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ASSIGNMENT
DRIVE FALL 2017
PROGRAM MBA
SEMESTER II
SUBJECT CODE & NAME MBA205 & OPERATIONS RESEARCH
BK ID B2068
CREDITS 4
MARKS 30

Note – The Assignment is divided into 2 sets. You have to answer all questions in both sets.
Average score of both assignments scored by you will be considered as your IA score. Kindly note
that answers for 10 marks questions should be approximately of 400 words.
SET-I
Q.No Questions Marks Total Marks
1 Define the Linear programming problem in operation Research. Also, explain
various assumptions, advantages and limitations of linear programming problem.
A Linear programming problem in operation Research 2.5 10
Assumptions of linear programming problem 20 2.5
Advantages of linear programming problem 2.5
Limitations of linear programming problem 2.5
2 a. Discuss the concept of Degeneracy in transportation problem
10
b. The ABC Tool Company has a sales force of 25 men who work out from Regional
offices. The company produces four basic products lines of hand tools. Mr. Jain,
the sales manager, feels that 6 salesmen are needed to distribute product line 1,
10 salesmen are needed to distribute product line 2, 4 salesmen to product line 3
and 5 salesmen to product line 4. The cost per day of assigning salesmen from
each of the offices for selling each of the product lines are as follows

Regional office Product Lines

�Ú �Û �Ü �Ý
�Ú 20 21 16 18
�Û 17 28 14 16
�Ü 29 23 19
Now, 10 salesmen are allowed to office �Ú , 9 salesmen to office �Û, and 7 salesmen
to office �Ü.
How
linemany salesmen
in order shouldcosts?
to minimize be assigned from each office to selling each product

A Degeneracy in transportation problem 4

Optimum allocation. 3
Optimum transportation cost 3
3 a. Elaborate the meaning of Simulation.
b. What are different Practical applications of simulation

A Meaning of Simulation. 2 10
Practical applications of simulation 8

SET-II

1 a. Define the meaning of assignment problem in operation Research.

b. A Departmental head has four subordinates and four task to be performed. The
subordinates differ in efficiency and the tasks differ in their intrinsic difficulty. His
estimate of the times each man would take to perform each task is given in the
following matrix-
10
Tasks Subordinates
I II III IV
A 8 26 17 11
B 13 28 4 26
10
C 38 19 18 15
D 19 26 24
How should the tasks be allocated to subordinates to minimize the total man-hours?
A Description of assignment problem 4 10
Optimum allocation through Hungarian method 6
2 aHILQH IROORZLQJ FULWHULa¶V XVHG IRU GHFLVLRQ PaNLQJ XQGHU Uncertainty
a. Optimism (maximax or minimin) criterion
b. Pessimism (maximin or minimax) criterion
c. Equal probabilities (Laplace) criterion
d. Coefficient of optimism
Regret (salvage) criterion(Hurwicz) criterion
e.
A a. Optimism (maximax or minimin) criterion 2
b. Pessimism (maximin or minimax) criterion 2
c. Equal probabilities (Laplace) criterion 2
d. Coefficient of optimism (Hurwicz) criterion 2
 400

e. Regret (salvage) criterion 2

3 a. Explain the importance and utility of the replacement model in business
organizations.
b. The maintenance cost and re-sale value per year of a machine whose purchase
price is Rs. 7000 is given below-
Year 1 2 3 4 5 6 7 8
Maintenance cost (in Rs.) 900 1200 1600 2100 2800 3700 4700 5900
Re- sale value (in Rs.) 4000 2000 1200 600 500 400 400
When should the machine be replaced?

A Importance and utility of the replacement model 4 10

Replacement Year 6

*A- Answer