NRT/KS/19/5586

Master of Commerce (M.Com.) Semester-IV (C.B.C.S.) Examination

OPERATIONS RESEARCH
Paper—2
Foundation Group—II
Time : Three Hours] [Maximum Marks : 80
N.B. :— (1) ALL questions are compulsory.
(2) All questions carry equal marks.
1. (a) What do you understand by ‘Linear Programming’ ? Explain the advantages of linear
programming. 8
(b) A small scale industry manufactures electrical regulators, the assembly of which is being
accomplished by small group of skilled workers, both men and women. Due to limitations
of space and finance, the number of workers employed cannot exceed 11 and their salary
bill not be more than Rs. 6,000 per month. The male members of the skilled workers are
paid Rs. 600 per month, while female worker doing the same work as the male members
get Rs. 500 per month. Data collected on the performance of these workers indicate that
a male member contributes Rs. 1,000 per month to total return of the industry, while the
female worker contributes Rs. 850 per month. Determine the number of male and female
workers to be employed in order to maximise the monthly total returns. (Use graphical
method). 8
OR
(c) Solve graphically the following linear programming problem. Objective function :
Minimize Cost Z = 20x1 + 40x2
subject to the constraints :
36x1 + 6x2 ≥ 108
3x1 + 12x2 ≥ 36
20x1 + 10x2 ≥ 100
x1 ≥ 0
x2 ≥ 0 16
2. (a) Write short note on Assignment models. 8
(b) 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 on each machine is given in the following
table :
Machine

W X Y Z
A 18 24 28 32
Job B 13 8 17 19
C 16 10 19 22
What are the job assignment which will minimize the cost ? 8
OR
CLS—275 1 (Contd.)
 (c) A project of XYZ company has three warehouses W1, W2 and W3 and four retail stores S1,

S2, S3 and S4. The availability of a given commodity at these warehouses are as follows :

W1 = 14, W2 = 16 and W3 = 5.

The demands at these stores are–S1 = 6, S2 = 10, S3 = 15 and S4 = 4. The cost of transporting

the units of the commodity from warehouse i to store j, in rupees, are given in the following
table :

To
From S1 S2 S3 S4
W1 6 4 4 5
W2 8 9 2 7
W3 4 3 6 2

Determine the optimum transportation schedule by Vogel’s Approximation method, which

minimises the total transportation cost. 16

3. (a) Define ‘Inventory’. State the objectives of Inventory Control. 8

(b) A firm has a machine whose purchase price is Rs. 1,00,000. Its running cost and resale
price (Rs.) at the end of different years are given here :

Years : 1 2 3 4 5 6

Running Cost : 7,500 8,500 10,000 12,500 17,500 27,500

Resale Price : 85,000 76,500 70,000 60,000 40,000 15,000

Obtain the economic life of the machine and the minimum average cost. 8

OR

(c) Novelty Ltd. carries a wide assortment of items for its customers. One item Gaylook, is
very popular. Desirous of keeping its inventory under control, a decision is taken to
order only optimal economic quantity, for this item, each time. You have the following
information :

Annual Demand 1,60,000 Units

Price Per Unit Rs. 20

Carrying Cost Re. 1 Per Unit or 5% rupee of Inventory Value

Cost Per Order Rs. 50

CLS—275 2 NRT/KS/19/5586
 Calculate :
(1) Economic order quantity

(2) Optimum number of orders

(3) Time between two consecutive orders

(4) Total optimal cost

(5) What would be EOQ if the annual sales is 40,000 Units ? 16

4. (a) Write short note on Game Theory. 8

(b) Consider a modified form of “Matching biased coins” game problem. The matching player
is paid Rs. 8.00 if the two coins turn both heads and Rs. 1.00 if the coins turn both tail.
The non-matching player is paid Rs. 3.00 when the two coins do not match. Given the
choice of being the matching or non-matching player, which one would you choose and
what would be your strategy ? 8

OR
(c) A project has the following characteristics :
Time Estimated (in weeks)
Activity Preceding Most Most Most
Activity Optimistic Likely Pessimistic
A — 3 7 11

B — 2 2.5 6
C A 2 3 4
D A 6 7 14
E A 2 3 4
F C 2.5 3 3.5
G D 2.5 4 5.5

H B, E 4.5 5.5 9.5

I H 1 2 3
J F, G, I 1 2 3

(1) Draw the PERT network diagram.

(2) Identify the Critical Path.

(3) What is the expected project completion time ?

(4) What is the probability that the project is completed in 22 weeks ? 16

CLS—275 3 NRT/KS/19/5586
5. (a) A firm manufactures 3 Products—A, B and C. The profit are Rs. 3, Rs. 2 and
Rs. 4 respectively. The firm has 2 machines and below is the required processing time in
minutes for each machine on each product.
Products
A B C
Machines C 4 3 5
D 3 2 4
Machine C and D have 2,000 and 2,500 machine minutes respectively. Formulate LPP
to determine the number of machines to be manufactured of A, B and C. Set up as Linear
Programming problem to maximise. 4
(b) Explain the concept of Least Cost Method (LCM). 4
(c) Write short note on Types of Replacement Analysis. 4
(d) Solve the following 2 × 2 game and find the game value by Arithmetic method :
Player B
B1 B2
A1 5 1
Player A
A2 3 4 4

CLS—275 4 NRT/KS/19/5586
 NRT/KS/19/5586
Master of Commerce (M.Com.) Semester-IV (C.B.C.S.) Examination
OPERATIONS RESEARCH
Paper—2
Foundation Group—II
Time : Three Hours] [Maximum Marks : 80
N.B. :— (1) ALL questions are compulsory.

(2) All questions carry equal marks.

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(M) baxzth ek/;ekuqlkj- 4

CLS—275 5
 NRT/KS/19/5586
Master of Commerce (M.Com.) Semester-IV (C.B.C.S.) Examination
OPERATIONS RESEARCH
Paper—2
Foundation Group—II
Time : Three Hours] [Maximum Marks : 80
N.B. :— (1) ALL questions are compulsory.
(2) All questions carry equal marks.

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CLS—275 6