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DRIVE FALL 2017
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER II
SUBJECT CODE & NAME MBA205 & OPERATIONS RESEARCH
CREDITS 2, 4 CREDITS
MARKS 30
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.
Assignment Set -1
Question 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
Assumptions of linear programming problem
Advantages of linear programming problem
Limitations of linear programming problem
Answer: In organisations,managers are required to make judicioususe of scarce resources, such as
men,materials,machinesandcapital,tominimisecosts andmaximise profits.A techniquethatisused
to select the best alternative from a set
Question 2 a. Discuss the concept of Degeneracy in transportation problem
b. The ABC Tool Company has a sales force of 25 men who work out from Regional offices. The
company produces four basic products linesof hand tools. Mr. Jain, the salesmanager, feelsthat 6
salesmenare neededtodistribute productline 1, 10 salesmenare neededtodistribute productline
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
𝑷𝟏 𝑷𝟐 𝑷𝟑 𝑷𝟒
R1 20 21 16 18
R2 17 28 14 16
R3 29 23 19 20
Now, 10 salesmen are allowed to office R1, 9 salesmen to office , and 7 salesmen to office .
How many salesmen should be assigned from each office to selling each product line in order to
minimize costs?
Degeneracy in transportation problem
Optimum allocation.
Optimum transportation cost
Answer: a) Degeneracy in transportation problem
A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1
positive basicvariables(non-zero),otherwisethe basicsolutiondegenerates.Itfollowsthatwhenever
the numberof basic cellsislessthan m + n – 1, the transportationproblemisa degenerate one.The
degeneracy can develop in two ways:
Case 1 - The degeneracy develops while
Question 3 a. Elaborate the meaning of Simulation.
b. What are different Practical applications of simulation
A Meaning of Simulation.
Practical applications of simulation
Answer: a) Simulationisa representationof real-life situations.Itis a methodinwhicha replicaof a
real-worldprocessorsystemisdevelopedovera periodof time.The simulatedmodelactsinthe same
mannerasthe selectedphysical or abstractprocessorsystembehavesinreality.Forexample,aircraft
pilotsare giventrainingthroughsimulationmodelsastrainingwithreal aircrafts canincur huge costs
as well as involve various risks. Similarly, in education sector, teachers are trained on the simulated
modelsof students(agroupof individualswhoimitateasstudents).Thisavoidstheriskof spoilingthe
future of students if the teacher is not able to
Assignment Set -2
Question 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
differinefficiencyandthe tasksdifferintheir intrinsicdifficulty.Hisestimate ofthe timeseachman
would take to perform each task is given in the following matrix-
Tasks Subordinates
I II III IV
A 8 26 17 11
B 13 28 4 26
C 38 19 18 15
D 19 26 24 10
How should the tasks be allocated to subordinates to minimize the total man-hours?
A Description of assignment problem
Optimum allocation through Hungarian method
Answer: a) An assignment problem is a special type of transportation problem. In an assignment
problem,the same numberof facilities(sourcesof supply) needstobe allocatedtothe same number
of jobs(pointsof destinations) so thatthe transportationcostisminimisedorthe profitismaximised.
An assignment problem can occur while assigning:
 Machines to factory orders
 Salespeople to sales territories
 Teachers to classes
 Police vehicles to patrolling areas

Question 2. Define following criteria’s used for decision making under Uncertainty
a. Optimism (maximax or minimin) criterion
b. Pessimism (maximin or minimax) criterion
c. Equal probabilities (Laplace) criterion
d. Coefficient of optimism (Hurwicz) criterion
e. Regret (salvage) criterion
Answer: a) Optimism (maximaxor minimin) criterion: Here,the decisionmakertriesto achieve the
largest possible profit (Maximax) or minimum possible cost (minimin).If the entries in the payoff
matrix are the one which the decisionmakerwantsas large as possible,forexample,profitsorsales
revenue,he/sheselectsthe alternative thatrepresentsthe maximumof the maximumpayoff.Incase
where the entriesof the payoff matrix are one which the decisionmakerwants as small as possible,
he/she goes for the minimum of the
Question3a. Explainthe importance andutilityofthe replacementmodel inbusinessorganizations.
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 (Rs.) 900 1200 1600 2100 2800 3700 4700 5900
Resale value (Rs.) 4000 2000 1200 600 500 400 400 400
Importance and utility of the replacement model Replacement Year
Answer: a) In an organisation, replacement problems arise when fixed assets, such as machines,
equipment, and other tools, need to be replaced due to reduced efficiency, failure or breakdown.
Sometimes,replacementtakesplace when more efficientequipmentisavailable inthe marketorthe
maintenance of the existing equipment is incurring a huge cost on an organisation. However, an
organisation needs to decide when the
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
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Mba205 & operations research

  • 1. Dear students get fully solved assignments Send your semester & Specialization name to our mail id : help.mbaassignments@gmail.com or call us at : 08263069601 DRIVE FALL 2017 PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA) SEMESTER II SUBJECT CODE & NAME MBA205 & OPERATIONS RESEARCH CREDITS 2, 4 CREDITS MARKS 30 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. Assignment Set -1 Question 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 Assumptions of linear programming problem Advantages of linear programming problem Limitations of linear programming problem Answer: In organisations,managers are required to make judicioususe of scarce resources, such as men,materials,machinesandcapital,tominimisecosts andmaximise profits.A techniquethatisused to select the best alternative from a set Question 2 a. Discuss the concept of Degeneracy in transportation problem b. The ABC Tool Company has a sales force of 25 men who work out from Regional offices. The company produces four basic products linesof hand tools. Mr. Jain, the salesmanager, feelsthat 6 salesmenare neededtodistribute productline 1, 10 salesmenare neededtodistribute productline 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 𝑷𝟏 𝑷𝟐 𝑷𝟑 𝑷𝟒 R1 20 21 16 18 R2 17 28 14 16 R3 29 23 19 20 Now, 10 salesmen are allowed to office R1, 9 salesmen to office , and 7 salesmen to office . How many salesmen should be assigned from each office to selling each product line in order to minimize costs? Degeneracy in transportation problem Optimum allocation.
  • 2. Optimum transportation cost Answer: a) Degeneracy in transportation problem A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1 positive basicvariables(non-zero),otherwisethe basicsolutiondegenerates.Itfollowsthatwhenever the numberof basic cellsislessthan m + n – 1, the transportationproblemisa degenerate one.The degeneracy can develop in two ways: Case 1 - The degeneracy develops while Question 3 a. Elaborate the meaning of Simulation. b. What are different Practical applications of simulation A Meaning of Simulation. Practical applications of simulation Answer: a) Simulationisa representationof real-life situations.Itis a methodinwhicha replicaof a real-worldprocessorsystemisdevelopedovera periodof time.The simulatedmodelactsinthe same mannerasthe selectedphysical or abstractprocessorsystembehavesinreality.Forexample,aircraft pilotsare giventrainingthroughsimulationmodelsastrainingwithreal aircrafts canincur huge costs as well as involve various risks. Similarly, in education sector, teachers are trained on the simulated modelsof students(agroupof individualswhoimitateasstudents).Thisavoidstheriskof spoilingthe future of students if the teacher is not able to Assignment Set -2 Question 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 differinefficiencyandthe tasksdifferintheir intrinsicdifficulty.Hisestimate ofthe timeseachman would take to perform each task is given in the following matrix- Tasks Subordinates I II III IV A 8 26 17 11 B 13 28 4 26 C 38 19 18 15 D 19 26 24 10 How should the tasks be allocated to subordinates to minimize the total man-hours? A Description of assignment problem Optimum allocation through Hungarian method Answer: a) An assignment problem is a special type of transportation problem. In an assignment problem,the same numberof facilities(sourcesof supply) needstobe allocatedtothe same number of jobs(pointsof destinations) so thatthe transportationcostisminimisedorthe profitismaximised. An assignment problem can occur while assigning:  Machines to factory orders  Salespeople to sales territories  Teachers to classes  Police vehicles to patrolling areas
  • 3.  Question 2. Define following criteria’s used for decision making under Uncertainty a. Optimism (maximax or minimin) criterion b. Pessimism (maximin or minimax) criterion c. Equal probabilities (Laplace) criterion d. Coefficient of optimism (Hurwicz) criterion e. Regret (salvage) criterion Answer: a) Optimism (maximaxor minimin) criterion: Here,the decisionmakertriesto achieve the largest possible profit (Maximax) or minimum possible cost (minimin).If the entries in the payoff matrix are the one which the decisionmakerwantsas large as possible,forexample,profitsorsales revenue,he/sheselectsthe alternative thatrepresentsthe maximumof the maximumpayoff.Incase where the entriesof the payoff matrix are one which the decisionmakerwants as small as possible, he/she goes for the minimum of the Question3a. Explainthe importance andutilityofthe replacementmodel inbusinessorganizations. 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 (Rs.) 900 1200 1600 2100 2800 3700 4700 5900 Resale value (Rs.) 4000 2000 1200 600 500 400 400 400 Importance and utility of the replacement model Replacement Year Answer: a) In an organisation, replacement problems arise when fixed assets, such as machines, equipment, and other tools, need to be replaced due to reduced efficiency, failure or breakdown. Sometimes,replacementtakesplace when more efficientequipmentisavailable inthe marketorthe maintenance of the existing equipment is incurring a huge cost on an organisation. However, an organisation needs to decide when the Dear students get fully solved assignments Send your semester & Specialization name to our mail id : help.mbaassignments@gmail.com or call us at : 08263069601