Master of Commerce 2th Semester

Paper-M.C.-205 : Operations Research

(Same for USOL Candidates)
Time : Three Hours Maximum Marks :80
Note. Attempt any five questions selecting at least one question from each Unit. All questions carry equal
marks.
UNIT-I
1. What is the role of Operations Research in decision making? Discuss various applications of
Operations Research.
2. (a) A retailer deals in two items only, item A and item B. He has 50,000 rupees to invest and a space
to store at the most 60 pieces. Item A costs him Rs. 2,500 and B costs Rs. 500. A net profit to him
in item A is Rs. 500, and item B is Rs. 150. If he can sell all the items no purchases, how should
be invest his amount to have maximum profit ? Formulate the LPP and solve the problem using
graphical method :
(b) Solve the following LPP by using Dual Simplex Method:
Minimize
Subject to -

and
3. (a) Solve the following LPP by using Dual Simplex Method:
Minimize
Subject to -
o m
(b)
and
.r c
Solve the following LPP by Big-M Method:
Maximize Z=-2 -
Subject to the constraints
p e m
3 + =3
a o
.r c
4 –3
+2
r p
4.
And ,
b
Solve the following assignment problem:
UNIT-II

p e
a
Machines

p
11
9
13 br
17
7
16
8
12
15
16
6
12
20
15
16
21 24 17 28 26
14 19 12 11 13
5. (a) Find an optimal solution to the following transportation problem:
Sources Supply Destination
x y Z
A 2 7 4 50
B 7 3 7 70
C 5 4 1 80
D 1 6 2 140
Demand 70 90 180 340
(b) Suggest optimum solution to the following assignment problem and also the maximum sales :
Salesman Markets (Sales in Lakhs Rupees)
I II III IV
 A 44 80 52 60
B 60 56 40 72
C 36 60 48 48
D 52 76 36 40
UNIT-III
6 The following failure rates have been observed for a certain type of light bulbs :
End of Weak 1 2 3 4 5 6 7
Probability of failure .05 .13 .25 .43 .68 .88 .96
The cost of replacing an individual failed bulb is Rs. 12.50. The cost of group replacement is Rs.
3.00 per bulb. Determine whether individual replacement or replacement or group replacement is
best suited for this situation.
7. The following table represents a set of activity times for a PERT network:
Activity A B C D E F G H I J K
6 1 1 1 1 1 2 4 4 2 2
7 2 4 2 2 5 2 4 4 5 2
8 9 7 3 3 9 8 4 10 14 8
Predecessors - - - A A C C E,F E,F D,H I,G

Draw the network and determine the critical path, expected time on completing the project.
Determine the probability that the project will be completed within 25 weeks.
8. In the following network if all the activity timings are of two minutes, calculate the total project
duration and the critical path using EST, EFT

o m
.r c
p e m
a o
r p .r c
b p e
p a
9. (a) br
UNIT-IV
Two players 'A' and 'B' throw 2 coins on a table. ‘A’ wins 8 when both coins show head and 1
when both are tail. 'B' wins 3 when coins does not match. Prepare the payoff matrix and
determine optimal strategies for each player.
(b) With reference to Game Theory define the following, with an example:
(i) Pure strategy
(ii) Mixed strategy
(iii) Saddle point
(iv) Payoff matrix
(v) Two-person-zero-sum-game.
10. (a) What is Simulation? What are the advantages, uses and limitations of simulation to a business
manager ?
(b) The cost of machine is Rs. 6,000 and its scrap value is Rs. 100. The maintenance cost from
experience is as follows:
Year 1 2 3 4 5 6 7 8
Maintenance 1 250 400 600 900 1200 1600 1800
When should the machine be replaced ?

o m
.r c
p e m
a o
r p .r c
b p e
p a
br