Assignment: Decision Science - 204 Submission: 5 Nov, 2016
Assignment: Decision Science - 204 Submission: 5 Nov, 2016
Assignment: Decision Science - 204 Submission: 5 Nov, 2016
LINEAR PROGRAMMING
Lathes
Milling
Grinding
I
12
4
2
II
6
10
3
40
100
Find the number of parts I and II to be manufactured per week to maximize the profit.
3. Consider a small plant which makes two types of automobile parts, say A & B. it buys castings
that are machined, bored & polished. The capacity of machining is 25 per hour for A & 24 per
hour for B, capacity for boring is 28 per hour for A and 35 per hour and the capacity of polishing
is 35 per hour for A and 25 per hour for B. castings for part A cost Rs. 2 and sell for Rs. 5 each
and those for part B cost Rs. 3 and sell for Rs. 6 each. The three have running costs of Rs. 20,
Rs. 14 &Rs. 17.50 per hour. Assuming that any combination of parts A & B can be sold.
Formulate & solve this problem as an LPP to determine the optimum product mix & maximum
profit.
4. A refinery makes 3 grades of petrol A, B and C from crude oils D, E and F. Crude oil F can be
used in any grade but the others must satisfy the following specifications.
Grade
Rs. 48
Rs. 50
Rs. 49
Specifications
Not less than 50% crude D
Not more than 25% crude E
Not less than 25% crude D
Not more than 50% crude E
No Specifications
There are capacity limitations on the amounts of 3 crude elements than can be used
Crude
Capacity (KL)
500
49.5
500
47.5
360
48.5
40,000
2,00,000
3,00,000
Radio
20,000
5,00,000
7,00,000
Newspaper
15,000
3,00,000
1,50,000
Magazine
5,000
1,00,000
1,00,000
To have a balanced campaign, the owner has determined the following four restrictions:
i). There should be no more than 4 television advertisements
ii). There should be no more than 4 advertisements in the magazine
iii). There should not be more than 60 per cent of all advertisements in newspaper & magazine
put together.
iv). There must be at least 45,00,000 exposures to families with annual income of over Rs.
50,000.
Formulate this problem as an LP model to determine the number of each type of advertisement
to be given so as to maximise the total number of exposures.
8.
A tape recorder company manufactures models A, B and C, which have profit contributions
per unit Rs15, Rs.40 and Rs.60, respectively. The weekly minimum production requirements
are 25 units for model A, 130 units for model B and 55 units for model C. Each type of
recorder requires a certain amount of time for the manufacturing of the component parts, for
assembling and for packing. Specifically, a dozen units of a model A require 4 hours for
manufacturing, 3 hours for assembling and 1 hour for packaging. The corresponding figures
for a dozen unit of model B are 2.5, 4 and 2 and for a dozen units of model C are 6, 9 and 4.
During the forthcoming week, the company has available 130 hours of manufacturing, 170
hours of assembling and 52 hours of packaging time. Formulate this problem as an LP
model so as to maximize the total profit to the company.
9.
A company manufacturing animal feed must produce 500 kgs of a mixture daily. The mixture
consists of two ingredients F1 & F2. Ingredient F1 costs Rs. 5 per kg and ingredient F2 costs Rs. 8
per kg. Nutrient constitutions dictate that the feed contains not more than 400 kgs of F1 and a
minimum of 200kgs of F2. Formulate the LPP and find the quantity of each ingredient used to
minimise cost.
10.
TRANSPORTATION PROBLEMS
1. Determine the optimum shipping cost for the following transportation problem.
Retails outlet
Distribution centre
Availability
A
B
C
D
E
Agra
55
30
40
50
40
8
Allahabad
35
30
100
45
60
4
Calcutta
40
60
95
35
30
8
Requirement
5
2
4
6
3
2. The wholesale company has three warehouses from which supplies are drawn for four
retail customers. The company deals in a single product. The supplies of which at each
warehouse are.
Warehouse no.
Supply( units)
Customer No.
Demand units
20
15
28
19
17
13
18
Conveniently total supply at the ware houses is equal to total demand from the customer.
The following table gives the transportation costs per unit shipment from each ware
house to each customer.
Customer
Ware house
1
2
3
4
1
3
6
8
5
2
6
1
2
5
3
7
8
3
Determine the allocation to minimize overall transportation cost.
3. Find the initial basic feasible solution of the following transportation problem using
i) North west corner method.
ii) Matrix minimum method.
iii)Vogels approximation method.
Also find corresponding costs.
Factory
Warehouse
Capacity
A
B
C
D
units
7
X
11
31
51
11
9
Y
71
31
41
61
18
Z
41
09
71
21
Requirement
05
08
07
Unit
15
F
7
6
5
50
Capacity
10
80
15
5. Goods have to be transported from sources S1, S2 & S3 to destinations D1, D2 & D3.
The transportation cost per unit, capacities of the sources, and the requirements of the
destinations are given in the following table. Determine a transportation schedule so that
cost is minimised.
Demand
Supply
S1
S2
S3
D1
8
15
3
150
D2
5
10
9
80
D3
6
12
10
50
120
80
80
D2
30
30
8
8
D3
50
40
70
7
D4
10
60
20
14
Supply
7
9
18
34
D1
19
70
40
5
7. A company has factories at F1, F2 and F3 that supply products to warehouses at W1, W2
and W3. The weekly capacities of the factories are 200, 160 and 90 units respectively.
The weekly warehouse requirements are 180, 120 and 150 units respectively. The unit
shipping costs (in rupees) are as follows:
Warehouse
Factory
W1
W2
W3
F1
3
6
8
F2
6
1
2
F3
7
8
3
8. The following table provides all the necessary information on the availability of supply to
each warehouse, the requirement of each market, and the unit transportation cost (in Rs.)
from each warehouse to each market.
Market
Supply
P
Q
R
S
A
6
3
5
4
22
B
5
9
2
7
15
Warehouse
C
5
7
8
6
8
Demand
7
12
17
9
45
The shipping clerk of the shipping agency has worked out the following schedule, based on
his own experience: 12 units from A to Q, 1 unit from A to R, 8 units from A to S, 15
units from B to R, 7 units from C to P and 1 unit from C to R.
a). Check and see if the clerk has the optimal schedule.
b). Find the optimal schedule and minimum total transport cost.
c). If the clerk is approached by a carrier of route C to Q, who offers to reduce his rate in the
hope of getting some business, by how much should the rate be reduced before the clerk
would offer him the business.
9. A manufacturer wants to ship 22 loads of his product as shown below. The matrix
gives the kilometers from sources of supply to the destinations.
Destination
Source
D1
D2
D3
D4
D5
Supply
S1
S2
5
4
8
7
6
7
6
6
3
5
8
5
S3
Demand
8
4
4
4
6
5
6
4
4
8
10. Four hospitals have decided to send their patients needing linear accelerator therapy to
three locations in their region. They have contract with an ambulance company which
charges Rs. 2/km. Each location can handle only a certain number of outside patients
per day. Find the optimal allocations of patients to locations of therapy given the
following details.
Hospitals
1
2
3
4
Place
17
12
46
38
5
Patients
5
8
7
5
ASSIGNMENT PROBLEMS
1. A department of a company has five employees with five jobs to be performed. The time (in
hours) that each man takes to perform each job is given in the effectiveness matrix.
Employees
I
II
III
IV
V
A
10
5
13
15
16
B
3
9
18
13
6
C
10
7
2
2
2
Jobs
D
7
11
9
7
12
E
7
9
10
4
12
How should the jobs be allocated, one per employee, so as to minimize the total man-hours.
2. A company operates in four territories, and four salesman available for an assignment. The
territories are not equally rich in their sales potential. It is estimated that a typical salesman
operating in each territory would bring in the following annual sales:
Territory :
II
III
IV
126000
105000
84000
63000
The four salesmen also differ in their ability. It is estimated that, working under the same
conditions, their yearly sales would be proportionately as follows:
Salesmen :
Proportion:
If the criterion is maximum expected sales, the intuitive answer is to assign the best salesman
to the richest territory, the next best salesman to the second richest, and so on; verify this
answer by the assignment technique.
3. Five men are available to do five different jobs. From past records, the time (in hours) that
each man takes to do each job is known and is given in the following table:
Jobs
I
II
III
IV
V
A
2
9
2
7
1
B
6
8
7
6
1
C
4
6
5
3
1
Men
D
4
2
7
3
1
E
5
3
9
5
1
Find out how men should be assigned the jobs in way that will minimize the total time taken.
4. A company has 4 machines on which to do 3 jobs. Each job can be assigned to one and only
one machine. The cost of each job assignments for minimum cost?
Job
Machine
A
B
C
17
7
9
23
12
14
27
16
18
31
18
21
5. A pharmaceutical company producing a single product sold it through five agencies situated
in different cities. All of a sudden, there rouse a demand for the product in another five cities
that didnt have any agency of the company. The company is now facing the problem of
deciding on how to assign the existing agencies in order to despatch the product to needy
cities in such a way that the travelling distance is minimized. The distance between the
surplus and deficit cities (in km) is given in the following table.
Surplus Cities
A
B
C
D
a
160
135
140
50
Deficit cities
b
c
130
115
120
130
110
125
50
80
d
190
160
170
80
e
200
175
185
110
55
35
80
105
80
6. A national truck rental service has a surplus of one truck in each of the cities, 1, 2, 3, 4, 5 & 6
and a deficit of one truck in each of the cities 7, 8, 9, 10, 11 & 12. The distances (in km)
between the cities with a surplus and cities with deficit are displayed in the table below:
To
From
10
11
12
31
62
29
42
15
41
12
19
39
55
71
40
17
29
50
41
22
22
35
40
38
42
27
33
19
30
29
16
20
23
72
30
30
50
41
20
7. In the modification of a plant layout of a factory, four new machines M1, M2, M3 & M4 are
to be installed in a machine shop. There are five vacant places A, B, C, D& E available.
Because of limited space, machine M2 cannot be placed at C and M3 cannot be placed at A.
The cost of locating a machine at a place (in hundred rupees) is as follows.
Location
Machine
M1
11
15
10
11
M2
12
10
M3
11
14
11
12
M4
14
Find the optimal assignment schedule.
8. A city corporation has decided to carry out road repairs on four main arteries of the city. The
government has agreed to make a special grant of Rs. 50 lakh towards the cost with a
condition that the repairs be done at the lowest cost and quickest time. If the conditions
warrant, a supplementary token grant will also be considered favourably. The corporation has
floated tenders and five contractors have sent in their bids. In order to expedite work, on road
will be awarded to only one contractor.
Cost of Repairs (Rs. In lakh)
Contractors / Road
R1
R2
R3
R4
C1
14
19
15
C2
17
20
19
C3
18
21
18
C4
10
12
18
19
C5
10
15
21
16
a). Find the best way of assigning the repair work to the contractors and the costs.
b). If it is necessary to seek supplementary grants, what should be the amount sought?
c). Which of the five contractors will be unsuccessful in his bid?
9.
5 salesmen are to be assigned to 5 territories. Based on the past performance, the
following table shows the annual sales (in Rs. Lakhs) that can be generated by each salesman
in each territory. Find the optimum assignment.
Salesman
Territory
T1
T2
T3
T4
T5
S1
26
14
10
12
9
10.
S2
31
27
30
14
16
S3
15
18
16
25
30
S4
17
12
21
30
25
S5
20
19
25
16
10
D4
S1
20
36
33
18
S2
S3
S4
25
18
25
24
20
20
19
22
17
21
20
22
11.
The Head of the department have five jobs A, B, C, D, E and five subordinates V, W,
X, Y, Z. The number of hours each man would take to perform each job is as follows.
V
W
X
Y
Z
A
10
15
15
18
12
20
20
12
10
10
10
15
25
10
No of Pages Typed/Hour
12
14
C
D
E
3
4
4
8
10
11
Job
P
Q
R
S
T
No. of Pages
199
175
145
298
178
QUEUING THEORY
1. A television repairman finds that the time spent on his jobs has an exponential distribution with a
mean of 30 minutes. If he repairs the sets in the order in which they came in, and if the arrival of
sets follows a Poisson distribution with an approximate average rate of 10 per 8-hour day, what
is the repairmans expected idle time each day? How many jobs are ahead of the average set just
brought in?
2. In a railway marshalling yard, goods trains arrive at a rate of 30 trains per day. Assuming that the
inter arrival time follows an exponential distribution and the service time (the time taken to
hump a train) distribution is also exponential with an average of 36 minutes. Calculate:
a). Expected queue size (line length).
b). Probability that the queue size exceeds 10.
If the input of trains increases to an average of 33 per day, what will be the change in a & b.
3. Arrivals at telephone booth are considered to be Poisson with an average time of 10 minutes
between one arrival and the next. The length of phone calls is assumed to be distributed
exponentially, with a mean of 3 minutes.
a). What is the probability that a person arriving at the booth will have to wait?
b). The telephone department will install a second booth when convinced that an arrival would
expect waiting for at least 3 minutes for a phone call. By how much should the flow of arrivals
increase in order to justify a second booth?
c). What is the average length of the queue that forms from time to time?
d). What is the probability that it will take a customer more than 10 minutes altogether to wait for
the phone and complete his call?
4. A warehouse has only one loading dock manned by a three person crew. Trucks arrive at the
loading dock at an average rate of 4 trucks per hour and the arrival rate is Poisson distributed.
The loading of a truck takes 10 minutes on an average and can be assumed to be exponentially
distributed. The operating cost of a truck is Rs 20 per hour and the members of the loading crew
are paid Rs 6 each per hour. Would you advise the truck owner to add another crew of three
persons?
5. A road transport company has reservation clerk on duty at a time. He handles information of bus
schedules and makes reservations. Customers arrive at a rate of 8 per hour and the clerk can, on
an average, service 12 customers per hour. After stating your assumptions, answer the following:
a). What is the average number of customers waiting for the service of the clerk?
b). What is the average time a customer has to wait before being served?
c). The management is contemplating to install a computer system for handling information and
reservations. This is expected to reduce the service time from 5 to 3 minutes. The additional cost
of having the new system works out to Rs. 50 per day. If the cost of goodwill of having to wait is
estimated to be 12 paise, per minute spent waiting, before being served, should the company
install the computer system?
6. The tool room companys quality control department is manned by a single clerk who takes an
average of 5 minutes in checking parts of each of machine coming for inspection. The machine
arrive once in every 8 minutes on the average. One hour of the machine is valued at Rs. 15 and a
clerks time is valued at Rs. 4 per hour. What are the average hourly queuing system costs
associated with the quality control department.
7. A bank plans to open a single server drive in banking facility at a particular centre. It is estimated
that 20 customers will arrive each hour on an average. If on an average, it requires 2 minutes to
process a customers transaction, determine:
i). The proportion of time that the system will be idle.
ii). On the average, how long the customer will have to wait before reaching the server.
DECISION THEORY
1. Following table gives profits matrix for different events & actions. Calculate EVPI
Events
Probability
(States of Nature)
E1
E2
E3
E4
Actions
A1
40
70
30
30
0.20
0.35
0.35
0.10
A2
52
28
70
-50
A3
45
40
-50
-70
2. A certain output is manufactured at Rs. 8 and sold at Rs. 14 per unit. The product is such that if it
is produced but not sold during a day time it becomes worthless. The daily sales records in the
past are as follows.
Demand per day:
30
40
50
60
70
24
36
24
12
0.30
0.20
0.10
0.05
0.10
0.25
If the cost per cake is Rs. 3 per unit & selling price is Rs. 4 per unit, how many cakes should the
baker make to maximise his profit. Assume that if cake is not sold at the end of the day its value
is zero.
4. A farmer wants to decide which of the 3 crops he should plant. The farmer has categorised the
amount of rainfall is high, medium & low.
Estimated profit is given below.
Estimated Profit ( inRs.)
Rainfall
Crop A
Crop B
Crop C
High
8,000
3,500
5,000
Medium
4,500
4,500
4,900
Low
2,000
5,000
4,900
Farmer wishes to plant one crop, decide the best crop using:
i). Hurwicz criteria (take degree 0.6)
ii). Laplace criteria
iii). Minimax regret criteria.
5. The past experience shows that the number of copies of a book in demand are between 25 & 30
copies. Some agency purchases such unsold copies for Rs. 35. The vendor purchases the copies
at Rs. 83 each & sales them at Rs. 110 each.
Find the number of copies to be kept in stock using EMV criteria if probability of demand are
known as:
Demand
25
26
27
28
29
30
Probability
0.05
0.10
0.30
0.32
0.16
0.07
6. The manager of a flower shop promises its customers delivery within four hours on all
flower orders. All flowers are purchased on the previous day and delivered to Parker
by 8.00 am the next morning. The daily demand for roses is as follows.
Dozens of roses:
70
80
90
100
Probability
0.1
0.2
0.4
0.3
The manager purchases roses for Rs.10 per dozen and sells them for Rs.30. All unsold roses
are donated to a local hospital. How many dozens of roses should Parker order each evening
to maximize its profit? What is the optimum expected profit?
GAME THEORY
1. Find the optimal strategies for A and B in the following game. Also obtain the value of the game.
As
Bs Strategies
Strategies
B1B2
B3
A1
-7
A2
-6
A3
-7
2. Determine the optimal strategies for each firm and value of the game for the following payoff
matrix
Firm B
Firm A
B1
B2
B3
B4
A1
35
35
25
A2
30
20
15
A3
40
50
10
A4
55
60
10
15
Player A
B1
B2
A1
A2
-2
4. For the following 2*2 Game check whether saddle point exists or not? If not, find the
probabilities for each action of player A and each action for player B. Also find value of the
Game.
Player B
Player A
B1
B2
A1
11
A2
10
Player A
A1
A2
A3
A4
B1
B2
B3
B4
B5
3
5
8
4
5
6
7
4
4
3
9
8
9
7
8
5
6
8
7
3
1
0
4
4
4
4
4
2
0
2
3
3
3
3
3
0
0
1
7
4
3
4
0
2
2
-5
-1
-2
5
0
1
2
1
2
2
6
0
1
2
2
2
2
7. A company is currently involved in negotiations with its union on the upcoming wage
contract. Positive signs in table represent wage increase while negative sign represents
wage reduction. What are the optimal strategies for the company as well as the union?
What is the game value?
Conditional costs to the company (Rs. in lakhs)
Union Strategies
U1
U2
U3
U4
C1
C2
C3
C4
Company
Strategies
0.25
0.20
0.14
0.30
0.27
0.06
0.12
0.14
0.35
0.08
0.05
0.19
-0.02
0.08
0.03
0.00
MARKOV CHAIN
1. It was found in the survey that the mobility of the population in a state to the village,
town & city is in following percentage.
To
From
Village
Town
City
Village
50 %
30 %
20 %
Town
10 %
70 %
20 %
City
10 %
40 %
50 %
What will be the proportion of population in village, town & city after two years given that present
population proportion is 0.7, 0.2 & 0.1 resp.
2. Market survey is made on two brands of breakfast foods A & B. Every time a customer
purchases, he may buy the same brand or switch to another brand. The transition matrix is given
below.
From
A
To
A
0.8
0.2
B
0.6
0.4
At present 60% of people buy brand A and 40% people buy brand B. Determine market shares of
brands A & B in the steady state.
3.
On January 1 (this year), Bakery A had 40 cent of its local market share while the other two
bakeries B and C had 40 per cent and 20 per cent, respectively, of the market share. Based
upon a study by a marketing research firm, the following facts were complied. Bakery A
retains 90 per cent of its own customers, while gaining 5 per cent of Bs customers and 10
per cent of Cs customers. Bakery B retains 85 per cent of its customers, while gaining 5 per
cent of As customers and 7 per cent of Cs customers. Bakery C retains 83 per cent of its
customers and gain 5 per cent of As customers and 10 per cent of Bs customers. What will
each firms share be on January 1 next year and what will each firms market share be at
equilibrium?
CPM/PERT
1. The activities of a project with details are as given bellow
Activity
Predecessor
Activity
to
tm
tp
14
E,G,H
2. A company has two grades of inspectors 1 & 2, the members of which are to be
assigned for a quality control inspection. It is required that at least 2000 pieces be
inspected per 8-hour day. Grade 1 inspectors can check pieces at the rate of 40 per
hour, with an accuracy of 97 percent. Grade 2 inspectors check at the rate of 30 pieces
per hour with an accuracy of 95 percent. The wage rate of a Grade 1 inspector is Rs. 5
per hour while that of Grade 2 inspector is Rs. 4 per hour. An error made by an
inspector costs Rs. 3 to the company. There are only 9 Grade 1 inspectors and 11
Grade 2 inspectors available to the company. The company wishes to assign work to
the available inspectors so as to minimize the total cost of the inspection. Formulate
this problem as an LP model so as to minimize the daily inspection cost.
3. Use the graphical method to solve the following LP problem.
Maximize Z = 7x1 + 3x2
Subject to the constraints:
x1 + 2x2 >= 3
x1 + x2 <= 4
x1 <= 2.5
x2 <= 1.5
x1 , x2 >= 0