SET B

Unique Paper Code : 61011503

Name of the Paper : Quantitative Techniques in Management

Name of the Course : Bachelor of Management Studies (CBCS)

Semester :V

Duration : 3 hours

Maximum Marks : 75

Instructions to Candidates:

(i)All Questions carry equal marks.

(ii) The Question paper contains 6 Questions.

(iii)Attempt any 4 Questions in all.

(iv) Use of Simple Calculator is allowed.

Q 1A manufacturer makes three models of storage bins: small, medium and large. Processing
of these storage bins is done on three machines: M1, M2 and M3. The small model requires 4
hours on M1, 8 hours on M2, and 6 hours on M3. The medium model requires 6 hours on M1,
6 hours on M2, and 4 hours on M3 while the model large requires 4 hours on M1, 2 hours on
M2, and 8 hours on M3. There are 240 machine hours per month available on M1, 320
machine hours per month available on M2, 200 machine hours per month available on M3.
The per unit profit gained from small model is Rs 80, from medium model is Rs 70 and from
large model is Rs 60. Formulate the given problem as an LPP and solve it using the simplex
method. What should be the monthly production of each type of storage bin in order to
maximise profit? Determine the optimal amount of profit. Identify if there will be unused
capacity on any machine? Also, formulate the dual of the above LPP.

Q 2There are two companies A and B in a certain city. Both firms have the same reputation
and enjoy equal market share. Both companies want to attract greater number of customers
by using innovative media strategies. Company A has constructed the following matrix of
increase in sales(in ₹ Lakh) for various strategy combinations of the two companies:

Strategies for B

Strategies for A B1 B2 B3 B4

A1 3 -1 6 7

A2 -1 8 15 12

A3 16 13 14 10

A4 1 11 2 1

Assuming a zero-sum game, determine the optimal strategy of the two companies and value
of the game.

Q 3A market survey is made on three brands of breakfast foods X, Y and Z. Every time the
customer purchases a new package, he may buy the same brand or switch to another brand.
The following transition matrix for brand switching has been obtained:

Next period brand

X Y Z

Present X 0.80 0.15 0.05

brand
Y 0.12 0.75 0.13

Z 0.10 0.12 0.78

At present it is estimated that 30 per cent of the people buy brand X, 20 per cent buy brand Y
and 50 per cent buy brand Z. Find the market share of the three brands at the end of two
periods. Compute the probability of a customer purchasing brand X at present buying brand Z
at the end of period 3. Also, find the long-run market share of the three brands.

Q 4 Given below is the simplex table for a linear programming problem, use the information
to answer the questions that follow:

Cj→ 6 3 0 0 0

Cj Basic X1 X2 S1 S2 S3 bi
Variable

6 X1 1 ½ 1/2 0 0 4

0 S2 0 -1/2 -3/2 1 0 6

0 S3 0 1 0 0 1 3

Is the given solution optimal? Give reason for your answer. State the optimal solution and the
shadow price of the resources. Is there more than one optimal solution? If yes, find the
alternate solution.

What is the range within which the objective function coefficient of the decision variable X1
can vary? Also, determine the change in solution when the objective function coefficient for
X2changes to 5 in the given simplex table.

Q 5 A civil engineering firm has secured a contract to construct a dam. It has identified the
following tasks which have to be completed for the completion of the project along with their
respective duration:

Activity A B C D E F G H I J

Precedence - - - B A C E, F D, F G, H I

Duration Shortest 3 8 4 2 1 7 5 6 8 9

(in months) Longest 17 18 12 12 7 11 5 12 18 21

Most likely 7 10 5 4 4 9 5 9 13 15

Draw the network diagram and determine the critical path.Estimate the expected duration and
variance of the project.

Find the probability that the project will be completed after55 months. If the project manager
wants to be 90% sure that the project should be completed in time, how many months prior to
the deadline should he start it? Also calculate the chance of completing the project between
45 and 50 months?

Q 6 An event management company is booking four groups, each of which would give one
singing performance in a particular city. Because of the local preferences of the people, the
company is expecting that different groups will attract different audience size. Five major
cities are under consideration of the company for organizing the singing performances. The
estimate of sale of tickets is given as follows:

Group City

(Estimated sale of tickets in ₹ ‘000)

Pune Bhopal Kalimpong Dehradun Shimla

Symphony 58 56 21 50 45

Opus 16 34 18 25 15

Sonata 39 44 30 64 36

Concerto 82 102 71 110 73

Considering the sale of tickets that is likely to be made, what group – city combination would
you suggest in order to maximise revenue? What will be the maximum revenue that can be
earned? Which city will not host any singing performance? If for certain reason, the group
Sonata cannot perform in Shimla, will the optimal assignment schedule change? Give reason
for your answer.