QUANTITATIVE TECHNIQUES (QT)

WORKSHEET 7

1. Define Operations Research (Quantitative Techniques). What are the different Operations Research
Techniques and explain nature and applications

2. a) Two cards are randomly drawn from a pack of 52 cards and thrown away, what is the probability of
drawing an ace in a single draw from the remaining cards?
b) If two dice are tossed, what is the probability that the sum of the numbers showing will be (i) 8,
(ii) more than 8?
c)Three six face dice are tossed. What is the probability that the sum of the numbers showing will
be 10?
d) A box contains 8 Red, 3 Blue and 9 Green balls. If 3 balls are drawn at random then calculate
the probability of the following:
i)All three are Red
ii)All three are Blue

3. The incident of occupational disease in an industry is such that the workmen have a 20% chance of
suffering from it. What is the probability that out of six workmen , 4 or more will contact the disease?

4. Solve the following Linear Programming Problem by Simplex method

Maximize Z = 20x1 + 30x2
Subject to constraints:
3x1 + 3x2≤ 36
5x1 + 2x2≤ 50
2x1 + 6x2≤ 60
x1, x2 ≥ 0
5. A firm manufactures two products x and y by using three types of raw materials A, B and C. The
details have been given in the following table:
Raw Material X Y No. of units
Available
A 5 2 170
B 4 5 170
C 3 8 180
If per unit profit for products x and y are Rs.5 and Rs.3 respectively, find the optimum product
mix using Simplex Method.
6. Solve the following L.P.P. by simplex method
Maximize Z = 4x1 + 3x2
s.t. 2x1 + x2≤ 30
x1 + 2x2≤ 24
x1 ,x2 ≥ 0
(b) Also write the dual of the above problem.

7. What is the difference between decision making under uncertainty and risk ? Explain the various
criterions of decision making under uncertainty by giving examples in each case. Take an appropriate
example and prepare conditional profit (PAYOFF TABLE) and opportunity loss table and find EMV,
EOL & EVPI

8. Explain the following:

(i) Decision Environment
(iii) Decision Tree analysis

9. A newspaper boy has the following probabilities of selling a magazine:

No. of copies sold 10 11 12 13 14
Probability 0.10 0.15 0.20 0.25 0.30
Cost of a copy is Rs.1.50 and selling price is Rs.2. He cannot return unsold copies. How many copies
should he order? Also find EVPI. (Ans:5.3;11 or 12;.95)

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10. Solve the following Transportation Problem:
Warehouse
Plant W1 W2 W3 W4 Capacity
O1 25 17 25 14 300
O2 15 10 18 24 500
O3 16 20 8 13 600
Demand 300 300 500 500
Overtime can be used to increase Capacity by 50% at each plant, but it adds 10, 15 and 20 to the unit
costs at each plant respectively. Solve the problem using VAM.
11. Consider the following unbalanced Transportation problem:
From 1 2 3 Supply
A 5 1 7 10
B 6 4 6 80
C 3 2 5 15
Demand 75 20 50
Since there is not enough supply, some of the Demands of the destinations may not be satisfied. The cost
for unsatisfied demand at destinations 1,2 and 3 is Rs. 5, 3 and 2 respectively. Find the optimum solution.
12. Solve the following transportation problem for minimum cost:
Destination
Origin W1 W2 W3 W4 Supply

F1 50 150 70 60 50
F2 80 70 90 10 60
F3 15 87 79 81 40
Demand 20 70 50 10 150

13. The following information is given regarding a project, find the critical path and the different floats:
Activity Duration (in days)
1-2 2
1-3 6
1-4 7
2-7 1
2-5 3
3-5 4
3-6 6
4-8 8
7-9 3
5-9 3
6-9 4
8-9 5
(Ans=Critical Path -1-4-8-9;20 days)

14. Draw the network from the following activities and find the critical path
Activity Predecessors Duration
A - 14
B - 13
C A 12
D A 17
E B 16
F C 14
G D,E 12
(Ans: Critical Path=1-2-5-6;43 days)

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15. The table given below gives the different time estimates for a project :
Duration in weeks
Activity Optimistic Most likely pessimistic
1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
(a) Draw the project network and identify all the paths through it.
(b) Calculate the expected time and variance for each activity.
(c) What is the expected length of the Critical Path and its variance?
(d) If the project due date is 19 weeks , what is the probability of not meeting the due date?
(e) Find the probability that the project will be completed in 21 weeks.
(Ans:17 weeks;.90824;.2514)

16. Explain the role of PERT/CPM & Networking in management and point out the difference between
PERT and CPM. Explain how Float is calculated in Pert/Cpm?

17. A and B play a game in which each has three coins, a penny ,a nickel and a dime.The penny is worth
Rs.1,nickelRs.2 and dime Rs.3 .Each selects a coin without the knowledge of the others choice. If the
sum of the coins is an odd amount, A wins B’s coin and if the sum is even, B wins A’s coin. Find the
best strategy for each player and value of the game. (ans:0)

18. Explain the rules of Dominance and solve the following:

B1 B2 B3 B4
A1 42 72 32 12
A2 40 30 25 10
A3 30 08 10 0
A4 45 10 0 15
(Ans=480/35)
19. A has two ammunition stores, out of which I is twice as valuable as the other. B is an attacker who can
destroy an undefended store but he can only attack one of them. A can successfully defend only one of
them. A learns that B is about to attack one of the stores but does not know which one. What should he
do? What is the outcome? (Ans: v= -2/3)
20. At a certain petrol pump, customers arrive according to a poisson process with an average time of 5
minutes between arrivals. The service time is exponentially distributed with mean 2 minutes. On the
basis of this information find out:
i) What would be the average queue length?
ii) What would be the average number of customers in system?
iii) What would be the average waiting time in system?
iv) What probability of customers will have to wait before their service begins?

21. a)What is a Queuing problem? What are the basic characteristics and the major applications of Queuing
Theory?
b)A duplicating machine in an office is operated by a person who does other jobs also. The
average service time for a job is 3 minutes per customer. On an average, 6 minutes one customer
arrives for duplicating. Find:
I. The machine utilization ratio
II. Percentage of times that an arrival has not to wait
III. Average time spent by customer in system
IV. Average queue length
V. The arrival rate, if the management is willing to deploy the person exclusively for duplicating
when the average time spent by a customer is 15 minutes

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 22. A manufactured is offered a machine. It has a cost price of Rs.25000. The running costs are Rs.4000
for each of the first 5 years and they increase by Rs.1000 every subsequent year. If the discount rate is
10%, find out the optimum year of replacement of the machine assuming the resale value is 0.
23. A Taxi owner estimates from his past records that the costs per year for operating a taxi whose
purchase price is Rs 60,000 are given below:
Year 1 2 3 4 5
Operating Cost 10,000 12,000 15,000 18,000 20,000
After 5 years the operating cost is Rs 6000k where k = 6,7,8,9,10 (K denoting age in years). If the
resale value decreases by 10% of purchase price each year, what is the best replacement policy.
24. a) What do you understand by Replacement ? What are the various Replacement situations?

b)The following are the costs of running a particular forklift van . Assume that the van will be
replaced by a similar van , what is the best time to replace it
Year Resale Value at the Petrol & Tax during the Other Running
end of year (Rs) year(Rs) (Running Cost) Costs
0 7000 (Purchase Cost) -
1 6250 900 100
2 5750 900 300
3 5500 900 500
4 5000 900 700
5 4500 900 900
6 4000 900 1100
7 3500 900 1300
8 3000 900 1500
rd
(Ans =3 year; 1700)
25. a) What do you understand by Simulation. Explain the areas of application, advantages and limitations
of Monte Carlo Simulation Model.

b)The management of a company is considering the marketing of a new product. The fixed cost
required in the project is Rs.4000. Three factors are uncertain- Selling price, Variable cost and the
annual sales volume. The management has the data on these three factors as under:
Selling Price Prob. Variable cost (Rs.) Prob. Sales (units) Prob.
(Rs.)
3 0.2 1 0.3 2000 0.3
4 0.5 2 0.6 3000 0.3
5 0.3 3 0.1 5000 0.4
Consider the following random numbers:
81,32,60;4,46,31;67,25,24;10,40,2;39,68,08;59,66,90;12,64,79;31,86,68;82,89,25;11,98,16
Using the sequence (first three random numbers for the first trial,etc.), simulate the average profit for the above
project on the basis of 10 trials.(Ans:Rs2100)

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