2; 3 – 5 P.M. Monday; Field 1; 3 – 5 P.M. Monday; Field 3; 3 – 5 P.M.
U11G Tuesday; Field 1; 3 – 5 P.M. Tuesday; Field 2; 3 – 5 P.M. Tuesday; Field 3; 3 – 5 P.M.
U12B Tuesday; Field 2; 3 – 5 P.M. Tuesday; Field 1; 3 – 5 P.M. Tuesday; Field 3; 3 – 5 P.M.
U12G Monday; Field 1; 3 – 5 P.M. Tuesday; Field 1; 3 – 5 P.M. Monday; Field 2; 3 – 5 P.M.
U13B Tuesday; Field 2; 3 – 5 P.M. Monday; Field 2; 3 – 5 P.M. Monday; Field 1; 3 – 5 P.M.
U13G Monday; Field 1; 3 – 5 P.M. Monday; Field 2; 3 – 5 P.M. Monday; Field 1; 3 – 5 P.M.
U14B Monday; Field 1; 5 – 7 P.M. Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M.
U14G Monday; Field 2; 3 – 5 P.M. Monday; Field 1; 3 – 5 P.M. Tuesday; Field 2; 3 – 5 P.M.
U15B Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M. Monday; Field 1; 5 – 7 P.M.
U15G Monday; Field 2; 5 – 7 P.M. Monday; Field 1; 5 – 7 P.M. Tuesday; Field 1; 5 – 7 P.M.
U16B Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M. Tuesday; Field 3; 5 – 7 P.M.
U16G Tuesday; Field 2; 5 – 7 P.M. Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 3; 5 – 7 P.M.
U17B Monday; Field 2; 5 – 7 P.M. Tuesday; Field 1; 5 – 7 P.M. Monday; Field 1; 5 – 7 P.M.
U17G Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M. Monday; Field 1; 5 – 7 P.M.
U18B Monday; Field 2; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M. Monday; Field 1; 5 – 7 P.M.
U18G Monday; Field 1; 5 – 7 P.M. Tuesday; Field 1; 5 – 7 P.M. Tuesday; Field 2; 5 – 7 P.M.

For example, the under 11 boys (Team Code U11B) age group team has selected field 2 from
3P.M. to 5 P.M. on Monday and Wednesday as its priority 1, field 1 from 3P.M. to 5 P.M. on
Monday and Wednesday as its priority 2, and so on. Formulate a linear programming model to
optimally assign the teams to fields and times, according to their priorities? [15]

Question 3

The figure below shows the delivery network for a courier company where the nodes (denoted
with alphabets) represent the hubs and the arcs represent the routes that connect two nodes. The
numbers shown on an arc represents the time required to travel that portion of the route. The courier
company has a parcel, originating at node A, to be delivered at node L. Find the route from node
A to destination L that takes minimum amount of time. [8]

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Question 4

The Virginia Department of Transportation is undertaking a construction project to widen a large

section of interstate highway near Wahington, DC. The project includes the construction of a
number of new bridges, interchanges and overpasses. The first step in the process is to appoint a
project manager and develop a project team, whose members will be departmental employees and
private consultants and operatives. The team for a project of this size also requires a large support
staff with a variety of technical skills. Once the team is selected and the staff is in place, the next
task is to select a primary contractor to manage and oversee the construction. The following
activities are standard for the planning and scheduling of this process:

Activity Activity description Activity Time

predecessor estimates
(weeks)
a m b
a Select project management --- 1 2 2

b Develop team recruitment process a 1 2 3

c Implement team recruitment process b 3 6 8

d Staff needs assessment b 1 2 3

e Staff recruitment advertising d 1 1 1

f Staff selection evaluation procedures b 1 2 4

g Select project team members c 2 4 6

h Develop contractor bid requirements a 1 4 6

i Develop contractor bid evaluation procedure g,h 2 3 4

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 j Staff applicant evaluation and selection c,f,g 2 4 5

k Solicit contractor bids i,j 4 6 10

l Contract bids evaluation k 3 6 8

m Select contractor and complete negotiations l 2 3 5

Construct the CPM/PERT network for this project and determine the project schedule. Identify the
critical path and determine the expected project duration time and variance. What is the probability
that the team and contractor will be in place and the project started within 6 months? within 1 year?

[5+2+3]

(The NORMAL DISTRIBUTION TABLE is provided below)

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 NORMAL DISTRIBUTION TABLE
.00 .01 .02 .03 .04 .05 .06 .07 .08 .09
.0 .5000 .5040 .5080 .5120 .5160 .5199 .5239 .5279 .5319 .5359
.1 .5398 .5438 .5478 .5517 .5557 .5596 .5636 .5675 .5714 .5753
.2 .5793 .5832 .5871 .5910 .5948 .5987 .6026 .6064 .6103 .6141
.3 .6179 .6217 .6255 .6293 .6331 .6368 .6406 .6443 .6480 .6517
.4 .6554 .6591 .6628 .6664 .6700 .6736 .6772 .6808 .6844 .6879

.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224
.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 .7486 .7517 .7549
.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852
.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133
.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389

1.0 .8413 .8438 .8461 .8485 .8508 .8531 .8554 .8577 .8599 .8621
1.1 .8643 .8665 .8686 .8708 .8729 .8749 .8770 .8790 .8810 .8830
1.2 .8849 .8869 .8888 .8907 .8925 .8944 .8962 .8980 .8997 .9015
1.3 .9032 .9049 .9066 .9082 .9099 .9115 .9131 .9147 .9162 .9177
1.4 .9192 .9207 .9222 .9236 .9251 .9265 .9279 .9292 .9306 .9319

1.5 .9332 .9345 .9357 .9370 .9382 .9394 .9406 .9418 .9429 .9441
1.6 .9452 .9463 .9474 .9484 .9495 .9505 .9515 .9525 .9535 .9545
1.7 .9554 .9564 .9573 .9582 .9591 .9599 .9608 .9616 .9625 .9633
1.8 .9641 .9649 .9656 .9664 .9671 .9678 .9686 .9693 .9699 .9706
1.9 .9713 .9719 .9726 .9732 .9738 .9744 .9750 .9756 .9761 .9767

2.0 .9772 .9778 .9783 .9788 .9793 .9798 .9803 .9808 .9812 .9817
2.1 .9821 .9826 .9830 .9834 .9838 .9842 .9846 .9850 .9854 .9857
2.2 .9861 .9864 .9868 .9871 .9875 .9878 .9881 .9884 .9887 .9890
2.3 .9893 .9896 .9898 .9901 .9904 .9906 .9909 .9911 .9913 .9916
2.4 .9918 .9920 .9922 .9925 .9927 .9929 .9931 .9932 .9934 .9936

2.5 .9938 .9940 .9941 .9943 .9945 .9946 .9948 .9949 .9951 .9952
2.6 .9953 .9955 .9956 .9957 .9959 .9960 .9961 .9962 .9963 .9964
2.7 .9965 .9966 .9967 .9968 .9969 .9970 .9971 .9972 .9973 .9974
2.8 .9974 .9975 .9976 .9977 .9977 .9978 .9979 .9979 .9980 .9981
2.9 .9981 .9982 .9982 .9983 .9984 .9984 .9985 .9985 .9986 .9986

3.0 .9987 .9987 .9987 .9988 .9988 .9989 .9989 .9989 .9990 .9990
3.1 .9990 .9991 .9991 .9991 .9992 .9992 .9992 .9992 .9993 .9993
3.2 .9993 .9993 .9994 .9994 .9994 .9994 .9994 .9995 .9995 .9995
3.3 .9995 .9995 .9995 .9996 .9996 .9996 .9996 .9996 .9996 .9997
3.4 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9998

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