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in

SRM VALLIAMMAI ENGINEERING COLLEGE

(An Autonomous Institution)
SRM Nagar, Kattankulathur– 603 203

DEPARTMENT OF MECHANICAL ENGINEERING

QUESTIONBANK

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VII Semester / 4th Year

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MG8491Operations Research
Regulation – 2017
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Academic Year: 2020– 2021

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Preparedby
Sony Priyanka D, Assistant Professor (OG) / Mechanical Engineering

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SRM VALLIAMMAI ENGINEERING COLLEGE

DEPARTMENT OF MECHANICAL ENGINEERING
ME6015 -Operations Research

UNIT I LINEAR MODELS

The phase of an operation research study – Linear programming – Graphical method– Simplex algorithm –
Duality formulation – Sensitivity analysis.

PART-A (2 Marks)

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S.No Questions Level Competence

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1. What are the essential characteristics of operations research? 2 Understand
2. Define operational research. 1 Remember

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3. List out various phases of solving an operational research problem. 1 Remember

4. Discuss the advantage and limitations of operational research. 2 Understand

5.
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Differentiate between simplex and Big M method. 2 Understand
6. Compare slack variable and surplus variable. 1 Remember
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7. Define Linear Programming problem. 1 Remember
8. What is meant by feasible solution of an LP problem? 5 Evaluate
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9. What are the advantages and limitations of LP models? 5 Evaluate

10. Distinguish between feasible and optimal solution.
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2 Understand
11. Outline the simplex method in linear programming. Why is it called
3 Apply
so?
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12. Give outline of the simplex method in linear programming. 3 Apply

13. Define slack and surplus variable in a LP problem. 1 Remember
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14. Define the dual of a linear programming problem. 1 Remember

15. Briefly discuss 'duality' in LP. 2 Understand
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16. Write a short note on sensitivity analysis. 2 Understand

17. What is the role of sensitivity analysis in LP. 2 Understand
18. Analyze the difference between unrestricted and artificial variables. 4 Analyze
19. What is an Infeasible solution? 5 Evaluate
20. Generalize the maximization LPP with an example. 6 Create

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PART-B (13 Marks)

1. What reasons can you think of to explain the fact that many models
3 Apply
are built and never implemented? Does this mean that implementation
mean that entire activity of model development was a waste?
2. A Manufacturing company is engaged in producing three types of
production: A, B and C. The production department produces, each
day, components sufficient to make 50 unit of A, 25 units of B and
30 units of C. The management is confronted with the problem of

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optimizing the daily production of the product in the assembly

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department, where only 100 man-hours are available daily for
assembling the products. The following additional information is

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available.
The company has a daily order commitment for 20 units of products 3 Apply
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A and a total of 15 units of products B and C. Formulate this problem
as an LP model so as to maximize the total profit.
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Type of Profit contribution per Assembly time
product unit of product (Rs) per product (hrs)
A 12 0.8
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B 20 1.7
C 45 2.5
3. Use the graphical method to solve the following LP problem.
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Maximize Z = 15x1 + 10 x2 subject to the constraints

3 Apply
(i) 4x1 + 6x2 ≤ 360, (ii) 3x1 + 0x2 ≤ 180, (iii) 0x1 + 5x2 ≤ 200
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and x1, x2 ≥ 0
4. Use the graphical method to solve the following LP problem.
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Maximize Z = 2x1 + x2 subject to the constraints

3 Apply
(i) x1 + 2x2 ≤ 10, (ii) x1 + x2 ≤ 6, (iii) x1 - x2 ≤ 2,
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(iv) x1 - 2x2 ≤ 1, and x1, x2 ≥ 0

5. Anita Electric Company produces two products P1 and P2. Products
are produced and sold on a weekly basis. The weekly production
cannot exceed 25 for product P1 and 35 for product P2 because of
limited available facilities. The company employs total of 60
4 Analyze
workers. Product P1 required 2 man-weeks of labour, while P2
requires one men-week of labour. Profit margin on P1 is Rs. 60 and
on P2 is Rs. 40. Formulate this problem as an LP problem and solve
that using graphical method.

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6. Use the graphical method to solve the following LP problem.
Minimize Z = 3x1 + 2x2 subject to the constraints
3 Apply
(i) 5x1 + x2 ≥ 10, (ii) x1 + x2 ≥ 6, (iii) x1 + 4x2 ≥ 12,
And x1, x2 ≥ 0
7. A diet for a sick person must contain at least 4,000 units of vitamins,
50 units of minerals and 1,400 calories. Two foods A and B are
available at a cost of Rs.4 and Rs.3 per unit, respectively. If one of A
contains 200 units of vitamins, 1 unit of mineral and 40 calories and
4 Analyze
one unit of food B contains 100 units of vitamins, 2 units of minerals
and 40 calories. Formulate this problem as an LP model and solve it

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by graphical method to find combination of foods to be used to have

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least cost?
8. Use the simplex method to solve the following LP problem.

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Maximize Z = 3x1 + 5x2 + 4x3 subject to the constraints
3 Apply
(i) 2x1 + 3x2 ≤ 8, (ii) 2x2 + 5x3 ≤ 10, (iii) 3x1 + 2x2 + 4x3 ≤ 15,
And x1, x2, x3 ≥ 0
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9. Explain the various steps of the simplex method involved in the
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computation of an optimum solution to a linear programming 5 Evaluate
problem.
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10. What is the principle of duality in linear programming? Explain its

5 Evaluate
advantages.
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11. Obtain the dual LP problem of the following primal LPP.

Minimize Z = x1 + 2x2 subject to the constraints
4 Analyze
(i) 2x1 + 4x2 ≤ 160, (ii) x1 - x2 ≤ 30, (iii) x1≥ 10,
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And x1, x2 ≥ 0
12. Discuss the role of sensitivity analysis in linear programming. Under
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what circumstances is it needed? And under what conditions do you 1 Remember

think it is not necessary?
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13. Solve the following LP problem.

Maximize Z = 4x1 + 6x2 + 2x3 subject to the constraints
(i) x1 + x2 + x3 ≤ 3, (ii) x1 + 4x2 + 7x3 ≤ 9 And x1, x2, x3 ≥ 0
i. Discuss the effect of discrete change in the availability of
4 Analyze
resources from [3,9]T to [9,6]T.
ii. Which resource should be increased (or degreased) in order to
get the best marginal increase in the value of the objective
function?

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14 Use simplex method to solve the following LP problem:
Maximize Z = 3x1 + 5x2 subject to the constraints
(i) 3x1 + 2x2 ≤ 18, (ii) x1 ≤ 4, (iii) x2 ≤ 6,
4 Analyze
and x1, x2 ≥ 0
Discuss the change in Cj on the optimality of the optimal basic
feasible solution.

PART-C (15 Marks)

1. Discuss the role and scope of quantitative methods for scientific
6 Create

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decision-making in a business environment.

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2.
Define Iso-profit and iso-cost lines. How does these help us to obtain a
5 Evaluate
solution to an LP problem?

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3. Linear programming has no real-life applications. Do you agree with
6 Create
this statement? Discuss.
4. ee
A toy Company manufactures two types of doll, A and B. Each doll of
type B takes twice as long to produce as one of type A, and the
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company has time to make a maximum of 2000 per day. The supply of
plastic is sufficient to produce 1500 dolls per day (both A and B
combined). The type B requires a fancy dress of which there are only
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5 Evaluate
600 per day available. If the company makes a profit of Rs.3.00 and
Rs.5.00 per doll, respectively on doll A and B, then how many of each
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doll should be produced per day in order to maximize the total profit.
Formulate this problem and discuss the components of decision
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Making.
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UNIT II TRANSPORTATION MODELS AND NETWORK MODELS
Transportation Assignment Models –Traveling Salesman problem-Networks models – Shortest route –
Minimal spanning tree – Maximum flow models –Project network – CPM and PERT networks – Critical path
scheduling – Sequencing models.

PART-A (2 Marks)
S.No Questions Level Competence
What are the characteristics of transportation problem of linear
1. 2 Understand
programming?
What is meant by non-degenerate basic feasible solution of a
2. 2 Understand
transportation problem?

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Describe in brief three, methods of initial feasible solution of a

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3. 1 Remember
transportation problem.
Define optimality test in a transportation problem.

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4. 1 Remember

Why is a dummy source added to a transportation problem?

5. 2 Understand
6.
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What is meant by unbalanced transportation problem? 3 Apply
Distinguish between transportation problem and an assignment
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7. 1 Remember
problem.

8. What is an assignment problem? 5 Evaluate

Describe how a maximization problem is solved using assignment
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9. 5 Evaluate
model.

10. Illustrate the traveling salesman problem. 2 Understand

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11. Briefly mention the areas of application of network techniques. 3 Apply

12. Compare and contrast CPM and PERT. 3 Apply
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Define the following terms in PERT/CPM (i) Earliest time (ii) Latest
13. 1 Remember
time (iii) Total activity time
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14. Define float. 1 Remember

15. What are the different types of floats? 2 Understand
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16. Discuss in brief: (i) total float (ii) free float. 2 Understand
17. Compare Vogel approximation method and Least Cost method. 2 Understand
18. Compare pessimistic time with optimistic time. 4 Analyze
Write a short note on the sequencing decision problem for n jobs on
19. 6 Create
two machines.
Give three different examples of sequencing problems from your daily
20. 5 Evaluate
life.

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PART-B (13 Marks)

1. A dairy firm has three plants located in a state. The daily milk
production at each plant is as follows: Plant 1: 6 million litres, Plant 2:
1 million litres, and Plant 3: 10 million litres. Each day, the firm must
fulfil the needs of its four distribution centres. The minimum
requirement of each centre is as follows: Distribution centre 1: 7
million litres, Distribution centre 2: 5 million litres, Distribution
centre 3: 3 million litres, and Distribution centre 4: 2 million litres

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Cost (in hundreds of rupees) of shipping one million litre from each

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plant to each distribution centre is given in the following table:
Distribution Centre 3 Apply

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D1 D2 D3 D4
P1 2 3 11 7
Plant
P2 1 0 ee 6 1
P3 5 8 15 9
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Find the initial basic feasible solution for given problem by using
following methods:
a. North-west corner rule
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b. Least cost method

c. Vogel's approximation method
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2. Explain the various steps involved in solving transportation problem

2 Understand
using (i) Least cost method, and (ii) Vogel's approximation method.
3.
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How does degeneracy occur in transportation problem? Explain how to

2 Understand
resolve degeneracy?
4. Determine an initial basic feasible solution to the following
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transportation problem by using (a) NWCR (b) LCM and (c) VAM
Destination
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D1 D2 D3 D4 Supply
4 Analyze
S1 21 16 15 3 11
Source S2 17 18 14 23 13
S3 32 27 18 41 19
Demand 6 6 8 23

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5. ABC Limited has three production shops that supply a product to five
warehouses. The cost of production various from shop to shop and cost
of transportation from one shop to a warehouse also varies. Each shop
has a specific production capacity and each warehouse has certain
amount of requirement. The costs of transportation are given below:
Warehouse
I II III IV V Supply
A 6 4 4 7 5 100
B 5 6 7 4 8 125
Shop 4 Analyze
C 3 4 6 3 4 175

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Demand 60 80 85 105 70 400

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The cost of manufacturing the product at different production shops is
Shop Variable Cost Fixed Cost

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A 14 7,000
B 16 ee 4,000
C 15 5,000
Find the optimum quantity to be supplied from each shop to different
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warehouses at the minimum total cost.
6. The following table provides all the necessary information on the
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availability of supply to each warehouse, the requirement of each

market, and the unit transportation cost (in Rs.) from each warehouse
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to each market.
Market
P Q R S Supply
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A 6 3 5 4 22
warehouse B 5 9 2 7 15
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C 5 7 8 6 8
Demand 7 12 17 9 45 5 Evaluate
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The shipping clerk of the shipping agency has worked out the
following schedule, based on his own experience: 12 units from A to
Q, 1 unit from A to R, 9 units A to S, 15 units from B to R, 7 units
from C to P and 1 unit from C to R.
a. Check and see if the clerk has the optimal schedule.
b. Find the optimal schedule and minimum total transport cost.
If the clerk is approached by a carrier of route C to Q who offers to
reduce his rate in the hope of getting some business, by how much
should the rate be reduced before the clerk would offer him the

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business.

7. Describe the computational procedure of the optimality test in a

1 Remember
transportation problem.
8. Give the mathematical formulation of an assignment problem. How
1 Remember
does it differ from a transportation problem?
9. The data on normal time, and cost and crash time and cost associated
with a project are shown in the following table.
Normal Crash
Activity Time Time

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Cost (Rs.) Cost (Rs.)
(weeks) (weeks)

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1-2 3 300 2 400
2-3 3 30 3 30

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2-4 7 420 5 580
2-5 9 720 7 810
3-5 5 250
ee 4 300
4-5 0 0 0 0
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5-6 6 320 4 410
5 Evaluate
6-7 4 400 3 470
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6-8 13 780 10 900

7-8 10 1000 9 1,200
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4,220
Indirect cost is Rs 50 per week.
a. Draw the network diagram for the project and identify the
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critical path.
b. What are the normal project duration and associated cost?
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c. Find out the total float associated with non-critical activities

d. Crash the relevant activities and determine the optimal project
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completion time and cost.

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10. A small project involves 7 activities, and their time estimates are listed
in the following table. Activities are identified by their beginning (i)
and ending (j) node numbers.

Activity (i-j) Estimated Duration (weeks)

1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1

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3-5 2 5 14

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4-6 2 5 8 4 Analyze
5-6 3 6 15

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i. Draw the network diagram of the activities in the project.
ii. Find the expected duration and variance for each activity. What
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is the expected project length?
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iii. Calculate the variance and standard deviation of the project
length. What is probability that the project will be completed:
(i) at least 4 weeks earlier than expected time.
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(ii) no more than 4 weeks later than expected time.

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11. A book binder has one printing press, one binding machine and
manuscripts of 7 different books. The times required for performing
printing and binding operations for different books are shown below:
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Book 1 2 3 4 5 6 7
Printing
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time 20 90 80 20 120 15 65
(hours)
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Binding 4 Analyze
time 25 60 75 30 90 35 50
(hours)
Decide the optimum sequence of processing of books in order to
minimize the total time required to bring out all the books.

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12. There are seven jobs, each of which has to go through the machines A
and B in the order AB. Processing time in hours are as follows:
Job 1 2 3 4 5 6 7
Machine 4 Analyze
3 12 15 6 10 11 9
A
Machine
8 10 10 6 12 1 3
B
13. A manufacture company processes 6 different jobs on two machines A
and B. Number of units of each job and its processing times on A and B

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are given below. Find the optimal sequence, the total minimum elapsed

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time and idle time for either machine.
Number of Processing Time (in Minutes)

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Job Number Units of Each
Machine A Machine B
Job 5 Evaluate
1 3 ee 5 8
2 4 16 7
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3 2 6 11
4 5 3 5
5 2 9 7.5
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6 3 6 14
14. Give Johnson's procedure for determining an optimal sequence for
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processing n items on two machines. Give justification of the rule used 6 Create
in the procedure.
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PART-C (15 Marks)

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1. Indicate how you will test for optimality of initial feasible solution of
5 Evaluate
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a transportation problem.
2. Is the transportation model an example of decision-making under
5 Evaluate
certainty or under uncertainty? Why?
3. PERT takes care of uncertain durations. How far is this statement
6 Create
correct? Explain with reasons.

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4. The following table gives the activities in a construction project and
also gives other relevant information
Immediate Time (months) Direct Cost (Rs"000)
Activity
Predecessor Normal Crash Normal Crash
A - 4 3 60 90
B - 6 4 150 250
C - 2 1 38 60
D A 5 3 150 250
E C 2 2 100 100

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F A 7 5 115 175 6 Create

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G D,B,E 4 2 100 240
713

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Indirect costs vary as follows:
Mon
15 14 13 12 11 10 9 8 7 6
th ee
Cost 600 500 400 250 175 100 75 50 35 25
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a) Draw an arrow diagram for the project.
b) Determine the project duration that will result in minimum
total project cost.
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UNIT III INVENTORY MODELS
Inventory models – Economic order quantity models – Quantity discount models – Stochastic inventory
models – Multi product models – Inventory control models in practice.
PART-A (2 Marks)
S.No Questions Level Competence
1. Enumerate various types of inventory models. 3 Apply
2. Discuss the various costs involved in an inventory model. 2 Understand
3. Express the disadvantages of increased inventory. 1 Remember
4. Differentiate direct inventory from indirect inventory. 2 Understand

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5. Discuss the impact on lot size if shortages are allowed. 2 Understand

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6. How non-instantaneous receipt model differs from the basic EOQ
5 Evaluate
model.

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7. Discuss in brief: (i) reorder level (ii) reserve stock (iii) lead time. 1 Remember
8. What activities occur during lead time? 5 Evaluate
9. Differentiate between a fixed order quantity system and a fixed
ee 5 Evaluate
interval system.
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10. What is ABC analysis? 2 Understand
11. What are the advantages and limitations of ABC analysis? 3 Apply
12. Summarize the causes of poor inventory control. 3 Apply
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13. Identify when shortage cost and stock out cost arises. 1 Remember
14. Discuss the concept of Quantity Discount Model. 1 Remember
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15. Contrast EOQ and EBQ. 2 Understand

16. Show the economic order quantity graphically. 2 Understand
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17. Elucidate the Monte Carlo Method. 5 Evaluate

18. Define safety stock. 4 Analyze
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19. When the inventory can be increased? Why? 5 Evaluate

20. Highlight the importance of Reorder level. 6 Create
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PART-B (13 Marks)

1. The production department of a company requires 3,600 kg of raw
material for manufacturing a particular item per year. It has been
estimated that the cost of placing an order is Rs.36 and the cost of
3 Apply
carrying inventory is 25 percent of the investment in the inventories.
The price is Rs. 10 per kg. Help the purchase manager to determine
an ordering policy for raw material.
2. A company that operates for 50 weeks in a year is concerned about its 3 Apply

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stocks of copper cable. This costs Rs. 240 a meter and there is a
demand for 8,000 meters a week. Each replenishment costs Rs. 1,050
for administration and Rs. 1,650 for delivery, while holding costs are
estimated at 25 percent of value held a year. Assuming no shortages
are allowed, what is the optimal inventory policy for the company?
How would this analysis differ if the company wanted to maximize
its profits rather than minimize cost? What is the gross profit if the
company sells the cable for Rs. 360 a meter.
3. Each unit of an item costs a company Rs. 40. Annual holding costs
are 18 percent of unit cost of the item due to miscellaneous changes:

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1 percent for insurance, 2 percent allowances for obsolescence,

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Rs. 2 for building overheads, Rs. 1.50 for damage and loss, and Rs. 4
miscellaneous costs. The annual demand for the item is constant at

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1000 units. Placing each order costs the company Rs 100.
a. Calculate EOQ and the costs associated with stocking the
ee 4 Analyze
item.
b. If the supplier of the item will only deliver batches of 250
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units, how are the stock holding costs affected?
c. If the supplier relaxes his order size requirement, but the
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company has limited warehouse space and can stock a

maximum of 100 units at any time, what would be the optimal
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ordering policy and associated costs?

4. A contractor has to supply 10,000 bearings per day to an automobile
manufacturer. He finds that when he starts production run, he can
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produce 25,000 bearings per day. The cost of holding a bearing in 6 Create
stock for a year is Rs. 200 and the set-up cost of a production run is
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Rs. 1800. How frequently should production run be made?

5. A product is sold at the rate of 50 pieces per day and is manufactured
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at a rate of 250 pieces per day. The set-up cost of the machine is
Rs.2000 and the storage cost is found to be Rs. 0.15 per piece per
day. With labour charge of Rs 3.20 per piece, material cost Rs 2.10
4 Analyze
per piece and overhead cost of Rs 4.20 per piece, find the minimum
cost batch size if the interest charge are 8 percent (assume 300
working days in a year). Compute the optimal number of cycles
required in a year for manufacturing of this product.
6. Clearly explain with suitable example the different costs that are
2 Understand
involved in the inventory problems.
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7. A commodity is to be supplied at a constant rate of 200 units per day.
Supplies of any amount can be obtained at any required time, but
each ordering costs Rs 50; cost of holding the commodity in
inventory is Rs 2 per unit per day while the delay in the supply of the
4 Analyze
item induces a penalty of Rs 10 per unit per day. Find the optimal
policy (Q, t), where t is the reorder cycle period and Q is the
inventory after reorder. What would be the best police to adopt if the
penalty cost becomes infinite?
8. A dealer supplies you the following information with regard to
product that he deals in: Annual demand = 10,000 units; Ordering

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cost = Rs 10 per order; Price = Rs 20 per unit; Inventory carrying cost

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= 20 percent of the value of inventory per year. The dealer is
considering the possibility of allowing some backorder (stockout) to

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occur. He has estimated that the annual cost of backordering will be
25 percent of the value of inventory. ee
a. What should be the optimum number of units of the product
4 Analyze
he should buy in one lot?
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b. What quantity of the product should be allowed to be
backordered, if any?
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c. What would be the maximum quantity at any time of the

year?
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d. Would you recommend to allow backordering? if so, what

would be the annual cost saving by adopting the policy of
backordering.
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9. Explain the concept of economic order quantity (EOQ). What are the
1 Remember
basic ideas behind this concept?
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10. The demand for an item in a company is 18,000 units per year, and
the company can produce the item at a rate of 3000 per month. The
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cost of one set-up is Rs 500 and the holding cost of one unit per
month is 15 paise. The shortage cost of one unit is Rs 240 per year. 5 Evaluate
Determine the optimum manufacturing quantity and the number of
shortages. Also determine the manufacturing time and the time
between set-ups.
11. The annual demand of a product is 10,000 units. Each unit costs Rs
100 if the orders are placed in quantities below 200 units. For orders
5 Evaluate
of 200 or above, however, the price is Rs 95. The annual inventory
holding costs is 10 percent of the value of the item and the ordering
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cost is Rs 5 per order. Find the economic lot size.
A factory requires 1500 units of an item per month, each costing Rs
27. The cost per order is Rs 150 and inventory carrying charges work
out to 20 percent of the average inventory. Find the economic order
12. 5 Evaluate
quantity and the number of orders per year. Would you accept a 2
percent discount on a minimum supply quantity of 1200 units?
Compare the total cost in both the cases.
A shopkeeper estimates the annual requirement of an item as 2,000
units. He buys it from his supplier at a cost of Rs. 10 per item and the
cost of ordering is Rs 50 each time he orders. If the stockholding

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costs are 25 percent per year of stock value, how frequently should he

g.i
13. 5 Evaluate
replenish his stocks? Further, suppose the supplier offers a 10 percent
discount on orders between 400 and 699 items, and a 20 percent

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discount on orders exceeding or equal to 700. Can the shopkeeper
reduce his costs by taking advantage of either of these discounts?
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A manufacturing company requires a component at the annual
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average rate of 1000 units. Placing an order costs Rs 480 and has a 5-
day lead time. Inventory holding cost is estimated at Rs 15 per
14. unit/year. The plant operates 250 days/year. It is assumed that the 5 Evaluate
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daily demand is normally distributed with an average of 4 units, and

with a standard deviation of 1.2 units. Suggest an inventory policy to
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control the inventory of the item based on a 95 percent service level.

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PART-C (15 Marks)

Why should the order size, in case of gradual receipt of goods, be

1. 6 Create
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larger than the one in case of instantaneous receipt?

Control of inventory (stock) is an important aspect of management.
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You are required discuss:

2. a. the purpose of inventory and 5 Evaluate
b. method to ensure that the optimal investment is made in this
asset.
In deterministic lot size models, what additional cost factor must be
3. considered when price breaks are involved, as compared to those 5 Evaluate
models where there are no price breaks? Explain.
A manufacture has to supply his customers with 600 units of his
4. 6 Create
product per year. Shortages are not allowed and storage amounts to

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60 paise per unit per year. The set-up cost per run is Rs 80. Find
a. economic order quantity
b. minimum average yearly cost
c. optimum number of orders per year
d. optimum period of supply per optimum order
e. increase in the total cost associated with ordering (i) 20
percent more and (ii) 40 percent less than EOQ.

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UNIT IV QUEUEING MODELS
Queueing models - Queueing systems and structures – Notation parameter – Single server and multi
server models – Poisson input – Exponential service – Constant rate service – Infinite population –
Simulation.
Part-A (2 Marks)
S.No Questions Level Competence
1 Clarify, in brief, the main characteristics of the 'queuing system'. 3 Apply
2 What do you understand by (i) Queue discipline, (ii) arrival process
1 Remember
(iii) service process?

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3 What is traffic intensity? 1 Remember

g.i
4 Define Kendal's notation for representing queuing models. 2 Understand
5 Identify the properties of Poisson process. 2 Understand

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6 Distinguish between Serial and Parallel queue with examples. 5 Evaluate
7 Define a waiting line ee 4 Analyze

8 Give a brief description of the various types of queues. 5 Evaluate

gin
9 How would you explain consumer behaviour? 5 Evaluate
10 What are the assumptions in m/m/1 model? 2 Understand
En

Give the formula for the problem for a customer to wait in the
11 1 Remember
system under (m/m/1: N/FCFS).
arn

12 Classify the service disciplines. 2 Understand

13 List out the basic elements of queue 2 Understand
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14 Distinguish between transient and steady state queuing system 5 Evaluate

15 Differentiate single channel queue and multi-channel queue. 1 Remember
w.

16 Interpret the terms arrival rate and service rate in queuing models. 5 Evaluate
17 Give the formulae for expected number of customers in the queue
ww

5 Evaluate
and the system for (M/M/1): (FCFS/∞/∞).

18 Write down the postulates of birth and death process? 4 Analyze

19 Categorize Queue Discipline. 5 Evaluate
20 Describe Kendall’s Notation for identifying a Queue Model with two
channels, Poisson arrivals, exponential service and infinite calling 6 Create
population.

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PART-B (13 Marks)
A television repairman finds that the time spent on his jobs has an
1. exponential distribution with a mean of 30 minutes. If he repairs the
sets in the order in which they came in and if the arrival of sets
follows a Poisson distribution with an approximate average rate of 10 3 Apply
per 8-hour day, what is the repairman's expected idle time each day?
How many jobs are ahead of the average set just brought in?

In a railway marshalling yard, goods trains arrive at a rate of 30 trains

2.
per day. Assuming that the interarrival time follows an exponential

n
distribution and the service time (the time taken to hump a train)

g.i
distribution is also exponential with an average of 36 minutes.
Calculate: 3 Apply

rin
a. expected queue size (line length)
b. probability that the queue size exceeds 10
ee
If the input f trains increases to an average of 33 per day, what will be
the change in (a) and (b)?
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3. Arrivals at telephone booth are considered to be Poisson with an
average time of 10 minutes between one arrival and the next. The
En

length of phone calls is assumed to be distributed exponentially, with

a mean of 3 minutes.
arn

a. What is the probability that a person arriving at the booth will

have to wait?

b. The telephone department will install a second booth when

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3 Apply
convinced that an arrival would expect waiting for at least 3
minutes for a phone call. By how much should the flow of
w.

arrivals increase in order justify a second booth?

ww

c. What is the average length of the queue that forms from time to
time?

d. What is the probability that it will take a customer more than 10

minutes altogether to wait for the phone and complete his call?
4. A road transport company has one reservation clerk on duty at a time.
He handles information of bus schedules and makes reservations.
Customers arrive at a rate of 8 per hour and the clerk can on an
4 Analyze
average, service 12 customers per hour. After stating your
assumptions, answer the following:

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a. what is the average number of customers waiting for the service
of the clerk?

b. what is the average time customer has to wait before being

served?

c. The management is contemplating to install a computer system

for handling information and reservations. This is expected to
reduce the service time from 5 to 3 minutes. The additional
cost of having the new system works out to Rs 50 per day. If
the cost of goodwill of having to wait is estimated to be 12

n
paise per minute spent waiting, before being served, should be

g.i
company install the computer system? Assume an 8 hours
working day.

rin
5. Discuss the fields of application for queuing theory. Explain queue
1 Remember
discipline and its various forms. ee
6. Explain the basic queuing process. What are the important random
2 Understand
gin
variates in queuing system to be investigated?

7. Discuss the essential features of queuing system. What are the

important random variates in a queuing system to be studied? 2 Understand
En

8. Consider a single server queuing system with Poisson input and

exponential service times. Suppose the mean arrival rate is 3 calling
arn

units per hour, the expected service time is 0.25 hour and the
4 Analyze
maximum permissible calling units in the system is two. Derive the
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steady-state probability distribution of the number of calling units in

the system and then calculate the expected number in the system.
w.

9. A super market has two sales girls at the sales counters. If the service
time for each customer is exponential with a mean of 4 minutes, and
ww

if the people arrive in a Poisson fashion at the rate of 10 an hour, then

calculate the:
3 Apply
a. probability that a customer has to wait for being served?
b. expected percentage of idle time for each sales girl?
c. if a customer has to wait, what is the expected length of his
waiting time?
10. A bank has two tellers working on the savings accounts. The first
teller only handles withdrawals. The second teller only handles 4 Analyze
deposits. It has been found that the service time distribution for the

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deposits and withdrawals, both, are exponential with mean service
time 3 minutes per customer. Depositors are found to arrive in a
Poisson fashion throughout the day with a mean arrival rate of 16 per
hour. Withdrawers also arrive in a Poisson fashion with a mean
arrival rate of 14 per hour. What would be the effect on the average
waiting time for depositors and withdrawers if each teller could
handle both the withdrawals and deposits. What would be the effect if
this could only be accomplished by increasing the service time to 3.5
minutes?
11. A tax consulting firm has 4 service counters in its office for receiving

n
people who have problems and complaints about their income, wealth

g.i
and sales taxes. Arrivals average 80 persons in an 8-hours service day.
Each tax adviser spends an irregular amount of time servicing the

rin
arrivals, which have been found to have an exponential distribution.
The average service time is 20 minutes. Calculate the average number
ee 5 Evaluate
of customers in the system, average number of customers waiting to
be serviced, average time a customer spends in the system, and
gin
average waiting time for a customer. Calculate how many hours each
week does a tax adviser spend performing his job. What is the
En

probability that a customer has to wait before he gets service? What is

the expected number of idle tax advisers at any specified time?
arn

12. An airport emergency medical facility has a single paramedic and

room for a total of three patients, including the one being treated.
Patients arrive with an exponentially distributed inter arrival time with
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a mean of one hour. Service time is exponentially distribute with a

mean of 30 minutes.
w.

5 Evaluate
a. What percentage of the time is the paramedic busy?
b. How many patients on average are refused entry in a 24 hour
ww

day?
c. What is the average number of patients in the facility at any
given time?
13. In a reservation counter with a single server, customer arrive with the
inter-arrival time as the exponential distribution with mean 10
minutes. The service time is also assumed to be exponential with
mean 8 minutes. Find 5 Evaluate
a. the idle time of the server
b. the average length of the Queue.
c. Expected time that a customer spends in the system.

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14. A self-service store employs one cashier at its counter. 9 Customers
arrive on an average every 5 minutes. While the cashier can serve 10
customer in 5 minutes. Assuming Poisson Distribution for arrival rate
and exponential distribution for service rate Find the following:
4 Analyze
a. Average number of customer in the system
b. Average Number of customer in Queue.
c. Average time a customer spend in the system
d. Average time a customer wait before being Served.

PART – C (15 Marks)

n
g.i
1. Give two examples to illustrate the applications of queuing theory in
4 Analyze
business and industry.

rin
2. Queuing theory can be used effectively in determining optimal
6 Create
service levels. Elucidate this statement with help of an example.
3. ee
In what kind of situation can queuing theory be applied successfully?
6 Create
Give appropriate examples
gin
4. What are some of the operating characteristics of queuing system?
5 Evaluate
How can they be used in the evaluation or design system?
En
arn
Le
w.
ww

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UNIT V DECISION MODELS

Decision models – Game theory – Two person zero sum games – Graphical solution- Algebraic
solution– Linear Programming solution – Replacement models – Models based on service life –
Economic life– Single / Multi variable search technique – Dynamic Programming – Simple Problem.
Part-A (2 Marks)
S. No Questions Level Competence
1. Indicate the difference between expected opportunity loss and
2 Understand
expected value of perfect information.

n
g.i
2. Briefly explain 'expected value of perfect information' with
1 Remember
examples.

rin
3. Which technique results in a pessimistic decision?
1 Remember
4. What techniques are used to solve decision-making problems
ee 2 Understand
under uncertainty?

5. Which technique results in an optimistic decision? 2 Understand

gin
6. Interpret the concept of two person zero sum game. 5 Evaluate
7. Define competitive game.
1 Remember
En

8. Identify the basic assumptions of the Game.

5 Evaluate
9. Define 'saddle point'.
arn

5 Evaluate
10. Elucidate the difference between our strategy and mixed strategy. 2 Understand
11. What are the assumptions made in the theory of game? 3 Apply
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12. Summarize how graphs and LP solution are used in Game theory. 3 Apply
Compare competitive game and rectangular game.
w.

13. 1 Remember
14. Define group replacement. Give example. 1 Remember
ww

15. Give the applications of dynamic programming. 2 Understand

16. Compare single and multi-variable search techniques.
2 Understand

17. Classify the types of Replacement model. 2 Understand

18. How is the concept of dominance used in simplifying the solution
4 Analyze
of a rectangular game?
19. Briefly explain principle of dominance. 5 Evaluate
20. Briefly explain pure strategy in game theory. 6 Create

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S. No. Questions Level Competence

1. A food products' company is contemplating the introduction of a
revolutionary new product with new packaging or replacing the
existing product at much higher price (S1). It may even make a
moderate change in the composition of the existing product, with a
new packaging at a small increase in price (S2), or may mall a small
change in the composition of the existing product, backing it with the
word 'New" and a negligible increase in price (S3). Three possible
states of nature or events are (i) high increase in sales (N1), (ii) no

n
change in sales (N2) and (iii) decrease in sales (N3). The marketing

g.i
department of the company worked out the payoffs in terms of yearly
net profits for each of the strategies of three events (expected sales).

rin
This is represented in the following table. 3 Apply

States of Nature
ee
Strategies N1 N2 N3
gin
S1 7,00,000 3,00,000 1,50,000

S2 5,00,000 4,50,000 0
En

S3 3,00,000 3,00,000 3,00,000

arn

Which strategy should the concerned executive choose on the basis

of (a) Maximin criterion (b) Maximax criterion (c) Minimax regret
criterion (d) Laplace criterion?
Le

A manufacturer manufactures a product, of which the principal

2.
w.

ingredient is a chemical X. At the moment, the manufacture spends

Rs 1000 per year on supply of X, but there is a possibility that the
ww

price may soon increase to four times its present figure because of a
worldwide shortage of the chemical. There is another chemical Y,
which the manufacture could use in conjunction with a third
3 Apply
chemical Z, in order to give the same effect as chemical X. Chemical
Y and Z would together cost the manufacture Rs 3000 per year, but
their price are unlikely to rise. What action should the manufacture
take? Apply the maximin and minimax criteria for decision-making
and give two sets of solutions. If the coefficient of optimism is 0.4,
then find the course of action that minimizes the cost.

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An investor is given the following investment alternatives and
3. percentage rates of return.

States of Nature (Market Conditions)

Low Medium High

Regular 7% 10% 15%

shares
4 Analyze
Risky shares -10% 12% 25%

Property -12% 18% 30%

n
Over the past 300 days, 150 days have been medium market

g.i
conditions and 60 days have had high market increases. On the
basis of these data, state the optimum investment strategy for the

rin
investment.
4. Discuss the difference between decision-making under certainty,
under uncertainly and under risk.
ee 1 Remember

Explain the various quantitative methods that are useful for

gin
5.
decision-making under uncertainty. 2 Understand

The manager of a flower shop promises its customers delivery

En

6.
within four hours on all flower orders. All flowers are purchased
on the previous day and delivered to parker by 8.00 am the next
arn

morning. the daily demand for roses is as follows.

Dozens of 70 80 90 100
roses
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4 Analyze
Probability 0.1 0.2 0.4 0.3
w.

The manager purchase roses for Rs 10 per dozen and sells them for
Rs 30. All unsold roses are donated to local hospital. How many
ww

dozens of roses should Parker order each evening to maximize its

profits? What is the optimum expected profit?
7. A retailer purchases cherries every morning at Rs 50 a case and
sells them for Rs 80 a case. Any case that remains unsold at the end
of the day can be disposed of the next day at a salvage value of Rs
3 Apply
20 per case (thereafter they have no value). Past sales have ranged
from 15 to 18 cases per day. The following is the record of sales for
the past 120 days.

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Find out how many cases should the retailer purchase per day in
order to maximize his profit.
8. The probability of demand for hiring cars on any day in a given city

n
is as follows:

g.i
No. of cars 0 1 2 3 4
demanded

rin
Probability 0.1 0.2 0.3 0.2 0.2
4 Analyze
Cars have a fixed cost of Rs 90 each day to keep the daily hire
ee
charges (variable costs of running) Rs 200. If the car-hire company
gin
owns 4 cars, what is its daily expectation? If the company is about
to go into business and currently has no car, how many cars should
it buy?
En

9. For the game with payoff matrix:

Player B
arn

Player A B1 B2 B3
A1 -1 2 -2
3 Apply
A2 6 4 -6
Le

Determine the optimal strategies for players A and B. Also

determine the value of game. Is this game (i) fair? (ii) strictly
w.

determinable?
10. Explain: Minimax and Maximin principle uses in the theory of
ww

2 Understand
games.
11. In a game of matching coins with two players, suppose A wins one
unit of value when there are two heads, wins nothing when there are
two tails and losses 1/2 unit of value when there is one head and one 4 Analyze
tail. Determine the payoff matrix, the best strategies for each player
and the value of the game to A.
12. Two firms A and B make colour and black & white television sets.
Firm A can make either 150 colour sets in a week or an equal
number of black & white sets, and make a profit of Rs 400 per 3 Apply
colour set, or 150 colour and 150 black & white sets,For
orMore
300 black
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sets as A. Each week there is a market of 150 colour sets and 300
black & white sets and the manufactures would share market in the
proportion in which they manufacture a particular type of set. Write
the pay-off matrix A per week. Obtain graphically A's and B's
optimum strategies and value of the game.
13. For the following payoff matrix, transform the zero-sum game into
an equivalent linear programming problem and solve it by using the
simplex method.
Player B
Player A B1 B2 B3 5 Evaluate

n
A1 1 -1 3

g.i
A2 3 5 -3

rin
A3 6 2 -2

14. Use dynamic programming to solve the following problem

ee
Minimize Z= y12+y22+y32 subject to the constraint
5 Evaluate
y1+y2+y3 = 10
gin
y1, y2, y3 ≥0
En

PART – C (15 MARKS)

arn

1. Give an example of a good decision that you made, which

resulted in a bad outcome. Also give an example of a good
5 Evaluate
decision that you made and that had a good outcome. Why was
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each decision good or bad?

2. What is a scientific decision-making process? Discuss the role of
w.

6 Create
the statistical method in such a process.
3. In which areas of an organization can dynamic programming be
ww

5 Evaluate
applied successfully? Discuss.
4. Explain the recursive nature of computations in dynamic
6 Create
programming.

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