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1. Dear students get fully solved assignments
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ASSIGNMENT
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
QUESTION1. Define the Concept of Operations Research. Also Explain its
framework.
Anwer1. Operationsresearch,oroperational researchinBritishusage,isadiscipline thatdealswith
the application of advanced analytical methods to help make better decisions. Further, the term
'operational analysis'isusedinthe British(andsome BritishCommonwealth) military, as an intrinsic
part of capability development, management
QUESTION2. Explain the concept of forecasting. Also Elaborate the steps
involved in the forecasting process.
Answer2. A planning tool that helps management in its attempts to cope with the uncertainty of
the future, relying mainly on data from the past and present and analysis of trends. Forecasting
starts withcertainassumptionsbasedonthe management'sexperience,knowledge, and judgment.
These estimatesare projectedinto the coming months or years using one or more techniques such
as Box-Jenkins models, Delphi method, exponential smoothing, moving averages, regression
analysis, and trend projection. Since any error in the
DRIVE SUMMER 2016
PROGRAM MBA
SEMESTER III
SUBJECT CODE & NAME OM 0010 - OPERATIONS MANAGEMENT
BK ID B1934
CERDIT 4
MARKS 60

2. QUESTION3. Anorganisationhas three productioncentres P1, P2 and P3 that
supply products to four warehouses W1, W2, W3 and W4. The monthly
production capacities of the three production centres are 160, 150 and 190
units, respectively. The monthly demand of warehouses is 80, 90, 110 and
160 units, respectively. The transportation cost per unit (in rupees) is shown
in following Table
Discussion questions:
1. How many units should an organisation supply to warehouses so that the
total transportation cost is minimised?
2. Calculate Total Transportation Cost
Answer3.
1. Here, total production capacities of three production centres = 160 + 150 + 190 = 500 units and
total demand of warehouses = 80 + 90 + 110 + 160 = 440 units.
In order to minimise the total transportation cost, both should be equal. So organisation need to
supply 500 – 440 = 60 units.
QUESTION4. Explainthe following criterions that adecisionmaker may adopt
under uncertain conditions.
a. Maximax Criterion

3. Answer4a.Indecisiontheory,the optimistic (aggressive) decision making rule under conditions of
uncertainty. It states that the decision maker should select the course of action whose best
(maximum) gain is
b. Maximin Criterion
Answer4b.Itis a strategywhichmaximizesthe minimum gain (or minimizes the maximum loss). A
risk adverse manager using this rule will select the option with the largest payoff based on the
assumption that the
c. Minimax Regret Criterion
Answer4c.Itis a strategywhichseekstominimize the maximumpossible regret ie opportunity cost
that will be incurred as a result of having made the wrong decision (e.g. contribution/profit/cost
savings forgone). The
d. Realism Criterion
Answer4d.The Criterion of Realism decision rule is an attempt to make a tradeoff between
complete riskindifference (asinthe Maximax rule),and total risk aversion (as in the Maximin rule).
Withthisprocedure,the decision maker will decisde how much emphasis to put on each extreme.
Tod do this, he must choose a Coefficient of Realism, called alpha (α), which is a decimal number
between 0 and 1.
e. Insufficient Reason Criterion
Answer4e.A principle that was first enunciated by Jakob Bernoulli which states that if we are
ignorantof the waysan eventcanoccur (andtherefore have no reason to believe that one way will
occur preferentially compared to another), the event will occur equally likely in any way. Keynes
(1921, pp. 52-53) referredtothe principle asthe principleof indifference, formulating it as "if there
is no known reason for
.
QUESTION5. Solve the assignment problem shown in the following table:

4. Also determine the total assignment cost.
Answer5.
Let us solve the assignment problem:
Step 1: We have to get at least one zero in each row and each column. For that we need to take
lowestelementof eachindividual rowandsubtract that from every element of that row and follow
the same
QUESTION6. Elaborate the replacement of equipment that deteriorates with
time. What are the limitations of replacement models?
Answer6.
If any equipmentormachine isusedfora longperiod of time, due to wear and tear, the item tends
toworsen.A remedial actiontobringthe itemorequipmenttothe original levelisdesired. Then the
need forreplacement becomes necessary. This need may be caused by a loss of efficiency in a
situationleadingtoeconomicdecline. By efflux of time the parts of an item are being worn out and
the cost of maintenance andoperation is bound to
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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