Seat No.: ________ Enrolment No.

___________

GUJARAT TECHNOLOGICAL UNIVERSITY

BE - SEMESTER– VII (NEW) EXAMINATION – WINTER 2021
Subject Code:2172011 Date:03/12/2021
Subject Name:Production Optimization Techniques
Time:02:30 PM TO 05:00 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
4. Simple and non-programmable scientific calculators are allowed.

Q.1 (a) Mark the following statement as True or False 03

1. A feasible region of a linear programming problem must be convex set.
2. Minmax is an optimist’s choice while Minmin is a pessimist’s criterion
in decision making.
3. Multiple servers may be in series or in parallel.
(b) With the help of quantity cost curve, explain the significance of EOQ. What are the 04
limitation of using the formula for an EOQ?
(c) Solve LPP using simplex method. 07
Maximize Z = 8x1 – 4x2
Subject to : 4x1 + 5x2  20
-x1 + 3x2 ≥ -23
x1 ≥ 0, x2 unrestricted in sign
Q.2 (a) The manager of the bank observes that on the average, 18 customers are served by 03
a cashier in an hour. Assuming that the service has an exponential distribution, what
is the probability that (a) a customer shall be free within 3 minutes (b) customer
shall be serviced in more than 12 minutes?
(b) Obtain the dual form of following primal LP problem: 04
Minimize Z = x1 – 3x2 - 2x3
Subject to : 3x1 – x2 + 2x3  7
2x1 – 4x2 ≥ 12
-4x1 + 3x2 + 8x3 =10
x1 , x2 ≥ 0, x3 unrestricted in sign
(c) A product is manufactured at four factories A, B, C and D. Their unit production 07
costs are ₹ 2, ₹ 3, ₹ 1 and ₹ 5, respectively. Their production capacities are 50, 70,
30 and 50 units, respectively. These factories supply their product to four stores,
demand for which are 25, 35, 105 and 20 units respectively. Unit transportation cost
in rupees from each factory to each store is given in the following table :

Stores
I II III IV
A 2 4 6 11
Facrories B 10 8 7 5
C 13 3 9 12
D 4 6 8 3

Determine the extent of the deliveries from each of the factories to the each of stores,
so that the total production and transportation cost is the minimum.
OR

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 (c) Discuss various methods to find the optimal solution of transportation problem from 07
available feasible solution.
Q.3 (a) What is an assignment problem? Is it true to say that it is a special case of 03
transportation problem? Explain.
(b) How would you deal with the assignment problems where 04
1. Some assignments are prohibited?
2. The objective function is of maximization type?
(c) What is queuing theory? Explain the general structure of the queuing system. 07
Illustrate some queuing situations.

OR
Q.3 (a) What is queuing problem? What are the basic characteristics of queuing system? 03
(b) Discuss following terms and their significance related to operating characteristics 04
of queuing system:
1. Queue length
2. System length
3. Waiting time in the queue
4. Total time in the system
(c) A company has four sales representatives who are to be assigned to four different 07
sales territories. The monthly sales increase estimated from each sales
representative for different sales territories are shown in following table:
Sales territories
Sales
I II III IV
representatives
A 200 150 170 220
B 160 120 150 140
C 190 195 190 200
D 180 175 160 190
Suggest optimal assignment and the total maximum sales increase per month.

Q.4 Information on activities required for a project is as follows:

Name A B C D E F G H I J
Activities 1-2 2-3 2-4 2-5 3-5 4-5 5-6 6-7 6-8 7-8
Node
Normal 3 3 7 9 5 0 6 4 13 10
Time(W)
Normal 300 30 420 720 250 0 320 400 780 1000
Cost(₹)
Crash 2 3 5 7 4 0 4 3 10 9
Time(W)
Crash 400 30 580 810 300 0 410 470 900 1200
Cost(₹)

(a) Draw the network diagram. 03

(b) Determine critical path. What the normal project duration and cost (Q 4 (a)). 04
(c) Crash the relevant activities symmetrically and determine the optimal project completion 07
time and cost for above data.
OR

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Q.4 A small project composed of 7 activities, whose time estimates are listed in the table
below.
Estimated duration (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) Find the expected duration and variance for each activity. 03
(b) Draw the project network. Determine critical path and latest and earliest expected 04
times.(Q 4 (a))
(c) How do you distinguish between resource levelling and resource allocation 07
problems? State and explain an algorithm for resource allocation.
Q.5 (a) Explain the general method for solving sequencing problem where n jobs are 03
required to be processed on a pair of machines, with machining to be done on all
the jobs in same order.
(b) Discuss methods for decisions under uncertainty. 04
(c) The following mortality rates have been observed for a certain type of fuse: 07
Week 1 2 3 4 5
Percentage failing by
5 15 35 57 100
the end of week
There are 1000 fuses in use and it costs Rs. 5 to replace an individual fuse. If all
fuses were replaced simultaneously it would cost Rs. 1.25 per fuse. It is proposed
to replace all fuses at fixed intervals of time, whether or not they have burnt out,
and to continue replacing burnt out fuses they fail. At what time intervals should the
group replacement be made? Also prove that this optimal policy is superior to the
straight forward policy of replacing each fuse only when it fails.

OR
Q.5 (a) The simple engineering company has a machine whose purchase price is Rs. 80,000. 03
The expected maintenance costs and resale price in different years are as given here:

Year 1 2 3 4 5 6 7
Maintenance 1000 1200 1600 2400 3000 3900 5000
cost (Rs.)
Resale 75 72 70 65 58 50 45
Value(‘000 Rs)
After what time interval, in your opinion, should the machine be replaced?

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(b) Determine the optimal sequence of performing 5 jobs on 4 machines. The 04
machining of each job is required in order ABCD and process timing are as follows:
Machine
Job
A B C D
1 8 3 4 7
2 9 2 5 5
3 6 4 5 8
4 12 5 1 9
5 7 1 2 3

(c) A businessman has an option of selling a product in domestic market or in export 07

market. The available relevant data are given below.
Items Export market Domestic market
Probability of selling 0.6 1.0
Probability of keeping 0.8 0.9
delivery schedule
Penalty of not meeting 50,000 10,000
delivery schedule (₹)
Selling price (₹) 9,00,000 8,00,000
Cost of third party 30,000 Nil
inspection (₹)
Probability of collection 0.9 0.9
of sale amount

If the product is not sold in export market, it can always sold in domestic market.
There are no other implications like interest and time.
(a) Draw the decision tree using data given above.
(b) Should the businessman go for selling the product in the export market?
Justify your answer.

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