Give any four definitions of OR. Ans. Operation Research: 1.

OR is an aid for the executive in making decisions by providing him with the quantitative information, based on the scientific method analysis. 2. OR is the art of giving bad answers to problems, to which, otherwise worse answers are given. 3. OR is the art of wining wars without actually fighting them. 4. OR is the application of scientific methods by interdisciplinary teams to problems involving the control of organised (man-machine) systems so as to provide solutions which best serve the purpose of the organisation as a whole. Comment the following statement. (i) OR is the art of wining war without actually fighting it. (ii) OR is the art of finding bad answer where worse exists. Ans. (i) An art of wining war without actually fighting it-During world war-TI, the military management in U K and U S A engaged mterdisciplmary teams of scientists to study the strategic and tactical problems of military operations. The objective was to find out the most effective allocation of limited military resources to the various military operations. The OR teams were not actually engaged in military operations and in fighting the war. But they were only advisors and significantly instrumental in wining the war. Hence OR can be associated with an art of wining war without actually fighting it. (ii) An art of finding bad answer where worst existFor the use of techniques of OR, a mathematical model of the problem is to be formulated This model is actually a simplified representation of the problems in which only the most important features are considered for reason of simplicity. Then an optimal or most favourable solution is found. Since the model is an idealized in- stead of exact representation of real problem, the optimal solution thus obtained may not prove to be the best solution to the actual problem. Although, we may not get the best answers but definitely we are able to find the bad answer where worst exist. Thus operation research techniques are always able to save us from worse situation of practical life. What is an OR Model? What are the characteristics of OR Model? Ans. A model is defined as idealized representation of the real life situation. It represents one or few aspects of reality. Characteristics of OR 1. The number of simplifying assumption should be as few as possible. 2. Model should be simple but close to reality. 3. It should be adaptable to parametric type of treatment. 4. It should be easy and economical to construct. Give the main advantage and limitation of OR model. Ans. Advantage 1 It provides a logical and systematic approach to the problem. 2. It indicates the scope .as well as limitation of a problem.

3. It makes the overall structure of the problem more comprehensible and helps in dealing with problem in its entirety. LimitationsModels are only idealised representation Of reality and should not be regarded as absolute in any case.The validity of a model for a particular situation can be ascertained only by conducting experiments on it. Distinguish between: (i) Iconic or Physical Model and Analogue or schematic model. (ii) Deterministic and Probabilistic model. Ans. (i) Iconic ModelIt represent the system by enlarging or reducing the size on some scale. In other words it is an image. Example-toy airplane, photographs, drawings, maps etc. Schematic ModelThe models, in which one set of properties is used to represent, another set of properties are called schematic or analogue models. For example-graphs used to show different quantities. (ii) Deterministic modelSuch models assume conditions of complete certainty and perfect knowledge. Example- LPP, transportation, assignment etc. Probabilistic (or stochastic) ModelThese type of models usually handle such situation in which the consequences or payoff of managerial actions cannot be predicted with certainty. However it is possible to forecast a pattern of events, based on which managerial decision can be made. For example insurance companies are willing to insure against risk of fire, accident, sickness and so on. Here the patterns of events have been compiled in the form of probability distribution. What is the objective of operation Research? Ans. The objective of OR is to provide a scientific basis to the managers of an organisation for solving problems involving interaction of the components of the system, by employing a system approach by a team of scientists drawn from different disciplines, for finding a solution which is in the best interest of the organisation as a whole. List the characteristics of operation research. Ans. 1. System Orientation 2. Use of interdisciplinary teams 3. Application of Scientific methods 4. Uncovering of new problems 5. Improvement in the quality of decisions 6. Use of computer 7. Quantitative solutions 8. Human factors Write a short note on Heuristic Programming? Ans. Heuristic programming uses rules of thumb or intuitive rule to find the problem solution. Thus checking all the alternatives so as to obtain the optimum one, is not required. They bridge the gap between strictly analytical formulation and operating principles which manager are habitual to use. They involve step by step search towards the optimal solution when a problem cannot be expressed in mathematical programming form. It does not provide optimum solution but very near to it. What are the various phases of operation research problems? Explain the methodology of operation research Explain the steps involved in the solution of OR Problem. Ans. Operation research is based on scientific methodology which proceeds as: OR Or

1. Formulating the problem. 2 Constructing a model to represent the system under study 3. Deriving a solution from the model. 4. Testing the model and the solution derivq4 from it. 5. Establishing controls over the solution. 6. Putting the solution to work i.e. implementation. (i) Assignment of job to machine (ii) Product mix (iii) Advertising media selection (iv) Transportation. 2. Dynamic programming (i) Capital budgeting (ii) Employment smoothening (iii) Cargo loading. 3. Inventory control (i) Economic order quantity What is the importance of OR in decision making? Ans. 1. Better control 2. Better coordination 3. Better system 4. Better decision Explain briefly the applications of operation research. Explain the scope of operation research. What are the areas of applications of OR. Ans. ApplicationsOperation research at present finds extensive application in industry, business, government, military and agriculture. Wide variety of. Industries namely airlines, automobile, transportation, petroleum, coal, chemical, mining, paper, communication, computer, electronics etc. have made extensive use of OR techniques. Applications of Various OR Techniques: 1. Linear programming (ii) Safety stocks (iii) Reorder level, 4. Queuing theory (i) Traffic congestion (ii) Repair and maintenance of broken down rn/c. (iii) Hospital operations etc. 5. Network techniques (i) Planning, scheduling and controlling of construction of dams, bridges, roads, highways etc. 6Replacement theory (i) Optimum replacement interval of items. (ii) Staff replacement and recruitment. Scope and areas of applications: 1. Agriculture 2. Finance 3. Industry 4. Marketing 5. Personal Management 6. Production Management 7. L.I.C. schemes 8. Research and Development 9. Allocation and Distribution Or Or

What are the limitations of using results from a mathematical model to make decisions about operations. Or What are the limitations of operation research? Ans. 1. Mathematical models, do not take into account qualitative factors or emotional factors which are quite real. All influencing factors which cannot be quantified find no place in mathematical models. 2 Mathematical models are applicable to only specific categories of problems 3. Present day problems involve numerous factors; expressing them in quantity and establishing relations among them require huge calculation 4. Management, who has to implement the advised proposals, may itself offer a lot of resistance due to conventional thinking What are the advantages of using results from the mathematical model to make decision about operations? Ans. The mathematical models provides the management a quantitative basis for decision making. For example it will give answer like, The cast to the company, if decision A is taken is X, if decision B is taken is Y, etc Hence it improve the quality of decision making. It provide a way to represent the reality in the mathematical from. It highlights the bottlenecks in production system. Define LPP. Ans. A problem consists of a linear function of variable called objective function subject to set of linear equation or inequalities called constraints are known as linear programming problem. Why LP models are called deterministic in nature. Ans. (i) In LP model the various parameters namely the objective function coefficients, R.H.S, coefficients of the constraints and resource values are certainly known and their value do not change with time. Thus the profit or cost per unit of product, availability of labour and material, market demand is known with certainty. Thats why it is called deterministic in nature. . What are the assumptions of Linear programming Models? Ans. 1. Proportionality 2. Additivity 3. Continuity 4. Certainty. Q. 2.4. Enumerate few application of linear programming. Ans. Industrial Applications 1. Product Mix problem 2. Blending problem 3. Production Scheduling problem 4. Trim loss problem 5. Sub contract problem. Management Problems 1. Media selection problem 2. Transportation problem 3. Assignment problem 4. Man power scheduling problem Agricultural Applications

Military Applications. What are the advantages and limitations of linear programming methods? Ans. Advantages 1. It helps in attaining the optimum use of productive factors. 2. It improves the quality of decisions. The individual who makes use of linear programming methods becomes more objective than subjective. 3. It also helps in providing better tools for adjustment to meet changing conditions. 4. It highlights the bottlenecks in the production processes. 5. Most business problems involve constraints like raw materials availability, market demand etc. which must be taken into consideration. Just we can produce so many units of product does not mean that they can be sold. Linear programming can handle such situation also. Limitations 1. In some problems objective functions and constraints are not linear. LPP under non linear condition usually results in an incorrect soIution 2. LPP deals with problems that have a single objective. Real life problem may involve multiple objectives. 3. Parameters appearing in the model are assumed to be constant. But in real life situation they are neither constant nor deterministic. 4. It is applicable to only static situations since it does not take into account the effect of time. 5. LPP can not be used efficiently for large scale problems, the computational difficulties are enormous, even when the large digital computer is available. 6. LPP may get fractional valued answers for the decision variables, whereas it may happen that only integer values of the variable are logical. . Define: (i) Solution to LPP (ii) Feasible solution (iii) Basic solution (iv) Basic feasible solution (v) Optimum basic feasible solution (vi) Unbounded Solution. Ans. (i) Solution to LPP- A set of variable *x1x2,....x,J is called a solution to LI? if it satisfy the given constraints (ii) Feasible solutionA set of variable is called a feasible solution to LPP if it satisfy the given constraints as well as non negativity restrictions (iii) Basic solution-A solution obtained by setting any n variables equal to zero and solving for remaining m variables is called basic solution (iv) Basic feasible solution-It is a basic solution that also satisfies the non negativity restrictions. (v) Optimum basic feasible solutionIt is the basic feasible solution that also optimize the objective function. (vi) Unbounded solution-If the value of the objective function can be increased or decreased indefinitely the solution is called unbounded solution

What is redundant constraint? Ans A constraint, which does not affect the solution space, is known as redundant Constraint Name three basic parts of simplex techniques. Ans. 1 . Basis 2. Body matrix 3 Identity matrix Distinguish between slack, surplus and artificial variable Ans SlackThe positive variable, which is added to the left hand side of the constraint to convert it into equation, is called the slack variable Surplus-The positive variable, which is subtracted from the left hand side of the constraint to convert it into equation, is called the surplus variable. Artificial VariableLPP in which one or more constraints are of or = type (after ensuring that all all bs are non negative)in such cases we introduce another type of variable known as artificial variables in order to get the initial basic feasible solution. What is the physical meaning of artificial variable? Ans These variables are fictitious and have no physical meaning They are merely a device to get the starting basic feasible solution so that simplex algorithm may be applied. These variables are required because in such problems the basic matrix is not obtained as identity matrix in the starting simplex table. Define pivot element. (Or key element). Ans. It is intersection element of key column and key row. While finding the solution by simplex method, when does the problem have infinite optimal solution, unbounded solution and infeasible solution? Ans. Infinite optimal solution-If a non basic variable have zero coefficient in the C-.Z row there exist an infinite optimal solution. Unbounded solution-An unbounded solution occurred when it is not possible to determine the basic variable that should leave the basis This happens when there is no minimum non negative replacement ratio. Infeasible solution-When optimality condition is satisfied and artificial variable is present at some positive level The problem does not have any feasible solution Distinguish between the Big M and two phase method. Ans. 1. The big M method solves the problem in one pass, whereas the two phase method solve it in two stages. 2. The big M method is computationally inconvenient due to existence of the large number M The two phase method does not involve M during computation 3. The big M method presents a difficulty when the problem is solved on digital computer, but there is no such type of problem in two phase method. Give outlines of a simplex method in linear programming Ans. 1. Express the problem in standard form. 2. Find initial basic feasible solution.

3. Construct the starting simplex table which consists of basis, body matrix, identity matrix and quantity column 4. Perform optimality test. (z) Compute Z (=cB a7) elements for variable column (ii) Find index row C-.Z It may be resolved by perturbation method. (iii) (Minimization Problem) if all the elements of CZ row are non negative then optimahty condition is satisfied (Maximization problem) If all the elements of CZ row are zero or negative then optimahty condition is satisfied 5. Iteration towards an optimal solution. (z) Selecting of the entering variable (ii) Selecting of outgoing variable (iii) Preparing the new simplex table. 6. Repeat step 4 and 5 till the optimal solution is obtained. What do you understand by degeneracy? Ans Degeneracy linear programming is said to occur when one or more basic Lables have zero value. It may occur at initial stage or at subsequent iteration stage. Define basic and non basic variables. Ans. Basicvariable under the basic column are known as basic variable. Non Basicvariables not entered under basic column are known as non basic variable. What do you mean by shadow prices? Ans. The elements in C-Z row (index row) under slack variable columns are known as shadow prices or imputed values of the resources.

Transportation, Assignment and Sequencing Problem State transportation problem. Is this a special class of LPP? When does it a unique solution? Ans. The transportation problem is to transport various amount of single object that are initially stored at various origins, to different destinations in such a way that the total transportation cost is minimum. Yes it is a special class of LPP and may be solved by simplex method. Transportation problem always posses a feasible solution. It has a unique solution when cell evaluation matrix has only positive values. Write mathematical model for general transportation problem as LPP. Ans. Mathematical formulation Suppose that there are m sources and n destinations. Let a1be the number of supply units available at source i (i =1, 2, 3 m) and let b1 be the number of demand units required at destination j (f = 1, 2, 3 n).

Let C, represent the unit transportation cost for transporting the units from source i to destination j. The objective is to determine the number of units to be transported from source i to destination j. So that total transportation cost is minimum.

List the various methods that can be used for obtaining an initial basic solution for transportation problem. Ans. 1. North West corner method 2. Row minimum method 3. Column minimum method 4. Least cost method 5. Vogel approximation method. What is degeneracy in transportation problem? Ans. In a transportation problem with m origins and n destinations if a basic feasible solution has less than ( m + ni) allocations, the problem is said to be a degenerate transportation problem. What do you understand by a balanced and an unbalanced transportation problem? How an unbalanced problem is tackled? Ans In a transportation problem if the total availability from all the origins is equal to the total demand at all the destinations z Such transportation problems are known as balanced tansportation problems. (Total supply = Total demand) In many situations, the total availability may not

be equal to the total demand i.e. tranportation problem.

Such problems are known as unbalanced

The unbalanced problem could be tackled by adding a dummy destination or source depending upon the requirement and the costs of shipping to this destination (or from source) are set equal to zero. The zero cost cells are treated the same way as real cost cell and the problem is solved as a balanced problem. (Total supply Total demand)

Describe the steps involved in vogal approximation method (VAM). Ans Step. 1. For each row of the transportation table identify the smallest and next to smallest cost. Determine the difference between them for each row. These are called penalities. Similarly compute these penalties for each column. Setp. 2. Identify the row or column with the largest penalty and allocate as much as possible within the restrictions of the rim conditions to the lowest cost cell in the row or column selected. Setp. 3. Cross out of the row or column completely satisfied by the allocation. Setp. 4. Repeat steps 1 to 3 untill all assignment have been made. Define the following terms in transportation Problem. (i) feasible solution (ii) Optimal solution. Ans. 1. Feasible Solution. A feasible solution to a transportation problem is a set of non negative allocations, x that satisfy the rim conditions. 2. Optimal Solution. A feasible solution that minimize the transportation cost is called the optimal Solution. Explain North west corner rule for finding initial solution for a transportation problem. Ans. 1. Start in the north west corner of the requirement table: (a) If D1< S1, set x11 equal to find the balance supply and demand and proceed horizontally (cell 1, 2). (b) If = S1 set x11 equal to D1, find the balance supply and demand and proceed diagonally (cell 2, 2). (c) If D1>S1, set x11equal to compute the baiance supply and demand and proceed vertically (cell 2, 1). 2. Continue in this manner, step by step away from the north west corner until, finally a value is reached in the south east corner. Give an algorithm to solve transportation problem. Describe the steps involved in solving transportation problem. Ans. 1. Make a transportation Model. For this enter the supply a., from the origin demand b1 at the destinations and unit cost C,, m the varous cells 2 Find initial basic feasible solution 3. Perform optimality test: (a) Find dual variable (b) Make opportunity cost matrix (c) Compute the cell evaluation matrix current basic feasible solution is optimal. If all cell evaluation are positive or zero the Or

(d) In case any cell evaluation is negative, select the vacant cell with the most negative evaluation. This isalled identified cell. 4. Iterate towards optimal solution. For this make as much allocation in the identified cell as possible so that it become basic.

5. Repeat step 3 and 4 till optimal solution is obtained. State the Assignment model. Is assignment problem a special case of transportation? Ans Assignment Model Suppose there are n jobs to be performed and n person are available for doing these jobs. Assume that each person can do each job at a time, though with varying degree of efficiency .The problem is to find an assignment so that the total cost for performing all jobs is minimum Yes, the assignment problem is a special case of transportation problem when each origin is associated with one and only one destination. Give the mathematical formulation of an assignment problem Ans Let = 0, if the facility is not assigned to 1th job 1, if the th facility is assigned to th job. The model is given by

What do you mean by restrictions an assignments? How a restriction problem tackled?

Or Or

How will you solve an assignment where a particular assignment is prohibited? Ans. Sometime technical, space, legal or other problems do not permit the assignment of a particular facility to a particular job. Such problem are known restrictions an assignment problem. Such problem can be solved by assigning a very heavy cost to the corresponding cell. It will automatically excluded from further consideration. What is the unbalanced assignment problem? How is it solved by the Hungarian method? Ans When the number of facilities is not equal to the number of jobs, such problems are known as unbalanced assignment problem. Since the Hungarian method of solution require a square matrix, fictitious facilities or jobs. Jobs may be added and zero costs be assigned to the corresponding cells of the matrix. These cells are then treated the same way as the real cost cells during the solution procedure. How do you come to know that Assignment problem has alternate optimal solution? Ans. Sometimes it is possible to have two or more ways to strike off all zero elements in the reduced matrix for a given problem. In such cases there will be an alternate optimal solution with same cost. Describe the steps involved in solving assignment problem by Hungarian method.

Ans. 1. Prepare a square matrix. 2. Reduce the matrix. 3. Check whether an optimal assignment can be made in the reduced matrix or not. 4. Find the minimum number of lines crossing all zeros. If this number of lines is equal to the order of matrix then it is an optimal solution. Otherwise gp to step 5. 5. Iterate towards the optimal solution. 6. Repeat step 3 through 5 until an optimal solution is obtained. Compare assignment problem with transportation problem. Ans. An assignment model may be regarded as special case of the transportation model. Here facilities represent the sources and jobs represent the destination. Number of sources is equal to the number of destinations, supply at each source is unity and demand at each distination is unit. In assignment the number of units allocated to a cell be either one or zero. The assignment problem is a completely degenerate form of transportation problem. Distinguish between transportation, assignment and sequencing model what is sequencing model). Ans. Transportation and assignment are allocation model (as explained above) Sequencing model. are applicable in situation in which the effectiveness measure a function of order as sequence of performing a series of jobs. The selection of the apropriate order in which waiting customer/Job may be served is called sequencing. State the assumption made in sequencing model. Ans 1 Only one operation is carried out on a m/c 2. Each operation once started, must be completed. 3. Only one rn/c of each type is available. 4. A job is processed as soon as possible but only in the order specified. 5. Processing time are independent of order f performing the operation. 6. Transportation time is negligible. 7. Cost of in process inventory is negligible.

Duality Theory, Sensitivity analysis and Goal Programming Q. 4.1 Explain the meaning of duality in LP Ans For every LP problem there is related unique L P problem mvolvmg the same data which also describes the original problem. The given original problem is known as primal programme. The programme can be rewritten by transposing the rows and columns of the statement of the problem. Inverting the programme in this way results in dual programme. The two programmes have very closely related properties so that optimal solution of the dual problem gives complete information about the optimal solution of primal problem. Solving the problem by writing dual programme is known as duality in LP

Q. 4.2. In a primal problem 1. jr variable unrestricted 2. il constraint occur with equality sign. What can you say about its dual problem of the above two problems. Ans. 1. If in primal th variable is unrestricted then one of the constraint will be of equality sign in dual problem. 2. If in primal th constraint with equality sign then one of the variable will be unrestricted in the dual problem. Q. 4.3. If the dual of an LPP is solved, where will we get the value of decision variables of the primal LPP. Ans. The value of decision variables of primal are given by the base row of the dual solution under the slack variable, neglecting the -ye sign if any, and under the artificial variables neglecting the ye sign if any, after deleting the constant M. Q. 4.4. What is the importance of duality? Ans. 1.If. the primal problem contains a large number of rows and a smaller number of columns, the computational procedure can be considerably reduced by converting it into dual and then solving it. 2. This can help managers in answer questions about alternative course of actions and their relative values. 3. Economic interpretation of the dual helps the management in making future decisions. 4. Calculation of the dual checks the accuracy of the primal solution. Q. 4.5. Write short note on sensitivity analysis. Ans. During the formulation it is assumed that the parameters such as market demand, capacity resources, consumption, availability, cost or profit are all known with certainty and do not change over time. In actual practice the market fluctuate and all these variables kept on changing. It is therefore desirable to study how the current optimal solution changes when the parameter of the problem get changed. In thei problems this information may be more important than the single result provided by optimal solution. The study of the effect of discrete changes in parameters on the optimal solution is called the sensitivity analysis. Such an analysis converts the static linear programming. solution into dynamic tool to study the effect of changing conditions such as in business and industry. In other words the objective of analysis is to determine how sensitive the optimal solution is to the changes in those parameters. Such an analysis is known as sensitivity analysis. Q. 4.6. Write a short note on Goal programming. Ans. Goal programming is quite similar to linear programming but is applied for situation which have multiple goal as objective. For a company manufacturing lathes and milling machines there can be following objectives 1. Maximize profit in rupees 2. Maximize number of lathes to be manufactured. 3. Maximize number of milling machines to be manufactured. It is obvious that the three goals cannot be added, since their units are different. Goal programming asks the management to set some targets for each of the goal and rank them in order of importance. Having

received this information, goal programming tries to mimmize the deviations from the targets It starts with the most important goal and continues till the achievement of a less important goal.

Probabilistic Models (Decision Theory and Game Theory) Q. 5.1. What do you mean by zero sum game and two person zero sum games in game theory? Ans. Zero sum game: It is the game in which the sumof payments to all the players after the play of the game is zero. Two person zero sum game : It is a game involving two players, in which the gain of one player equals the loss of other. Q. 5.2. What is saddle point and game value in game theory? Ans. Saddle point : Saddle point is the number, which is lowest in its row and highest in its column. - Game value : It is the average wining per play over a long no. of plays. Q. 5.3. Write short note on pure strategy. How it differ from mixed strategy? Ans Pure strategy If a player knows exactly what the other player is going to do, a deterministic situation is obtained and objective function is to minimize the gain Therefore the pure strategy is a decision rule always to select a particular course of action. Mixed strategy If a player is guessmg as to which activity is to be selected by the other on any particular occasion, a probabilistic situation is obtained and objective function is to maximize the expected gain. Thus, the mixed strategy is a selection among pure strategies withfixed probabilities. Q. 5.4. Indicate the difference between decision making under risk and uncertainty in statistical decision theory. Ans Decision making under risk In this case more than one states of nature exist and there is enough information available to assign probability to each of the possible state. Decision making under uncertainty : Here more than one state of nature exists but there is no information about the various states, not even sufficient knowledge to assign probabilities to them. Q 5.5 Enumerate the vanous quantitative methods which are used for decision making under uncertainty and decision making under risk

Ans Decision making under uncertainty 1 Criterian of optimism 2. Criterian of pessimism. 3. Minimax regret criterion. 4. Criterion of realism. 5. Laplace criterion. Decision making under risk: 1. Expected value criterion

2 Expected opportunity loss criterian 3 Expected value of perfect mformation 4. Use of incremental analysis. Q. 5.6. List the steps in decision, making approach. Ans. 1. List all the alternatives. 2. Identify the expected future events. 3 Construct a payoff table 4. Select optimum criterion. Q 5.7 Distinguish between game of strategy and game of chance Ans Game of strategy If in the game the actions are determined by skills, at is called a game of strategy Game of change If m the game the actions are determmed by chance, it is termed as game of chance. Q 5.8 What do you mean by optimal strategy? Ans Optimal strategy The strategy that puts the player in the most preferred position irrespective of the strategy of his opponents is called an optimal strategy Any deviation from this strategy would reduce his payoff

Dynamic Programming Q. 7.1 State the Principle of optimality in dynamic programming. Ans. This principle implies that a wrong decision taken at one stage does not prevent from taking the optimum decision for the remaining stages. An optimal policy has the property that whatever the initial state and decision are, the remaining decisions must constitute an optimal policy with regard to the state resulting from the first decision. Q. 7.2. Explain concepts of state and stage in dynamic programming. Ans. Stage : Stage is a certain time interval or certain sub division of the problem for which independent feasible decision are possible. State: is the description of the system, which tells the necessary parameters of the system for making decisions. Q. 7.3. What are the essential characteristics of dynamic programming? Ans. 1. The problem can be divided into stages, with a policy decision required at eacfi stage. 2. Each stage has a number of states associated with it. 3. The effect of the policy decision at each stage is to transform the current state into a state associated with next stage. 4. Given the current stage, an optimal policy for remaining stages is independent of the policy adopted in the pervious stages.

5. The solution procedure begins by finding an optimum policy for each state of the last stage. 6. A functional equation is available which identifies the optimal policy for each state with (n 1) stages left. 7. Using this function4l equation, the solution procedure moves backward stage by stage, each time finding the policy when starting at initial stage. Q. 7.4. Distinguish between linear programming and dynamic programming. What sort of problems can be solved by dynamic programming? Ans Linear programming models assume that data do not change w r t time It is one time decision process and assumes average values of the decision variables Other important limitation of linear programming is that it assumes that data to be known with certainty. Dynamic programming can be used to determine optimal strategies, by taking into account the uncertainties and can analyze multiperiod and multistage problems. In other words the technique is free from the limitation of linear programming. But it can be used to tackle very simple situations involving a few variables. If the no. of variable is larger the computation took becomes quite complex and involved. Moreover linear programming has standard ways to formulate the problems and solve them; there is no standard approach in dynamic programming. It is on the other hand a general way of solving large, co;mplex problem by splitting them into smaller problems, which are more easily solved. Q. 7.5. What is dynamic programming ? Write some application of dynamic programming. Ans. Dynamic programming: It is a mathematical technique dealing with the optimization of multistage decision process. The word programming has been used in the mathematical sense of selecting an optimum allocation of resources and dynamic is particular useful for problems where decisions are taken at several distinct stages such as everyday or every weak. Dynamic programming is a technique for solving large complex problem (time varying variables) by splitting them into smaller problems, which are more easily solved. Applications The following are a few of the large no of fields in which dynamics programming has been successfully applied:. 1. Production 2. Inventory control 3. Allocation of resources 4. Selection of advertising media 5. Spare part level determination 6. Equipment replacement policy.

Queuing Theory Q. 8.1. What is a queueing problem ? What is to be determined system?

Ans A queuemg problem is to determine the optimum level or service which minimize the total cost of providing service and waiting for the service. In a specified queuing system, the problem is to determine the following: (a) Probability distribution of queue length. (b) Probability distribution of waiting time of customer in the queueing (c) The busy, period distribution. There are two costs involved in queueing problems: 1. Waiting time cost. 2. Service cost. Q. 8.2. Differentiate between transient and steady state. Ans Transient state It the operating characteristics vary with time, it is said to be transient state. Usually a system is transient during the early stages of its operation. Steady State : If the operating characteristics are independent of time, it is said to be steady state. Q. 8.3. Define Traffic intensity or utilization factor. Ans Utilization factor/Traffic Intensity It is the proportion of time a server actually spends with the customers.

Q. .8.4. State some of the important distributions of arrival and Ans. Important distributions of arrival and service time 1. M - Markovian arrival and departure distribution. 2. Ek Erlangian with parameter k service times. 3. CI General independent arrival distribution. 4. G - General departure distribution 5. D Deterministic interarrival and service time. Q. 8.5. Write a note on Ken lal and Lees notation for the identification of queues. Ans. The complete notation can be expressed as (a/b/c) : (a/ elf) a = arrival distribution b = departure distribution c = no of parallel service channel in the system d = Service discipline e = maximum number of customer allowed in the system. f = calling source or population.

Q. 8.6. Explain the notation (MIM/1) (FCFS/oc/). Ans. Compare with standard notation M Markovian (possion) arrival distribution. M Markovian (exponential) service distribution. I = Single channel FCFS Service discipline - First come first served cc = Max. no. of customer allowed in the system (Infinite). cc = Calling source or population (infinite) Q. 8.7. Distinguish between Balking, Jockeying and Reneging. Ans. If a customer decides not be enter the queue since it is too long, he is said to have balked. If the customer enter the queue, but after sometimes looses patience and leave it, he is said tohave reneged. When there are two or more parallel queue and customer moves from one queue to other is known as Jockeying. Q.8.8. What do you mean by calling source or population. Ans. The arrival pattern of the customer depends upon the source, which generate them is called calling source or population. A finite source exist when the arrival affects the probability of future customer. Q. 8.9. Name the different queuing discipline. Ans. FIFO : First In First Out FCFS : First Come,. First Served LIFO :Last In First Out SIRO : Service In Random Order. Q. 8.10. List down the assumptions made in single channel queuing model with poission arrival and exponential service rate. Ans. Assumption1. The customer arrive for service at a single facility at random according to poission distribution with mean arrival rate 2. 2. The service time has exponential distribution with mean service rate . 3. The service discipline followed is first come first served. 4. Customer behaviour is normal. 5. Service facility behaviour is normal. 6. The waiting space far queue is finite. 7. The calling source has infinite size.

8. The system is in stable state. Q. 8.11. Give some applications of queuing theory.

Ans. Queuing theory has been applied to wide variety of business situations. All situation where customers are involved such as restaurants, cafeterias, departmental stores, cinema halls, banks, post offices, petrol pump, airline counter, patient in clinic etc. are likely to have waiting lines. The customer expects a certain level of service, whereas the firm providing service facility tries to keep the cost minimum while providing service.

Q. 8.12. How do you classify Queuing Model? Ans. The various types of queuing models can be classified as follows: 1. Probabilistic models 2. Deterministic models 3. Mixed Queuing models.

Replacement Models Q. 9.1. What is replacement problem? Ans The replacement problems are concerned with the situations that arise when some time such as machmes, equipments and electric bulbs etc need replacement due to decreased efficiency, failure or breakdown. The problem of replacement is to decide best policy to determine an age at which the replacement is more economical instead of continuing at increased cost. Q. 9.2. What are the situations, which makes the replacement of items necessary? Ans. 1. The old item has become in worse condition and work badly. 2. The old item has failed due to accident. 3. A better or efficient design of machine has come in market. Q. 9.3. Explain money value, present value and discount rate. Ans. Money Value : Money has a value over time. We often speak; Money is worth 10% per year spending Rs. 100 today would be equivalent to spending Rs. 110 at the end of one year. In, other words if we spend Rs. 110 after a year from now, we could equivalently spend Rs. 100 today which would be of worth Rs. 110 next year. Present Worth FactorIf i is the interest rate then (1 +i) is called the present worth factor. In other wards Present value of one rupee spends in n years time ftom now onwards. Discount rate The present worth factor of unit amount to be spent after one year is given by V = (1 + r) where i is interest rate and V is called discount rate or depreciation value.

Q. 9.4. Discuss the brief replacement procedure for the items that deteriorate with time. Ans. When ignoring the changes in the value of money-The item should be replaced when the average annual cost to date becomes equal to the current maintenance cost. When considering the changes in the value of money(a) The machine should be replaced if the next periods cost is greater than the weighted average of previous cost. (b) The machine should not be replaced if the next periods cost is less than the weighted average of previous costs. Q. 9.5. Briefly explain Individual and Group replacement. Ans. Group replacement is concerned with those items that either work or fail completely. It often happens that a system contains a large no. of identical low cost items that are increasingly liable to failure with age When the value of individual items is so small that cost of keeping records of individual ages cannot be justified. It may be advantageous to replace all items at fixed intervals. Such a policy is called Group replacement. Individual replacement: Under this policy an item is replaced immediately after its failure Group replacement: Under this policy, decision is taken as to when all the items must be replaced irrespective of the fact that the item has failed or have not failed, with the provision of that an item fails before optimal time, it may be replaced individually Q. 9.6. What is the advantages of preventive replacement over routine replacement? Ans. Advantages of Preventive Replacement Over Routine Replacement: Routine replacement means carrying out minor replacement jobs at regular intervals. It involves minor jobs such as lubrication, minor adjustment of pressure and tightening of loose parts etc. Preventive maintenance is the planned maintenance of plants and equipments in order to prevent or minimize breakdowns and depreciation rates. PM incudes all types of jobs like (a) Major jobs like overhauling and reconditioning etc. (b) Replacement of consumables like gaskets, belts, seal, bearings etc. .. . .(c) Internal cleaning of equipments, lubrication and oil changing. Q. 9.7. What is the difference between age maintenance and preventive maintenance? Ans. Age replacement is a subset of preventive maintenance.

Age Replacement: It is the replacement of item at fixed interval (as per its technical characteristics) irrespective to its condition at that time. Condition basedMaintenance : It is based on the fact that whenever any failure is to occur it gives some types of waining. CBM is the use of advanced technology to sense machinery operating characteristics such as vibration, temp., pressure etc. and to compare the measured values of these characteristics with historical data as per established criteria to assess machinery condition. CBM permit conditiOn based rather than age based initiation of maintenance efforts to correct the any problem identified Inventory Models Q. 10.1 What is inventory? Ans. An inventory consists of usable but idle resources such as men, machines material or money When resources involved are a material, the inventory is called stock. Q. 10.2. Define lead time and reader point in inventory problems. Ans. Lead time : It is the time period between the placement of order and receipt of goods. / 2. Recorder level It is the level of stock at which replenishment order is placed and is equal to the lead time multiplied with the demand during lead time. Q. 10.3. What are the uses of maintaining inventories? Ans. 1. It helps in smooth and efficienf running of an enterprise. 2. It provides service to the customer at a short notice. 3. It reduce product costs since there is an added advantage of batching and long uninterrupted producion run. Due to absence of stock, the company may have to pay high prices because of piece wise purchasing. Inventory helps in maintaining the economy by absorbing some of the fluctuations when the demand for an item fluctuates. Q. 10.4. What are the disadvantages of maintaining inventories Ans. 1. A production foreman who has large in process inventory may be able to hide poor planning sinc there is always something to manufacture. Inventory does not add any value to the product. Inventory means unproductive tied up capital of the enterprise. With large inventory there is always likelihood of absolescence etc.

For maintaining inventory additional money to be spent on personnel, equipment, insurance etc. Q. 10.5. What are the different costs that are involved in inventory model?

Ans. 1. Inventory carrying or stock holding costs. (a) Capital tied up in inventories. (b) Cost of storage space. (c) Depreciation and deterioration cost. (d) Pilferage cost. (e) Obsolescence cost. (I) Handling cost. (g) Record keeping cost. (h) Taxes and Insurance. 2. Procurement costs or set up costs. 3. Shortage cost or stock out costs. Q. 10.6. What is the advantages (need) of inventory control in organization? Ans. 1. Inventory, control ensures an adequate supply of items to customers and avoids the shortage as for as possible at the minimum cost. 2. It makes use of available capital in a most effective way and avoids an unnecessary expenditure on high inventory etc. 3. The risk of loss due to change in prices of items is reduced. 4. It ensures smooth and efficient running of organization. 5. It provides advantages of quality discounts on bulk purchases. 6. It eliminates the possibility of duplicate ordering. 7. It helps to minimize the loss due to deterioration obsolescence, damage or pilferage etc. 8. It helps in maintaining the economy by absorbing some of the fluctuations when the demand for an item fluctuates. Q. 10.7. How the term inventory may be classified? Or Distinguish between direct and indirect inventories.

Ans. Direct inventories : The items, which play a direct role in the manufacture and become an integral part of finished goods, are known as direct inventories. They are further divided into four types (a) Raw material inventories. (b) Walk in process inventories.

(c) Finished good inventories. (d) Spare parts inventories. Indirect inventories : Those items which are necessarily required for manufacturing but do not become the component of finished production, like oil, grease, lubricants, petrol etc. Q 10.8. What is inventory problem? Ans Inventory problem is to decide when to order and how much to order so that total cost of the system should be mimmum Q 10.9 Define EOQ Write the formula for finding EOQ Ans EOQ is the size of the order which mmimizes total annual cost of carrying

Q. 10.10. What are price breaks in inventory model? Ans. Inventory problems in which the item cost is variable and depends upon the quantity manufactured or purchased, This usually happens when discounts are offered for the purchase of large quantities. These discounts are known as price break in inventory model.

Chapter 11 : Network Models Q 11.1 Define critical path and critical activities Ans Critical path the path containing critical activities (with zero float) is known as critical path. Critical activity the activity, which can not be delayed without delaying the project duration, is known as critical activity

Q 11.2 Differentiate between supercritical and subcritical activities

Ans Supercritical an activity having negative float is known as supercritical activity. Subcritical An activity having positive float is known as subcritical activity This activity may be delayed without any delay m the project

Q 11.3 Differentiate between slack and float

Ans Slack It is the time by which occurrence of an event can be delayed

Q. 11.4. Enlist four types of floats used in network analysis.

Ans. (a) Total float. (b) Free float (c) Independent float (d) Interfering float

Q 11.5 Define Free Float, Independent float, Interfering float as used in PERT chart.

Ans. Freefloat : Portion of the total float within which an activity can be manipulated without affecting the floats of subsequent activities. Independent float: Portion of the total float within which an activity can be delayed without affecting the floats of proceeding activities. Interfering float : It is equal to the difference between the total float and the free float of the activity. Q. 11.6. What do you mean by dummy activity? Ans. Dummy activity : An activity, which only determines the dependency of one activity on the other, but does not consume any time, is called a dummy activity. Q. 11.7. Define dummy arrow used in network. Ans. Dummy arrow: It represent the dummy activity in the network. It only represents the dependency of one activity on the other. It is denoted by dash/dotted line.

Q 11.8. Define dangling and looping in net-work models.

Ans. Dangling : The disconnection of an activity before the completion of all the activities in a network diagram is known as dangling. Looping (cycling) : Looping error is also known as cycling error in a network diagram. Drawing an endless loop in a network is known as error of looping.

Q. 11.9. Differentiate between event and activity.

Ans. Event: The beginning and end points of an activity are called events or nodes. Event is a point in time and does not consume any resources. Activity : It is physically identifiable part of a project which require time and resources for its execution. An activity is represented by an arrow, the tail of which represents the start and the head, finish of the activity.

Q. 11.10. Define (i) Network (ii) Path terms used in network.

Ans. (i) Network: It is the graphical representation of logically and sequentially connected arrows and nodes representing activities and events of a project. (ii) Path : An unbroken chain of activity ,arrows connecting the initial event to some other event is called path.

Q. 11.11. Differentiate between CPM and PERT.

Ans. CPM.: 1. CPM is activity oriented i.e., CPM network is built on the basis of activities. 2. CPM is a deterministic model. It does not take into account in uncertainties involved in the estimation of time. 3. CPM places dual emphasis on project time as well as cost and finds the trade off. between project time and project cost. 4. CPM is primarily used for projects which are repetitive in nature and comparatively small in size. PERT 1.PERT is event oriented. 2.PERT is a probabilitic model.

3.PERT is primarily concerned with time only. 4. PERT is used for large one time reserach and development type of projects.

Q 11.12. Define crashing in network mode1s.

Ans. Crashing: The deliberatic reduction of activity normal time by puffing an extra effort is called crashing. The crashing is being done by allocating more manpower or by subcontracts.

Q. 11.13. Differentiate between: (i) Crash project time and optimum project time (ii) Normal cost and crash cost.

Ans. (i) Crash project time: It is the minimum time by which the prOject may be completed. Optimum project time: The time corresponding to minimum project cost for completion of the project is known as optimum project time. (ii) Normal cost : The cost associated when the project completed with normal time Crash cost: The cost associated when the project completed with crash time is known as crash cost.

Q.11.14. Briefly explain resource allocations. Distinguish between Resource smoothing and Resource levelling.

Ans. The resource allocation procedure mainly consists of two activities: (z) Resource smoothing (ii) Resource levelling. Resource smoothing If the project duration could not be changed then the resource allocation only smoothen the demand on resources in order that the demand for any resource is uniform as possible The periods of maximum demand for resource are located and the activities are accordmg to their float values are shifted for balancing the availability and requirement of resources. The intelligent utilization of floats can smoothen the demand of resources to the maximum possible extent is called resource

smoothing. Resource Levelling : There are various activities in a project demanding varying levels of resources. The demand on certain specified resources should not go beyond the prescribed level is know as resource levelling.