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MS-51
Operations Research
1. Explain computational aspect of simplex method for solving Linear Programming
Problems (LPP). Take a problem and apply M- method for solving the LPP.
2. Five employees of a company are to be assigned to five jobs, which can be done by
any of them. The workers get different wages per hour. These are: Rs 5 per hour for
A, B, and C each, and Rs 3 per hour for D and E each. The amount of time taken by
each employee to do a given job is given in the following table. Determine the
assignment pattern that (a) minimizes the total time taken, and (b) minimizes the
total cost, of getting five units of work done.
Employee
Job A B C D E
1 7 9 3 3 2
2 6 1 6 6 5
3 3 4 9 10 7
4 1 5 2 2 4
5 6 6 9 4 2
2. 3. What is the importance of integer programming models in supporting managerial
decisions? Describe the rationale behind Cutting Plane Method used for solving
integer programming models.
4. (a) Minicomputer Company purchases a component for which it has a steady usage of
1,000
units per year. The ordering cost is Rs. 50 per order. The estimated cost of money
invested in inventory is 25 per cent per year. The unit cost of the component is Rs 40.
Calculate the optimal ordering policy and total cost of the inventory system, including
purchase cost of the components.
(b) If, in this, the component supplier agrees to offer price discounts of minimum lot
supplies as per schedule given, reassess the decision on the optimal ordering policy
and the total cost as before.
Lot size (Units) Price per unit
Up to 149 Rs. 40
150-499 Rs. 39
500 or more Rs. 38
5. Explain why simulation may be the only method in situations where it will be
extremely difficult to observe actual environment.
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3. MS-55
Q. "These are many possible structures for SC, but the simplest view has materials converging on
an organization through tiers of suppliers and products diverging through tiers of customers".
Elaborate.
Answer......
Q. What is Bullwhip effect? Explain the various permutations and combinations to reduce this
effect in SCM.
Answer. The bullwhip effect, as this is called, causes erratic replenishment orders placed on
different levels in the supply chain that have no apparent link to final product demand. The results
are excessive inventory investment,..........
Q. "The leading supply chain planning (SCP) products generally have many features as compared
to ERP software packages" – Give your elaborate remarks on this statement.
Answer. ........
Q. Identify the need for Performance measurement in Supply Chain Management. Describe
various methods and techniques that could be employed for the performance measurement of
Supply Chain Management
Answer.........
Q. Answer the following questions in brief:
a. What supply chain strategies can rail companies use to stop the erosion of market share to air
travel in case of passengers and road in case of freight?
b. How can telephone companies protect their markets from competition from ISP’s using supply
chain strategies?
Answer.........
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