BA 5201

7206 APPLIED
OPERATION RESEARCH
Question Bank & Two Marks with answer
COURSE OBJECTIVE:
To learn the concepts of operations research applied in business decision
making.
COURSE OUTCOME:
To facilitate quantitative solutions in business decision making under
conditions of certainty, risk and uncertainty.
UNIT I INTRODUCTION TO LINEAR PROGRAMMING (LP) 12
Introduction to applications of operations research in functional areas of
management. Linear Programming-formulation, solution by graphical and
simplex methods (Primal - Penalty, Two Phase), Special cases. Dual simplex
method. Principles of Duality. Sensitivity Analysis.
UNIT II LINEAR PROGRAMMING EXTENSIONS 12
Transportation Models (Minimising and Maximising Problems) – Balanced
and unbalanced Problems – Initial Basic feasible solution by N-W Corner
Rule, Least cost and Vogel’s approximation methods. Check for optimality.
Solution by MODI / Stepping Stone method. Case of Degeneracy.
Transhipment Models. Assignment Models (Minimising and Maximising
Problems) – Balanced and Unbalanced Problems. Solution by Hungarian
and Branch and Bound Algorithms. Travelling Salesman problem. Crew
Assignment Models.
UNIT III INTEGER PROGRAMMING AND GAME THEORY 12
Solution to pure and mixed integer programming problem by Branch and
Bound and cutting plane algorithms. Game Theory-Two person Zero sum
games-Saddle point, Dominance Rule, Convex Linear Combination
(Averages), methods of matrices, graphical and LP solutions.
UNIT IV INVENTORY MODELS, SIMULATION AND DECISION THEORY12
Inventory Models – EOQ and EBQ Models (With and without shortages),
Quantity Discount Models. Decision making under risk – Decision trees –
Decision making under uncertainty. Monte-carlo simulation.
UNIT V QUEUING THEORY AND REPLACEMENT MODELS 12
Queuing Theory - single and Multi-channel models – infinite number of
customers and infinite calling source. Replacement Models-Individuals
replacement Models (With and without time value of money) – Group
Replacement Models.
TOTAL: 60 PERIODS
TEXT BOOKS
1. Paneerselvam R., Operations Research, Prentice Hall of India, Fourth
Print, 2008.
2. N. D Vohra, Quantitative Techniques in Management,Tata Mcgraw Hill,
2010.
3. Pradeep Prabakar Pai, Operations Research - Principles and Practice,
Oxford Higher Education.

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 Unit 1 Introduction to Linear Programming
May/ June 2016
BA 7206
1. How to identify from simplex table an LPP has alternate optimum
solution?
2. What is the use of artificial variable in LP solution?
1. Solve the following LPP
Maximise z = 10x1+15x2+20x3
S.t 2x1+4x2+6x3 ≤ 24
3x1+9x2+6x3 ≤ 30
x1, x2,x3 ≥0
2. Solve the following LPP using the result of its dual problem.
Maximise z = x1-x2
S.t 2x1-x2 ≥ 2
-x1+x2 ≥ 1
x1, x2 ≥0
1. An advertising agency wishes to reach two types of audiences:
Customers with annual income greater than Rs. 15,000 (target
audience A) and customers with annual income less than Rs. 15,000
(target audience B). The total advertising budget is Rs.2, 00,000. One
programme of TV advertising costs Rs.50, 000, one programme on
radio advertising cost Rs.20000. For contract reasons, atleast three
programmes ought to be on TV and the number of radio programmes
must be limited to five. Surveys indicate that single TV programme
reaches 4, 50,000 customers in target audience A and 50,000 in
target audience B. One radio programme reaches 20000 in target
audience A and 80000 in target audience B. Determine the media mix
to minimize the total reach. Use simplex method to solve the problem.

May / June 2016

BA 9226
1. List the scope of applications of OR techniques.
2. What is sensitivity analysis?
1. An animal feed company must produce 200 Kg of a mixture consisting
of ingredients x1and x2 respectively. x1 costs Rs.3 per Kg and x2 Rs.8
per Kg. Not more than 80 kg of x1 can be used and atleast 60 Kg of x2
must be used. Determine how much of each ingredient should be
used to minimize cost.
2. Solve by dual simplex method the following problem:
Maximise z = 2x1+2x2+4x3
Subject to 2x1+3x2+5x3 ≥ 2
3x1+x2+7x3 ≤ 3
x1+4x2+6x3 ≤ 5 x1, x2,x3 ≥0

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May / June 2016
BA 7206
1. Use Graphical method to solve the following problem:
Maximise z = 15x1+30x2
S.t 4x1+8x2 ≥ 24
2x1+10x2 ≥ 15 and
x1, x2 ≥0
2. Express the LP problem in a standard form
Maximise z = 9x1+7x2
S.t 3x1+4x2 ≤ 20
5x1+2x2 ≥ 10 and
x1, x2 ≥0
1. A chemical manufacturing company manufactures three chemicals
A,B and C, which are sold to the manufactures of soaps and
detergents. On the basis of the next month’s demand, the
management has decided that the total production for chemicals A, B
and C should be at least 350 Kg. A major customer has confirmed an
order of product A for 125 Kg. Product A requires two hours of
processing and products B and C each require one hour of processing
time per Kg. For the coming month 600 hours of processing time is
available. The company wants to meet the requirement at minimum
production cost. The production costs are Rs. 5 Kg for product A, Rs 4
per Kg for product b and Rs. 6 per Kg for product C.
(i) Formulate the problem as an LPP.
(ii) Solve the problem using the Big – M method.
2. Use Duality to solve the following LPP:
Maximise z = 2x1+ x2
S.t x1+2x2 ≤ 10
x1+x2 ≤ 6
x1- x2 ≤ 2
x1- 2x2 ≤ 1 and
x1, x2 ≥0

Nov / Dec 2015

BA 7206
1. List out the applications of linear programming Problem.
2. Name the categories of special cases of linear programming?
1. Solve the following linear programming problem using dual simplex
method
Minimise z = 2x1+ 4x2
Subject to 2x1+x2 ≥ 4
x1+2x2 ≥ 3
2x1+2x2 ≤ 12 and x1, x2 ≥0

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 2. A local travel agent 1 planning a charter trip to a major sea port .The
eight day and seven night package includes the fare for round trip
surface transportation board and lodging and selected tour options.
The charter is restricted to 200 persons and past experience indicates
that there will not be any problem for getting 200 clients. The problem
for the travel agent is to determine the number of Deluxe, Standard
and Economy tour packages to offer for this charter. These three
plans differ according to seating and service for the flight, quality of
accommodations meal plans and tour options. The following table
summarizes the estimated prices for the three packages and the
corresponding expenses for the travel agent. The travel agent has
hired an aircraft for the flat fee of Rs. 2, 00,000 for the entire trip.
In planning the trip, the following considerations must be taken into
account:
(i) At least 10% of the packages must be of the deluxe type.
(ii) At least 35% but not more than 70 % must be of the Standard
type.
(iii) At least 30% must be of the Economy type.
(iv) The maximum number of deluxe packages available in any
aircraft is restricted to 60.
(v) The hotel desires that at least 120 of the tourists should be on
the Deluxe and Standard packages taken together.

Prices and costs for Tour Packages per person

Tour plan Price Hotel Meal and Other
Costs expenses
Deluxe 10,000 3,000 4,750
Standard 7,000 2,200 2,500
Economy 6,500 1,900 2,200
The travel agent wishes to determine the number of packages to offer
each type so as to maximise the total profit.

1. Formulate this as LPP.

2. Restate the above LPP in terms of two decision variables, taking
advantage of the fact that 200 packages will be sold.
3. Find the optimal solution using graphical method for the restated
problem and interpret you results.

Nov / Dec 2015

BA 9226
1. Write down the standard form of a LP problem.
2. List the applications of operation research model.
1. A firm produces three products. These products are processes on
three different machines. The time required to manufacture one of

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 each those products and the daily capacity of the three machines are
given below.
Machine Time per product Machine
(minutes) capacity
1 2 3 Minutes/ day
M1 4 5 4 460
M2 5 - 4 480
M3 4 6 - 450
It is required to determine the daily number of units to be
manufactured for each product. The profit per unit for product 1,2
and 3 is Rs.50 Rs.40 and Rs. 70 respectively. It is assumed that all
the products produced are consumed in the market. Formulate a LP
model to maximise the daily profit and also determine the optimum
production.
2. Find the maximum value of
z = 2x1+ 3x2
Subject to x1+x2 ≤ 30
x2 ≥ 3
x2 ≤ 12
x1- x2 ≥ 0
0 ≤ x1 ≤ 20 solve graphically
3. Write the dual for the problem
Minimise z = x1+2x2+3x3-x4
Subject to x1+2x2+3x3 ≥ 15
2x1+x2+3x3 = 20
x1+2x2+x3+x4 ≤ 10 and
x1, x2,x3,x4 ≥ 0

April / May 2015

BA 7206
1. State the limitations of a graphical method.
2. How does dual simplex method differ from simplex method?
1. Solve the following LPP graphically;
Minimize Z = 3x+2y;
Subject to x-y ≤ 1,x+y≥3 and x, y ≥ 0
2. A person wants to decide the constituents of a diet which will fulfil his
daily requirements of proteins, fat and carbohydrates at the minimum
cost. The choice is to be made from four different types of foods. The
yields per unit of these foods are given below
Food type Yield per unit
Proteins Fats Carbohydrates Cost per unit
1 3 2 6 45
2 4 2 4 40
3 8 7 7 85
4 6 5 4 65
Minimum 800 200 700
requirement

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 Formulate the LPP for the problem.
3. Solve the following LPP Two phase simplex method;
Maximise Z = -4a - 3b - 9c;
Subject to 2a + 4b +6c ≥15
6a+b+6c ≥ 12
a, b, c ≥ 0
May / June 2014
BA 7206
1. What is an unbounded solution?.
2. Write dual for the following LPP.
Maximise z = x1+ x2
Subject to 2x1+x2 ≤ 2
- 2x1+x2 ≥ -5
x1, x2 ≥ 0
1. Solve the following LPP through the Big-M Method;
Minimise z = 5x1-6x2-7x3
Subject to x1+5x2-3x3 ≥ 15
5x1-6x2+10x3 ≤ 20
x1+x2+x3 = 5
x1, x2,x3 ≥0
2. Solve the following LPP by dual simplex method;
Minimise z = 2x1+ x2
S.t 3x1+x2 ≥ 3
4x1+3x2 ≥ 6
x1+ 2x2 ≤ 3
x1, x2 ≥0

May / June 2014

BA 9226
1. State the characteristics of linear programming problems.
2. What are the objectives of sensitivity analysis?
1. Explain the procedure of dual simplex method.
Minimize z = 2x1+x2+x3
Subject to 2x1+x2-x3 ≥ 1
2x1+x2 ≤ 5
-x1 +x3 = 1
x1, x2,x3 ≥0

Nov / Dec 2013

BA 9226
1. State the characteristics of linear programming problems.
2. Write the dual of the problem.

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 Minimize f = = 3x1+x3+2x5
Subject to x1+x3-x4+x5=-1
x2-2x3+3x4+2x5 =-2
xi ≥ 0,i = 1 to 5
1. Solve the following problem
Maximise z = 2x1+ 3x2
Subject to 2x1+x2 ≤ 2
3x1+4x2 ≥ 12
x1, x2 ≥ 0
Show the conditions representing 1. Alternative optima 2. Infeasible
solution 3. Degeneracy and 4. Unbounded solution graphically as well
as in simplex table.
2. A manufacturing firm produces two machines parts using lathes,
milling machines and grinding machines. The different machining
times required for each part, the machining times available on
different machines and the profit on each machine part are given in
the following table.
Type of Machining Time Required Maximum Time
Machine (min) available Per Week
Machine Machine (min)
part I Part II
Lathes 10 5 2500
Milling 4 10 2000
machines
Grinding 1 1.5 450
machines
Profit per unit Rs.50 Rs.100
Determine the number of parts I and II to be manufactured per week
to maximise the profit by any two methods.

May / June 2013

BA 9226
1. List any four applications of Operation Research in management field.
2. Why are slack and surplus variables used while solving Linear
Programming Problems using simplex method?
1. A plant manufactures two products A and B. The profit contribution of
each product has been estimated as Rs.300 for product A and Rs. 400
for product B. Each product passes through three departments of the
plant. The time required for each product and total time available in
each department are as follows:
Department Hours required Available hours during
Product A Product B the month
I 2 3 1600
II 3 2 1500
III 1 1 700

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 The company has a contract to supply at least 300 units of product B
per month. Formulate the problem as a linear programming model
and solve the same by using graphical method.
2. Solve the following linear programming problem using its dual:
Maximise z = 5x1-2x2+3x3
Subject to 2x1+2x2-x3 ≥ 2
x2+3x3 ≤ 5
x1,x2,x3 ≥0

Nov/ Dec 2012

BA 9226
1. List the applications of operation research in marketing.
2. What is sensitivity analysis?
1. An animal feed company must produce 200 Kg of a mixture consisting
of ingredients x1 and x2 respectively. X1 costs Rs.3/- per Kg and x2 Rs.
8/- per Kg. Not more than 80 Kg of x 1 can be used and at least 60Kg
of x2 must be used. Determine how much of each ingredient should be
used to minimize cost.
2. Solve by dual simplex method of the following problem
Minimise z = 2x1+2x2+4x3
Subject to 2x1+3x2+5x3 ≥ 2
3x1+x2+7x3 ≤ 3
x1+4x2+6x3 ≤ 5
x1, x2,x3 ≥0

May /June 2012

BA 9226
1. What are the situations where operations research will be applicable.
2. Define principles of Duality.
1. Solve Maximise z = 4x1+ 10x2
Subject to 2x1+x2 ≤ 10
2x1+5x2 ≤ 20
2x1+3x2 ≤ 18
x1, x2 ≥ 0
2. Use two phase method to
Minimize z = x1+x2
Subject to 2x1+x2 ≥ 4
x1+7x2 ≥ 7
x1, x2,x3 ≥0

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August/ September 2011
BA 6122
1. What are the essential characteristics of a linear programming model?
2. Define the term degenerate solution in an LPP.
1. Solve the following LP problem graphically
Maximise z = 20x1+ 80x2
Subject to 4x1+6x2 ≤ 90
8x1+6x2 ≤ 100
5x1+4x2 ≤ 80 x1, x2 ≥ 0
2. Solve the following LP problem using two-phase method
Minimise z = 10x1+6x2+2x3
Subject to -x1+x2+x3 ≥ 1
3x1+x2+7x3 ≥ 1
x1, x2,x3 ≥0
3. Solve the following Lp problem using dual simplex method
Minimise z = 10x1+2x2+3x3
Subject to 2x1-x2+x3 ≥ 4
x1+x2+2x3 ≤ 8
x2 - x3 ≥ 2
x1, x2,x3 ≥0
4. Solve the following LP problem
Minimise z = x1+5x2+3x3
Subject to x1+2x2+x3 =3
2x1-x2= 4
x1, x2,x3 ≥0
if the objective function is changed to (2,5,2) find the new optimum
solution.

Nov / Dec 2010

BA 6122
1. Write the general mathematical model of Linear Programming problem
in matrix form.
2. Define slack and surplus variables.
3. What do you mean by sensitivity analysis?
4. Write the dual of minimize z = 3x1+2x2
Subject to x1+4x2 ≥ 5
2x1+x2 ≥ 3
x1,x2 ≥ 0
1. Use Big M method to solve
Minimize z = 4x1+3x2
Subject to 2x1+x2 ≥ 10
-3x1+2x2 ≤ 6
x1+x2≥ 6 x1, x2 ≥ 0

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 Unit 2 Linear Programming Extensions

May / June 2016

BA 7206
1. What is unbalanced transportation problem?
2. What is the Travelling Salesman problem?
1. Obtain an optimal solution to the following transportation problem by
U-V method. Use VAM to get the starting BFS
From I II III IV Supply
A 19 30 50 10 7
B 70 30 40 60 9
C 40 8 70 20 18
Demand 5 8 7 14
2. Solve the following assignment problem.
Cost Matrix table.
Machines
Jobs A B C D E
1 11 17 8 16 20
2 9 7 12 6 15
3 13 16 15 12 16
4 21 24 17 28 26
5 14 10 12 11 13

May / June 2016

BA9226
1. List any two differences between a transportation and assignment
problem.
2. What do you mean by degeneracy?
1. Find the minimum cost distribution plan to satisfy demand for cement
at three construction sites from available capacities at the three
cement plants given the following transportation costs (in Rs.) per ton
of cement moved from plants to sites.
From To construction Capacity
sites (tons/month)
1 2 3
P1 300 360 425 600
P2 390 340 310 300
P3 255 295 295 1000
Demand 400 500 800
(tons/month)
2. A company is faced with the problem of assigning 4 machines to 6
different jobs (one machine to one job only). The profits are estimated
as follows. Solve the problem to maximise the total profits.

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 Job Machine
A B C D
1 3 6 2 6
2 7 1 4 4
3 3 8 5 8
4 6 4 3 7
5 5 2 4 3
6 2 7 6 4

May / June 2016

BA7206
1. Define imbalanced transportation problem.
2. Define Travelling Salesman Problem.
1. Find the basic feasible solution of the following transportation
problem by North-West Corner Rules. Also find the optimal
transportation plan by using MODI method:
1 2 3 4 5 Available
A 4 3 1 2 6 80
B 5 2 3 4 5 60
C 3 5 6 3 2 40
D 2 4 4 5 3 20
Demand 60 60 30 40 10
2. A company plans to assign six salesmen to six cities in which it
operates. The estimates of sales revenue (in thousands of rupees) for
each salesman when allocated to different cities are given in the
following table. Identify the best allocation so that the sales revenue is
maximized.
City
Salesman 1 2 3 4 5 6
I 42 48 50 38 50 54
II 50 34 38 31 46 48
III 51 37 43 40 47 51
IV 32 48 51 46 46 48
V 39 43 50 45 49 42
VI 37 47 44 46 47 52
3. Find the initial basic feasible solution of the following transportation
problem by Vogel’s approximation method:

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 Factories Stores
1 2 3 4 Available
A 4 6 8 13 50
B 13 11 10 8 70
C 14 4 10 13 30
D 9 11 13 8 50
Demand 25 35 105 20

Nov / Dec 2015

BA 7206
1. What is an unbalanced transportation problem?
2. What is an assignment problem?
1. Write the procedure for each of the following:
i) Northwest corner cell method
ii) Least cost cell method
iii) Vogel’s approximation method
iv) UV method
2. Consider the following transhipment problem involving 4 sources and
2 destinations. The supply values of the sources S1, S2, S3 and S4
are 100 units, 200 units, 150 units and 350 units respectively. The
demand values of destinations D1 and D2 are 350 units and 450
units, respectively. The transportation cost per unit between different
sources and destinations are summarized as in table. Solve the
transhipment problem.
Destinations
Sources S1 S2 S3 S4 D1 D2
S1 0 4 20 5 25 12
S2 10 0 6 10 5 20
S3 15 20 0 8 45 7
S4 20 25 10 0 30 6
D1 20 18 60 15 0 10
D2 10 25 30 23 4 0

Nov / Dec 2015

BA 9226
1. What is meant by degeneracy in transportation problem? How is it
resolved?
2. What is meant by transhipment model? What is its objective?
1. A military equipment is to be transported from three origins to four
destinations. The supply at the origins, the demand at the
destinations and time of shipment is shown in the table below.
Determine the initial basic feasible solutions to this transportation
problem using Least Cost and Vogel’s approximation methods

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 Origin Destination
D1 D2 D3 D4 Availability
O1 5 2 4 3 22
O2 4 8 1 6 15
O3 4 6 7 5 8
Demand 7 12 17 9
2. Solve the following assignment problems to minimize time:
J1 J2 J3 J4 J5
M1 2 9 3 7 1
M2 6 8 7 6 1
M3 4 6 5 3 1
M4 4 2 7 3 1
M5 5 3 9 5 1
April / May 2015
BA 7206
1. What is unbalanced transportation problem?
2. Which cell will be the first basic variable in case of North West Corner
Method and Least cost Method?
1. Solve the following transportation problem to minimize the total
transportation cost for shifting the goods from factories (A,B and C) to
warehouses (P,Q and R) where unit transportation cost, availability
and demand at factories and warehouses respectively are given in the
following matrix.
P Q R Availability
A 1 2 0 30
B 2 3 4 35
C 1 5 6 35
Demand 30 40 30

May / June 2014

BA 9226
1. What is meant by balanced problems in case of transportation
problem and assignment problem?
2. Name any four applications of travelling salesman problem in
industrial environment.
1. Discuss on degeneracy in transportation problems and transhipment
problems.
2. The Atlantic Coast Conference has four basketball games on a
particular night. The conference office wants to assign four teams of
officials to the four games in a way that will minimize the total
distance travelled by the officials. The distances in miles for each team
of officials to each game location are shown in the table below. Find
the optimal assignment.

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 Game Sites
Official Raleigh Atlanta Durham Clemson
A 210 90 180 160
B 100 70 130 200
C 175 105 140 170
D 80 65 105 120

3. A transportation problem involves the following costa in Rs. Supply

and demand
1 2 3 4 Supply
From 1 500 750 300 450 12
2 650 800 400 600 17
3 400 700 500 550 11
Demand 10 10 10 10
Find the optimal solution.

Nov / Dec 2013

BA 9226
1. Distinguish between transportation problem and assignment
problem.
2. What is meant by balanced problem in case of (a) transportation
problem and (b) assignment problem?
1. Explain the procedure to find the solution for travelling salesman
problem by Hungarian method.
2. A fast food chain wants to build four stores in the Chicago area. In the
past the chain has used six different construction companies and
having been satisfied with each has invited to bid each job, the final
bids (in thousands of rupees) were as shown in Table below
Construction Companies
1 2 3 4 5 6
Store 1 85.3 88.0 87.5 82.4 89.1 86.7
Store 2 78.9 77.4 77.4 76.5 79.3 78.3
Store 3 82.0 81.3 82.4 80.6 83.5 81.7
Store 4 84.3 84.6 86.2 83.3 84.4 85.5
Since the fast food chain wants to have each of the new stores ready
as quickly as possible, it will award at most one job to a construction
company. What selection results in minimum total cost to the fast-
food chain?

May / June 2013

BA 9226
1. What is meant by degeneracy in transportation problem? How is it
resolved?
2. What is meant by transhipment model? What is its objective?

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Nov / Dec 2012
BA 9226
1. Enumerate the methods to find initial basic feasible solution for
transportation models.
2. Define transhipment models.
1. Find the optimal solution of the following transportation problem in
which the cells contain the transportation cost in rupees
W1 W2 W3 W4 W5 Available
F1 7 6 4 5 9 40
F2 8 5 6 7 8 30
F3 6 8 9 6 5 20
F4 5 7 7 8 6 10
Required 30 30 15 20 5 100(Total)
2. A company has a team of four salesmen and the company wants to do
business in four districts. Considering the capabilities of salesmen
and the nature of districts, the company has estimated the profit per
day in rupees for each salesman in each district as below.
1 2 3 4
A 16 10 14 11
B 14 11 15 15
C 15 15 13 12
D 13 12 14 15
May / June 2012
BA 9226
1. What is degeneracy in a transportation model?
2. Differentiate between balanced and unbalanced cases in Assignment
models.
1. A military equipment is to be transported from three origins to four
destinations. The supply at the origins, the demand at the
destinations and time of shipment is shown in the table. Work out a
transportation plan so that the time required for shipment is the
minimum.
A B C D Supply
X 10 22 0 22 8
Y 15 20 12 8 13
Z 21 12 10 15 11
Demand 5 11 8 8
2. A company has a team of four salesman and four districts where the
company wants to start its business. After taking into account the
capabilities of sales men and the nature of districts, the company
estimates that the profile per day in hundreds of rupees for each
salesmen in each districts is as below. Find the assignment of
salesmen to various district which will yield maximum profit.

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 Salesman District
1 2 3 4
A 16 10 14 11
B 14 11 15 15
C 15 15 13 12
D 13 12 14 15
Aug / Sept 2011
BA 6122
1. How do you test for optimality of initial feasible solution of a
transportation problem?
2. How to resolve degeneracy in a transportation problem?
3. What are the main characteristics of a transhipment problem?
4. Can there be multiple optimal solution to an assignment problem?
How would you identify the existences of multiple solutions if any?
1. Determine an IBFS to the following TP using a) Northwest corner cell
method b) Vogel’s approximation method
P Q R S T Supply
A 2 11 10 3 7 4
B 1 4 7 2 1 8
C 3 9 4 8 12 9
Demand 3 3 4 5 6
2. Distinguish between transportation problem and transhipment
problem. Explain with suitable examples.
3. Consider the problem of assigning four sales persons for to four
different sales regions as shown below such that the total sales is
maximized.
Salesman Sales Region
1 2 3 4
1 5 11 8 9
2 5 7 9 7
3 7 8 9 9
4 6 8 11 12
The cell entries represent annual sales figures in crores of rupees.
Find the optimal allocation of the sales persons to different regions.

Nov / Dec 2010

BA 6122
1. Distinguish between transportation and transhipment problem.
2. What is degeneracy in transportation problem?
3. What is an assignment problem? Give two areas of its applications.

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 1. Five wagons are available at stations 1,2,3,4 and 5. These are required
at five stations I, II, III, IV and V. the mileages between various
stations are given by the table below. How should the wagons be
transported so as to minimize the total mileage covered?
I II III IV V
1 10 5 9 18 11
2 13 9 6 12 14
3 3 2 4 4 5
4 18 9 12 17 15
5 11 6 14 19 10

UNIT 3 INTEGER PROGRAMMING AND GAME THEORY

May / June 2016

BA 7206
1. What is the need for integer programming?
2. Define two person zero sum game.
1. The non-integer optimal solution of an LPP is given below. Find the all
integer optimal solution by Gomory’s algorithm.
Cj 5 8 0 0
CB Basic Variable X1 X2 S1 S2 Solution
8 X2 0 1 4/7 -1/7 22/7
5 X1 1 0 -1/7 2/7 12/7
Cj-zj 0 0 -27/7 -2/7 236/7
2. Consider the payoff matrix with respect to the player A as shown in
table. Solve this game optimally using graphical method.
4 2 1 7 3
2 7 8 1 5
May / June 2016
BA 9226
1. Indicate the differences between pure and mixed integer programming
problems.
2. What is meant by saddle point of a game?
1. Solve the following 2 X n game by method of sub-game
Player B
Player A B1 B2 B3
A1 1 3 11
A2 8 5 2
2. Reduce the following game by dominance property and solve it
Player B
1 2 3 4 5
Player A I 1 3 2 7 4
II 3 4 1 5 6
III 6 5 7 6 5
IV 2 1 6 3 1

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May / June 2016
BA 7206
1. Explain the IPP giving an example each of a pure and mixed IPP.
2. The payoff matrix of a game is given in the following table. Find the
solution of the game for players A and B.
Player B
1 2 3 4 5
Player A I -5 -3 -3 2 0
II 0 -1 -2 -1 -1
III -7 -6 -3 -5 3
IV 2 0 -7 -1 -9

1. Use the rule of dominance to simplify the rectangular game with the
following pay-off and solve it graphically.
Player B
1 2 3 4
Player A I 18 4 6 4
II 6 2 13 7
III 11 5 17 3
IV 7 6 12 2
2. Solve the following problem by Gomory’s cutting plane method.
Maximise Z = 200x1+250x2
Subject to 3x1 + 6x2 ≤ 19
2x1+ 2x2 ≤ 10
x1, x2 ≥ 0 and integers.
Nov / Dec 2015
BA 7206
1. Define Pure and Mixed Strategy.
2. When a game is said to have Saddle point?
1. Elaborate Two- person zero sum games in detail.
2. Discuss the steps in Fractional (pure integer) algorithm in detail.
Nov / Dec 2015
BA 9226
1. Define zero sum game.
2. What is a mixed integer programming problem?
1. A company management and the labour union negotiating a new three
year settlement. Each of these has 4 strategies
(i) Hard and aggressive bargaining
(ii) Reasoning and logical approach
(iii) Legalistic strategy
(iv) Conciliatory approach
The cost to the company is given for every pair of strategy choice.

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 I II III IV
I 20 15 12 35
II 25 14 8 10
III 40 2 10 5
IV -5 4 11 0
What strategy will the two sides adopt? Also determine the value of
the game.
2. Solve the game after reducing it to a 2 X 2 game
Player B
B1 B2 B3
Player A A1 1 7 2
A2 6 2 7
A3 5 1 6

April / May 2015

BA 7206
1. While using IPP technique, what is the fractional part of -98/19?
2. Differentiate between pure and mixed strategies.
1. Find the optimum integer solution to the following LPP
Maximise Z = 3x1+7x2
Subject to 3x1 + 4x2 ≤ 19
3x1+ 6x2 ≤ 21
x1, x2 non – negative integers
2. State the rules of dominance
Solve the following game
Player B
B1 B2 B3
Player A A1 1 7 2
A2 6 2 7
A3 5 1 6

May / June 2014

BA 7206
1. Write fractional cut constraint for the source row x1+1/3s1-2/3s2= 1/3
2. What is saddle point in a game?
1. Find the optimum integer solution to the following LPP
Maximise Z = 7x1+9x2
Subject to x1 + 3x2 ≤ 6
7x1+ x2 ≤ 35
x1, x2 ≥ 0 and integers.

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 2. Solve the following game
Player B
B1 B2 B3
Player A A1 3 -2 4
A2 -1 4 2
A3 2 2 6

May / June 2014

BA 9226
1. Distinguish between pure and mixed integer programming problems.
2. Define saddle point and value of the game.
1. Derive the relation for Gomory’s constraint.
2. Player I secretly choose one of the numbers 1, 2 and 3 and Player II
tries to guess which. If II guesses correctly, she loses nothing
otherwise, she loses the absolute value of the difference of I’s choice
and her guess. Set up the matrix and reduce it by dominance to a 2
by 2 game and solve.
3. Maximise Z = x1+5x2
Subject to -4x1 + 3x2 ≤ 6
3x1+ 2x2 ≤ 18
x1, x2 ≥ 0 and integers.
Apply the branch and bound procedure.

Nov / Dec 2013

BA 9226
1. Indicate the differences between LPP and IPP.
2. State any two applications of game theory, preferably from
management field.
1. Solve the following problem
Maximise f = 4x1+5x2
Subject to 3x1 + x2 ≥ 20
x1+ 4x2 ≤ 50
3x1+ 2x2 ≤ 70
x1 ≥ 0 and integers, I = 1,2..
2. Derive the relation for Gomory’s constraint for pure integer
programming case.

May / June 2013

BA 9226
1. Indicate the difference between pure and mixed integer programming
problems.
2. What is meant by saddle point of a game?

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 1. Solve the following mixed integer problem by the branch and bound
technique
Maximise Z = x1+x2
Subject to 2x1 +5x2 ≤ 16
6x1+ 5x2 ≤ 30
3x1+ 2x2 ≤ 70
x1 ,x2 ≥ 0 and integers
2. Reduce the following game by dominance and find the game value
Player B
1 2 3 4
Player A I 3 2 4 0
II 3 4 2 4
III 4 2 4 0
IV 0 4 0 8
Nov / Dec 2012
BA 9226
1. Distinguish between pure and mixed integer programming problems.
2. State the conditions for applying graphical solution to games.
1. Solve the following integer programming problem by cutting plane
algorithm
Maximise Z = x1+2x2
Subject to x1 + 2x2 ≤ 12
4x1+ 3x2 ≤ 14
x1, x2 non – negative integers
2. Reduce the following game by dominance and find the game value
Player B
1 2 3 4
Player I 3 2 4 0
A II 3 4 2 4
II 4 2 4 0
I
IV 0 4 0 8

May / June 2012

BA 9226
1. Differentiate between pure and mixed integer programming problem.
2. Define saddle point.
1. Maximise Z = 5x1+7x2
Subject to -2x1 + 3x2 ≤ 6
6x1+ x2 ≤ 30
x1, x2 ≥ 0 and integers.
2. Solve the following 2 X 5 game graphically
-5 5 0 -1 8
8 -4 -1 6 -5

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Aug / Sep 2011
BA 6122
1. State the principle of dominance.
1. Solve the following integer programming for optimality
Maximise Z = 8x1+6x2+10x3
Subject to
8x1+4x2+2x3 ≤ 155
3x1+6x2+12x3 ≤ 135
x1 , x2 and x3 ≥ 0 and integers.
2. Consider the following 4 X 4 game players A and B and solve it
optimality
Player B
1 2 3 4
Player A I 1 4 8 16
2
II 4 -2 2 24
III 4 6 6 18
IV 1 4 1 20
0 2
3. Consider the payoff matrix of player A as shown below and solve it
optimality using graphical method.
4 2 5 -6 6
7 -9 7 4 8
Nov / Dec 2010
BA 6122
1. What is zero one programming problem?
2. What do you understand by the term value of the game?

1. Find the optimal integer solution to the LPP

Maximise Z = x1+x2
Subject to 3x1+2x2 ≤ 5
x2 ≤ 2
x1,x2 ≥ 0 and are integers
2. Explain a) Two person zero sum game and b) Pure and mixed
strategies
3. Solve the following game using dominance property
Player B
B1 B2 B3
Player A1 1 7 2
A A2 6 2 7
A3 5 1 6

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 UNIT 4 INVENTORY MODELS, SIMULATION AND DECISION THEORY

May/ June 2016

BA 7206
1. What is a decision tree?
2. Find EOQ if annual demand 15000 units, ordering cost Rs.125 /
order and carrying cost Rs.15/ unit / year.
1. Annual demand for an item is 6000 units. Ordering cost is Rs.600 per
order. Inventory carrying cost is 18% of the purchase price/unit/year.
The price breakups are as shown below:
Quantity Price (in Rs.) per unit
0≤ Q1≤ 2000 20
2000 ≤ Q2 ≤ 4000 15
4000 ≤ Q3 9
Find the optimal order size.
2. A newspaper boy has the probabilities of selling a magazine as shown
in table.
No. of copies sold 9 10 11 12 13 14
Probability 0.05 0.1 0.15 0.3 0.25 0.15
The cost of a copy sold is Rs.30 and the sale price of the magazine is
Rs.40. the unsold copies fetch a salvage value of Rs.5 in the second
sale market. How many copies should be ordered to maximise the
gain? Use EOL criterion to solve the problem.
May / June 2016
BA 9226
1. What are decision trees?
2. Brief about Simulation.
1. A farmer wants to decide which of the three crops he should plant on
his acre farm. The profit from each is dependent on the rainfall during
the growing season. The farmer has categorized the amount of rainfall
as high, medium and low. His estimated profit for each is shown in
the table below.
Estimate the conditional profit (Rs)
Rain fall Crop A Crop B Crop C
High 8000 3500 5000
Medium 4500 4500 5000
Low 2000 5000 4000
If the farmer wishes to plant only one crop decide which should be his
crop using
(i) Maximax Criterion
(ii) Maximin Criterion
(iii) Hurwicz criterion (farmer’s degree of optimism being 0.6)
(iv) Laplace criterion

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May / June 2016
BA 7206
1. Describe the steps involved in simulation.
2. What are the various methods available for assessing decision
under uncertainty?
1. Annual demand for an item is 6000 units. Ordering cost is Rs.600
per order. Inventory carrying cost is 18% of the purchase
price/unit/year. The price breakups are as shown below:
Quantity Price (in Rs.) per unit
0≤ Q1≤ 2000 20
2000 ≤ Q2 ≤ 4000 15
4000 ≤ Q3 9
Find the optimal order size.
2. A factory manufactures four types of products the fixed cost and
the variable cost for which is given in the following table:
Product Fixed Cost Rs. Variable cost per unit Rs.
A 30000 15
B 40000 12
C 50000 9
D 60000 6
The demand for each product is likely to be as follows for various
situations
Adverse: 4000 units, Moderate: 8000 units, Best: 12000 units
If the sale price for each unit is Rs.25 prepare the payoff table and
evaluate best product strategy using (i) Laplace criterion (ii)
Pessimistic Criterion (iii) Optimistic criterion (iv) Hurwicz criterion
when α = 0.4 and (v) savage criterion.
Nov / Dec 2015
BA 7206
1. Give the definition of Decision Tree.
2. List the costs of Inventory systems.
1. Explain the types of deterministic models of inventory system in
detail.
2. Discuss about Monte-Carlo simulation in detail.
Nov / Dec 2015
BA 9226
1. What are the steps involved in decision making analysis?
2. What are the types of inventory?
1. The annual demand for a product is 100000 units. The rate of
production is 200000 units per year. The set-up cost per production
run is Rs.5000 and the variable production cost of each item is Rs.10.
the annual holding cost per unit is 20% of its value. Find the optimum
production lot size and the length of the production run.
2. A manager has a choice between

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 (i) A risky contract promising Rs.7 lakhs with probability 0.6 and
Rs.4 lakhs with probability 0.4 and
(ii) A diversified portfolio consisting of two contracts with
independent outcomes each promising Rs.3.5 lakhs with
probability 0.6 and Rs.2 lakhs with probability 0.4.
Using the EMV criteria suggest a contract.
April / May 2015
BA 7206
1. List the elements of carrying cost.
2. What do the terms “uncertainty” and “risk” refer?
1. Derive EOQ formula for simple inventory model with no shortages and
instantaneous replenishment.
2. Find the optimum order quantity for a product for which the price
break is given below
Quantity Price (in Rs.) per unit
0≤ Q1≤ 100 20
100 ≤ Q2 ≤ 200 18
200 ≤ Q3 16
The monthly demand for the product is 400 units. The shortage cost
is 20% of the unit cost of the product and the cost of ordering is
Rs.25.
3. Concisely explain the criterions used to assist decision making under
uncertainty.
May / June 2014
BA 7206
1. What is reorder level?
2. What are random and pseudo random numbers?
1. A company currently replenishes its stock of a certain item by
ordering enough supply to cover one month demand. The annual
demand of the item 1500 units. It is estimated that it costa Rs.20/
every time an order is placed. The holding cost per unit per month is
Rs.2/ and not shortage is allowed. Determine the optimal order
quantity and the time between orders. Also find the differences in
annual inventory costa between the optimal policy and the current
policy of ordering one month supply 12 times a year.
2. The demand of a computer monitor cable is 1050 cables per month
and shortages are allowed. If the cost of making one purchases is
Rs.700/, holding cost of one cable is Rs.3/per year and the cost of one
shortage is Rs.50/ per year, determine optimum purchase quantity
and optimum number of shortages.
3. A tourist car operator finds that during the past few months the car’s
use has varied so much that the cost of maintaining the car varied
considerably. During the past 200 weeks the demand for the car

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 fluctuated as below, using random numbers simulate the demand for
a 20 weeks period and estimate average demand.
Trips per 0 1 2 3 4 5
week
Frequency 16 24 30 60 40 30

May / June 2014

BA 9226
1. List out various elements of holding (carrying) cost.
2. Mention the advantages of simulation.
1. A company uses 12,000 components a year. Order costs have been
estimated to be Rs.500 per order and inventory holding cost is
estimated at 20% of the cost of a component per year. If the supplier
offers the following quantity discount structure what will be the
optimal order quantity?
Order quantity Cost (per unit)
Rs.
0-4,999 5
5,000-9,999 5 less 5%
10,000 – 19,999 5 less 10%
20,000 and 5 less 15%
above
2. Derive the relation for economic production quantity with shortages.
3. The cost of the machine is Rs.6100 and its scrap value is Rs.100 at
the end of every year. The Maintenance Costs (MC) found from
experience are as follows:
Year 1 2 3 4 5 6 7 8
M.C 100 250 400 600 900 1200 1600 2000
When should the machine be replaced?

Nov / Dec 2013

BA 9226
1. Mention the assumptions in derivation of EOQ derivation.
2. Define simulation and state two reasons for its use in management.
1. An item is produced at the rate of 600 bottles per day and the demand
is at the rate of 150 bottles per day. The cost per bottle is Rs.6. the set
up cost is Rs.90 per run and the holding cost is 20 % of the cost per
annum. Derive the relation for to find out the economic lot size under
given conditions and determine the same. Also find the number of
inventory cycles.
2. The Princeton Soup Company buys 90000 containers each year from
the Trenton Can Company. The ordering cost is Rs.90 the carrying
cost per container per year is assumed to be 20% of the unit price.
The discount price schedule is as follows

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 Order quantity Cost (per unit) Rs.
1 to 10000 0.45
10000 to 20000 0.38
20000 0.35
Assuming instantaneous delivery find 1) EOQ 2) Optimum total Cost
3) Number of orders per year 4) Time between orders.
3. Explain the process of simulation.
4. With the help of an example explain the use of decision trees.

May / June 2013

BA 9226
1. What are the costs considered while using EOQ formula?
2. List down the steps of decision tree analysis.
1. Find the optimum order quantity for a product for which the price
break is given below
Quantity Unit Cost Rs.
0 ≤ q ≤ 500 1000
500 ≤ q ≤ 750 925
750 ≤ q 875
The monthly demand for the product is 200 units. Storage cost is 2%
of the unit cost and the cost of ordering is Rs.25.

Nov / Dec 2012

BA 9226
1. What are decision trees?
2. Brief about simulation.
1. During the past year a bank has recorded receipts and payments
patterns as follows:
Receipts in Probability Payment in Probability
Lakhs Lakhs
3 0.2 4 0.3
5 0.3 6 0.4
7 0.4 8 0.2
12 0.1 10 0.1
Use the following random numbers and stimulate the receipts and
payments of the bank for 12 weeks taking the opening balance as Rs.8
lakhs.
Receipts 20 74 94 22 93 45 44 16 4 32 3 62
Payments 25 38 57 93 40 37 57 66 37 49 42 3

2. A company would like to manufacture and sell three types of

perfumes. The company can produce 20,000 units, 10,000 units and
2,000 units of all the three perfumes. Pay off matrix that all the
quantities are sold is as follows.

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 Expected Sales 20000 10000 2000
Type of perfume
I 250 15 10
II 40 20 5
III 60 25 3
Determine the production quantity for each perfume under following
Criteria i) Maxi-min ii0 Maxi-max iii) Mini - max regret iv) Laplace

May / June 2012

BA 9226
1. Define decision trees.
2. What is meant by Quantity discount models?
1. A company has a demand of 12,000 unit / year for an item and it can
produce 2,000 units per month. The cost of one set up is Rs. 400 and
the holding cost / unit / month is Rs. 0.15. Find the optimum lot size
and the total cost per year, assuming the cost of 1 unit as Rs.4. also.
Find maximum inventory, manufacturing time and total time.

UNIT V QUEUING THEORY AND REPLACEMENT MODELS

May / June 2016
BA 7206
1. Find P0 for (M/M/C) : (GD / ∞/ ∞) model if
λ= arrival rate = 18 /hour
µ = service rate = 6 / hour and C = 4
2. Distinguish between breakdown maintenance and preventive
maintenance.
1. There are four booking counters in a railway station the arrival rate of
customers follows Poisson distribution and it is 30 per hour. The
service rate also follows Poisson distribution and it is 10 customers
per hour. Find the following:
(i) Average number of customers waiting in the system.
(ii) Average waiting time of a customer in the system.
2. An electronic equipment contains 500 resistors. When any resistor
fails, it is replaced. The cost of replacing a resistor individually is
Rs.20. if all the resistors are replaced at the same time, the cost per
resistor is Rs.5. the percentage of surviving S (i) at the end of month i
is given in table.
Month i 0 1 2 3 4 5
S (i) 100 90 75 55 30 0
What is the optimum replacement plan?

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May / June 2016
BA 9226
1. What is meant by group replacement policy?
2. List the components of a queuing system.
1. Workers come to tool store room to receive special tools (required by
then accomplishing a particular project assigned to them. The average
time bet two arrivals is 60 seconds and the arrivals are assumed to
follow Po distribution. The average service time (of the tool room
attendant) is 40 sec. Determine
(i) Average queue length,
(ii) Average length of non-empty items,
(iii) Average number of workers in system including the worker
attended,
(iv) Mean waiting time of an arrival,
(v) Average waiting time of an arrival (worker) who waits and
(vi) The type of policy to be established. In other words determine
whether go in for an additional tool store room for the attendant
which minimize the combined cost of attendant’s idle time and
the combined worker’s time. The charge of a skilled worker is
Rs.50 per hour that of store room attendant is Rs.20 per hour.
2. A desktop publisher finds from his previous records that the cost per
year using an ink jet printer whose purchase price is Rs.7000 is as
given below:
Year 1 2 3 4 5 6 7 8
Running 1100 1300 1500 1900 2400 2900 3500 4100
cost (Rs)
Resale 3100 1600 850 475 300 300 300 300
Price
(Rs)

At what age the ink-jet printer should be replaced?

May / June 2016
BA 7206
1. What is replacement theory?
2. Define the following terms: Balking, Reneging and Jockeying.
1. A company has the option to buy one of the mini-computers,
minicamp and chip comp. Mini comp costs Rs.5 lakhs and the
running and maintenance cost are Rs.6000 for each of the first five
years, increasing by Rs.20000 in the sixth and subsequent years.
Chip comp has the same capacity as Mini comp costs only Rs.
250000. However its running and maintenance costs are Rs.12000
per year for the first five years and increases by Rs.20000 per year.

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 If the money is worth 10% per year, which computer should be
purchased? What are the optimal replacement periods for each
computer? Assume that there is no salvage value for either computer.
Explain your analysis for 10 years.
2. Customers arrive at the first class ticket counter of a theatre at the
rate of 12 per hour. There is one clerk serving at the rate of 30 per
hour.
a) What is the probability that there is no customer in the ticket
counter?
b) What is the probability that there are more than two customers in
the counter?
c) What is the probability that there is no customer waiting to be
served
d) What is the probability that one customer is being served and
nobody is waiting?
3. A motorcycle service centre employs four specialist mechanics in the
engine services area. Not all the motorcycle arriving for service require
services in the engine and only those requiring some tuning or
decarbonizing are sent to the engine repair department. The
mechanics can service one motorcycle are registered at a single point
and then directed to any of the four mechanics, in case there is an
engine related problem. The motorcycles requiring engine repair
services arrive at an average rate of 1.5 motorcycles per hour.
Determine the following:
a) The probability that there will be four motorcycle requiring engine
services.
b) The expected number of motorcycles waiting in the queue for
engine repairs.
c) The average time being spent by the motorcycle in waiting for
engine service and in getting engine serviced.
Nov/ Dec 2015
BA 7206
1. What is Queuing Theory?
2. Explain in short Time value of Money.
1. Illustrate the General structure of queuing system in detail.
2. The failure rates of 1000 street bulbs in a colony are summarized in
table.
End of month 1 2 3 4 5 6
Probability of 0.05 0.20 0.40 0.65 0.85 1.00
failure to date
The cost of replacing an individual bulb is Rs.60. if all the bulbs are
replaced simultaneously it would cost Rs.25 per bulb. Any one of the
following two options can be followed to replace the bulbs.

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 (i) Replace the bulbs individually when they fail (individual
replacement policy).
(ii) Replace all the bulbs simultaneously at fixed intervals and
replace the individual bulbs as and when they fail in service
during the fixed interval (group replacement policy).
Find out the optimal replacement policy, i.e individual
replacement policy or group replacement policy? If group
replacement policy is optimal then find at what equal intervals
should all bulbs are replaced?

Nov/ Dec 2015

BA 9226
1. Give examples for single and multichannel models of queues.
2. State the situations resulting in replacement of items / equipment’s.
1. Describe queuing theory in detail.
2. Explain the concept and applications of individual replacement with
time value of money.
April / May 2015
BA 7206
1. In a store with one cashier, nine customers arrive on the average of
every five minutes and the cashier can serve them ten in five minutes.
Find utilization factor.
2. If the money carries an interest rate of 10% per year, what will be the
value of one rupee after two years?
1. A TV repairman finds that the time he spent on his job has an
exponential distribution with mean 30 minutes. If he repairs the act in
the order it arrives and the arrival rate is approximately Poisson, with
an average rate of 10 per 8 hour day, what is the expected idle time of
repairman each day? How many jobs are ahead of average before the
job just brought in?
2. A telephone exchange has two long distance operators. The telephone
company finds that during the peak load long distance calls arrive in a
Poisson fashion at an average rate of 15 per hour. The length of
service on these calls is approximately distributed with mean 5
minutes.
i) What is the probability that subscriber will have to wait for his
long distance call during the peak hours of the day?
ii) If the subscriber will wait and be serviced in turn, what is the
expected waiting time in queue?
3. A machine costs Rs.15000 and its running costs for different years are
given below. Find optimum replacement period if the capital is worth
10% and the machine has no salvage value.

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 Year 1 2 3 4 5 6 7
Running 2500 3000 4000 5000 6500 8000 10000
cost Rs.

May / June 2014

BA 7206
1. Give Kendall’s notation of a queue.
2. What is group replacement policy?
1. Customers arrive at a one window drive-in bank according to Poisson
distribution with mean 10 per hour. Service time per customer is
exponential with mean 5 minutes. There are three spaces in front of
the window, including that for the car being serviced. Other arriving
cars wait outside these three spaces.
i) What is the probability that an arriving customer can enter one
of the three spaces in front of the window?
ii) How long is an arriving customer expected to wait in the queue.
2. A petrol station has two pumps. The service time follows the
exponential distribution with mean 6 minutes and cars arrive for
service in a Poisson process at the rate of 14 cars per hour. Find the
probability that a customer has to wait for service. What is the
average time of customers in queue?
3. The following failure rates have been observed for a certain type of
light bulbs:
End of week 1 2 3 4 5 6 7
Probability of failure 0.05 0.13 0.25 0.43 0.68 0.88 0.96
of date
The cost of replacing an individual failed bulb is Rs.12.5/-. The cost of
group replacement is Rs.3/- per bulb. Determine whether individual
replacement or group replacement is best suited for this situation.

May / June 2014

BA 9226
1. What are the reasons behind queue formation?
2. What is the need for replacement?
1. The cost of the machine is Rs.6100/- and its scrap value is Rs.100 at
the end of every year. The Maintenance Cost (M.C) found from
experiences are as follows:
Year 1 2 3 4 5 6 7 8
M.C 100 250 400 600 900 1200 1600 2000
When should the machine be replaced?
2. In a dairy barn there are two water troughs (i.e drinking places). From
each trough only one cow can drink at the same time. When both
troughs are occupied new arriving cows wait patiently for their turn. It

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 takes an exponential time to drink with mean 3 minutes. Cows arrive
at the water troughs according to a Poisson process with rate 20 cows
per hour.
i) Determine the probability that there are I cows at the water
troughs (waiting or drinking), i= 0,1,2….
ii) Determine the mean number of cows waiting at the troughs and
the mean waiting time.
3. Consider a single server queuing system and derive the relation for
mean service time, average queue length, average number of
customers in the system, average waiting time of the customer in a
queue and average waiting time of the customer in the system.
4. Machine A costs Rs.9000/- annual operating cost is Rs.200/- for the
first year and then increases by Rs. 2000/- every year. Determine the
best age at which the machine should be replaced and what would be
the average cost of owing the machine?
Machine B costs Rs.10000/- annual operating cost is Rs.400 for the
first year and then increased by Rs.8700/- every year. You now have a
machine A which is one year old. Should you replace it with b? If so
when? Assume machines have no resale value and that the future
costs are not discounted.

Nov / Dec 2013

BA 9226
1. With an example write the Kendall’s notation.
2. Why do equipment’s need replacement?
1. Explain the concept of group replacement with the help of examples.
2. A computer costs Rs.5 lakhs. Running and maintenance costs are
Rs.60000 for each of the first five years, increasing by Rs.20000 per
year in subsequent years. Assuming that the value of money is
decreasing at 10% per year and that there is no salvage value for the
computer, find the optimal period for replacement.
3. Babies are born in a sparsely populated state at the rate of one birth
every 12 minutes. The time between births follows an exponential
distributions. Find (1) the average number of births per year, (2) the
probability that no births will occur in any one day, and (3) the
probability of issuing 50 birth certificates in 3 hours given that 40
certificates were issued during the first 2 hours of the 3 hour period.
4. A community is served by two cab companies. Each company owns
two cabs, and the tow companies are known to have equal shares of
market. This is evident by the fact that calls arrive at each company’s
dispatching office at the rate of eight per hour. The average time per
ride is 12 minutes. Calls arrive according to a Poisson distribution
and the ride time is exponential. The two companies recently were

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 bought by an investor who is interested in consolidating them into a
single dispatching office to provide better service to customers.
Analyse the new owner’s proposal.

May / June 2013

BA 9226
1. What are the characteristics considered while designing a queuing
system?
2. What are the two replacement policies considered in group
replacement models?
1. Workers come to tool store room to receive special tools (required by
them) for accomplishing a particular project assigned to them. The
average time between two arrivals is 60 seconds and the arrivals are
assumed to follow Poisson distribution. The average service time (of
the tool room attendant) is 40 seconds. Determine
i) Average queue length
ii) Average length of non-empty items,
iii) Average number of workers in system including the worker
being attended
iv) Mean waiting time of an arrival.
v) Average waiting time of an arrival (worker),who waits and
vi) The type of policy to be established. In other words, determine
whether to go in for an additional tool store room for the
attendant which will minimize the combined cost of attendant
idle time and the cost of worker’s waiting time. The charge of a
skilled worker is Rs.50 per hour and that of store room
attendant is Rs.20 per hour.
2. A desktop publisher finds from his previous records that the cost per
year of using an ink jet printer whose purchase price is Rs.7000 is as
given below:
Year 1 2 3 4 5 6 7 8
Running 1100 1300 1500 1900 2400 2900 3500 4100
cost (Rs)
Resale 3100 1600 850 475 300 300 300 300
Price (Rs)
At what age the ink-jet printer should be replaced?

Nov / Dec 2012

BA 9226
1. Give examples for single and multichannel models of queues.
2. State the situations resulting in replacement of items / equipment’s.
1. Describe queuing theory in detail.

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 2. Explain the concept and applications of individual replacement with
time value of money.

May / June 2012

BA 9226
1. What is meant by multichannel models in queuing theory?
2. Define group Replacement models.
1. On average 96 patients per 24 hour day require the service of an
emergency clinic. Also an average a patient requires 10 minutes of
active attention. Assume that the facility can handle only are
emergency at a time. Suppose that it casts the clinic Rs.100 per
patient treated to obtain an average servicing time of 10 minutes and
that each minute of decrease in their average time would cost Rs.10
per patient treated. How much would have to be budgeted by the
clinic to decrease the average size of queue from 1(1/3) patients to ½
patients?
2. A manufactures is offered two machines A and B. A has cost price of
Rs.2500 its running cost is Rs. 400 for each of the first 5 years and
increase by Rs.100 every subsequent year. Machine b having the
same capacity as A costs Rs.1250 has running cost of Rs.600 for 6
years increasing by Rs.100 per year thereafter. If money is worth 10 %
per year which machine should be purchased? Scrap value of both
machines is negligibly small.

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 UNIT 1 INTRODUCTION TO LINEAR PROGRAMMING

PART A

1. Define Operations research.

OR is the application of scientific methods to complex problems
arising from operations involving large systems of men, machines,
materials and money in industry, business, government and defences.
2. What are the characteristics of OR?
 Its system orientation
 The use of interdisciplinary
 Applications of scientific method
 Uncovering of new problems
 Improvement in the quality of decisions
3. List out the scientific method available in OR.
 The judgement phase
 The research phase
 The action phase
4. Why operation research is necessity for industry?
Complexity, Scattered responsibility and authority, Uncertainty,
Knowledge explosion.
5. List out the scope of OR.
Industry, Defence, Planning, Agriculture, Public Utilities
6. List out the phases of OR.
 Formulating the problem.
 Constructing a model to represent the system under study.
 Deriving a solution from the model.
 Testing the model and the solution derived from it.
 Establishing controls over the solution.
 Putting the solution to work.
7. What are the limitations of operations research?
 Mathematical models are applicable to only specific categories of
problems.
 OR tries to find optimal solution taking all the factors of the
problem into account.
 Bring a new field generally there is a resistance from the
employees to the new proposals.
 Management who has to implement the advised proposals may
itself offer a lot of resistance due to conventional thinking.
8. State some of the applications of OR in marketing.
Product Selection, Competitive strategies, Advertising Strategy.
9. List some of the application of OR in manufacturing.
Inventory Control, Projection Marketing balance, Production
Scheduling & Smoothing.
10. What is linear programming?
Linear programming deals with the optimization of a function of
variables known as objective functions.

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 LP is mathematical technique which involves the allocation of limited
resources in an optimal manner on the basis of a given criterion of
optimality.
11. Write any two situations where L.P.P is applied.
i) The most important function of management is decision making. A
large number of decision problems faced by an executive involve
optimum allocation of scarce resources to various activities with the
objective of increasing profits or decreasing costs or both.
ii) The decision problem becomes complicated when a number of
resources are required to be allocated and there are several activities
to perform. The problem can be well handled by the technique of
linear programming.
iii) Applied for choosing the best alternative from a set of feasible
alternatives.
iv)To help managers in planning, decision making and to allocate the
resources.
12. State the assumption of Linear Programming technique?
Proportionality, Additively, Continuity, Certainty, Finite Choices.
13. When is an LPP preferred to be solved by graphical method?
If the number of variables in any linear programming problem is only
two, one can use graphical method to solve it.
14. What are the essential characteristics of a LP.
 The objective function is of maximization type.
 All constraints are expressed as equations.
 RHS of each constraints is non-negative & All variables are non-
negative
15. Difference between slack, surplus and artificial variables.
Slack Variables: Slack variable represents an unused quaintly of
resources; it is added to less than or equal (<) to type constraints in
order to get an equality constraint.
Surplus Variables: A surplus variable represents the amount by
which solution values exceed a resource. These variables are also
called ‘Negative Slack Variables’. Surplus variables like slack variables
carry a zero coefficient in the objective function. It is added to greater
than or equal to (>) type constraints in order to get an equality
constraint.
Artificial Variables: Artificial variables are added to those constraints
with equality (=) and greater than or equal to (>) sign. An Artificial
variable is added to the constraints to get an initial solution to an LP
problem. Artificial variables have no meaning in a physical sense and
are not only used as a tool for generating an initial solution to an LP
problem.
16. Define Constraints.
A constraints is a kind of restriction on the total amount of a
particular resource required to carry out the activities at various
levels. In a model there will be many such constraints so these
constraints will limit the levels of achievement of different decision
variable.

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 17. What is adjacent basic feasible solution?
A basic solution to a LPP is called as a basic feasible solution if it
satisfies the nonnegative restriction.
There are two types of basic feasible solutions.
Non –degenerate: all m basic variables are positive and remaining n
variables will be zero.
Degenerate: A basic feasible solution is degenerate if one or more
basic variables are zero.
18. Define degenerate solution in LPP.
In the simplex method, if any of the basis variable has a value zero,
then it is termed degeneracy.
19. Define Solution.
A set of variables [X1, X2,… X n+m] is called a solution to L.P problem if
it satisfies the constraints.
20. Define Feasible Solution
A set of variables [X1, X2,,… X n+m] is called a feasible solution to L.P
problem if it satisfies the constraints as well as non-negativity
restrictions.
21. Define optimal basic feasible solution.
It is the basic feasible solution that also optimizes the objective
function.
22. Define unbounded solution.
If the value of the objective function can be increased or decreased
indefinitely, the solution is called unbounded solution.
23. What is the utility of artificial variable in LPP?
Any non-negativity variable which is introduced in the constraint in
order to get the initial basic feasible solution is called artificial
variable.
24. What is dual of a LPP?
For every LPP there is a unique LPP associated with it involving the
same data and closely related optimal solution. / the original problem
is then called the primal problem while the other is called its dual
problem.
25. Define the term infeasible solution in an LPP.
A solution is infeasible if it is meaningless and impractical. In the
graphical solution, this situation is encountered when there is no
common feasible area. In this simplex solution this situation is
encountered when optimality is reached but an artificial variable is in
the basis.
26. Write down the second duality theorem.
Existence theorem states that, if either problem has an unbounded
solution then the other problem has no feasible solution.
27. Write a note on sensitivity analysis.
Sensitivity Analysis which is also known as post-optimality analysis,
is done when there are changes due to unforeseen adverse conditions
after getting the optimal solution to the initial problem. This analysis

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 essentially checks whether the changes affect the optimal solution or
not.
28. What is the principle of duality in LP?
 If the objective function of the primal is to be maximized then
the objective function of the dual becomes minimization and
vice versa.
 For maximization primal with all less than type constraints
there exists a mini dual problem with all greater than type
constraints and vice versa.
 Each constraint in the primal corresponds to a dual variable in
the dual and vice versa.
 The matrix of the coefficients of variables in dual is the
transpose of the matrix of coefficients of variables in primal and
vice versa.
29. Write down the standard form of a LP problem.
Maximize or Minimize Z = C1X1+C2X2+..+Cn Xn
Subject to m constraint
a11x1+a12x2+..+a1jxj+..+amxm (≥= ≤) b1
.
.
.
am1x1+am2x2+..+amjxj+..+amnxm (≥= ≤) bm
in order to find the values of n decision variables X1,X2,… Xn to
maximize or minimize the objective function and the non-negativity
restrictions.
X1,X2,Xn≥ 0
30. What are the advantages of Linear Programming methods?
 It helps in attaining the optimum use of productive factors.
 It improves the quality of decisions.
 It also helps in providing better tools for adjustments to meet
changing conditions.
 It highlights the bottlenecks in the production processes.

Unit 2 Linear Programming Extensions

PART A

1. What is a balanced transportation problem?

If the sum of the supplies of all the sources is equal to the sum of the
demands of all the destinations then the problem is termed as
balanced transportation problem.
2. What is an unbalanced transportation problem?
If the total availability from all origins is not equal to the total demand
of all destinations, then it is called unbalanced transportation
problem.
The transportation problem is balanced if the total availability is equal
to total demand.
An IBFS can be obtained only for balanced transportation problem.

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 3. What is degeneracy in transportation problem?
If the number of occupied cells in a maximum transportation is less
than m+n-1 then it is called degeneracy in a Transportation Problem.
4. What are the conditions to be satisfied to perform optimality
test?
Optimality test can be conducted to any initial basic feasible solution
of a Transportation problem provided such allocations has exactly
m+n-1 non-negative allocations where m is the number of origins and
n is the number of destinations. MODI, Stepping Stone.
5. How is degeneracy handled in MODI model?
Stepping stone method.
6. List three methods for finding IBFS for a TP.
Northwest Corner, Least Cost, Vogel’s Approximation
7. What are advantages of NWC method?
This method is very effective as it provide step by step solution.
It is very simple to obtain optimum solution through this method.
8. Define feasible solution in TP.
Any set of non negative allocation (Xij > 0) which satisfies the row and
column sum is called a feasible solution.
9. How profit maximization TP can be converted to an equivalent
cost minima TP?
The maximization T.P can be converted into minimization T.P by
subtracting all the element in the given profit matrix from the highest
element in that matrix.
10. Where do you apply assignment model? Give an example.
If the manger has to get the best out of the field staff should be
allotted to which territory in order to maximize the returns?
How to get the best schedule for inbound and outbound transport
combinations where the least crew layover time is an important
decision criterion?
Example : Production Planning, Crew layover time and Travelling
Salesman Problem.
11. Define AP. Give two areas of its application.
The problem of assigning the number of jobs to equal number of
facilities (machines or persons or destinations) at a minimum cost or
maximum profit it is called an assignment problem.
If n jobs have to be assigned to n workers or machines with unit cost
or unit time of performing the job, we can use assignment model to
get minimum cost.
Travelling salesmen problem (i.e) a salesman has to visit a number of
cities not visiting the same city twice and return to the starting place.
12. State the objectives of an assignment problem.
To assign a number of tasks (jobs or origins or sources) to an equal
number of facilities (machines or persons or destinations) at a
minimum cost (or maximum profit).
13. What is unbalanced assignment problem?
If the number of rows is not equal to the number of columns in the
cost matrix of the assignment problem or if the cost matrix of the

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 given assignment problem is not a square matrix then the given
assignment problem is said to be unbalanced.
14. Explain Hungarian algorithm.
I. Substract the smallest cost element of each row from all the
elements in the row of the given cost matrix see that each row
contains atleast one zero.
II. Substract the smallest cost element of each column from all the
elements in the column of the resulting cost matrix obtained by step
1.
III. Assigning the zeros.
IV. Apply optimal test.
V. Cover all the zeros by drawing a minimum number of straight lines.
VI. Determine the smallest cost element not covered by the straight
lines. Substract this smallest cost element from all the uncovered
elements and add this to all those elements which are lying in the
intersection of these straight lines and do not change the remaining
elements which lie on the straight lines.
VII. Repeat steps 1 to 6 until an optimum assignment is attained.
15. How do you convert an unbalanced assignment problem into a
balanced assignment problem?
If no.of rows>no.of columns, then add extra one column and set cost
as (0), If no.of columns>no.of rows, then add extra one row and set
cost as (0), then the unbalanced assignment problem is converted into
balanced assignment problem.
16. Differentiate between balanced and unbalanced cases in AP.
If the number of rows (jobs) is equal to the number of columns
(operators), then the problem is termed as balanced assignment
problem otherwise an unbalanced problem.
17. Assignment problem is a special kind of Transportation problem-
Justify.
Assignment problem is a special kind of transportation problem in
which each source should have the capacity to fulfil the demand of
any of the destinations.
In other words any operator should be able to perform any job
regardless of his skills although the cost will be more if the job does
not match with the worker’s skill.
18. What is the relation between assignment and transportation
problems?
The transportation problem deals with the transportation of a product
manufactured at different plants or factories(supply origins)to a
number of different warehouses(demand destinations).The objective is
to satisfy the destination requirement within the plant capacity at
minimum transportation cost.
Given n facilities and n jobs and given the effectiveness of each facility
for each job, the problem is to assign each facility to one only job so as
to optimize the given measure of effectiveness.
Examples:products to factories ,jobs to machines.

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 19. How is a travelling salesmen problem different from an
assignment problem?
Travelling Salesmen problem is that the salesman has to visit various
cities, not visiting twice to the same place and return to the starting
place by spending minimum transportation cost.
In travelling salesman problem we cannot choose the element along
the diagonal and this can be avoided by filling the diagonal with
infinitely large elements.
The problem of assigning the number of jobs to equal number of
facilities (machines or persons or destinations) at a minimum cost or
maximum profit it is called an assignment problem.
20. Give a note on travelling Salesmen problem.
Travelling Salesmen problem is that the salesman has to visit various
cities, not visiting twice to the same place and return to the starting
place by spending minimum transportation cost.
In travelling salesman problem we cannot choose the element along
the diagonal and this can be avoided by filling the diagonal with
infinitely large elements.
21. Briefly explain transshipment problem?
Items are supplied from different sources to different destinations. It is
sometimes economical if the shipment passes through some transient
nodes in between the sources and destinations.
Unlike in transportation problem, where shipments are sent directly
from a particular source to a particular destinations in transshipment
problem the objective is to minimize the total cost of shipment and
thus the shipment passes through one or more intermediate nodes
before it reaches its desired destinations.

UNIT 3 INTEGER PROGRAMMING AND GAME THEORY

PART A
1. Discuss the need for integer programming
In LPP all the decision variable were allowed to take any non-negative
real values as it is quite possible and appropriate to have fractional
values in many solution and which are meaningless in the content of
the actual decisions problem. This is the main reason why IPP is so
important for marginal decisions
2. How does integer programming differ from the linear
programming?
A linear programming problem in which all or some of the decision
variables are constrained to assume non-negative integer values is
called an IPP.
In a linear PP if all variables are required to take integral values then
it is called the pure (all) integer programming problem.
3. What is a mixed integer programming problem?
In a LPP if only some of the variables in the optimal solution are
restricted to assume non-negative integer values, while the remaining
variables are free to take any non-negative values then it is called a
mixed integer programming problem.

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 4. What is Gomory’s fractional cut?
A new constraint introduced to the problem such that the new set of
feasible solution includes all the original feasible integer solution but
does not include the optimum non-integer solution initially found.
This new constraint is called fractional cut or Gomory’s constraint.
5. Write the conditions for a fathomed sub problem of Branch and
Bound technique in IPP.
1. The values of the decision variables of the position are integer.
2. The upper bound of the problem which has non integer values for
its decision variable is not greater than the current best lower
bound.
3. The problem has infeasible solution.
5A. How will you write the fraction (-3/7) in Gomorian constraints?
The fractional part of the negative number -3/7 is given by (-1+ (4/7))
as the number can be expressed.
6. Explain branch and bound technique.
This method is applicable to both, all IPP as well as mixed IPP.
Sometimes a few or all the variables of an IPP are constrained by their
upper or lower bounds. The most general method for the solution of
such constrained optimization problem is called Branch and Bound
method.
7. List the types of IPP?
Pure and mixed
8. What are the basic assumptions of the game?
There are finite numbers of competitors called players.
A list of finite or infinite number of possible course of action is
available to each player.
A game involving n players is called n-person game. In practice two-
person games are of more importance.
9. Define Pure Strategy
If a player known exactly what the other player is going to do, a
deterministic situation is obtained and objective function is to
maximize the gain. Therefore the pure strategy is a decision rule
always to select a particular course of action.
10. What do you mean by mixed strategies?
When maximin not equal to minimax, then pure strategy fails.
Therefore each player with certain probabilistic fixation. This type of
strategy is called mixed strategy.
11. Define payoff in game theory.
The gain resulting from a game is called payoff and when it is
presented in the form of a table it is called payoff matrix.
12. What is value of game?
The value of the game is defined as the expected gain to a player.
13. Differentiate between pure and mixed strategy in game theory.
A strategy is called pure, if one knowns in advance of the play that it
is certain to be adopted irrespective of the strategy of the other may
choose. The optimal strategy mixture for each player may be
determined by assigning to each strategy its probability of being
chosen. These strategies are called mixed strategy.

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 A pure strategy is a special case of mixed strategy. A player may be
able to choose only ‘n’ pure strategies whereas he had infinite number
of mixed strategies.
14. Define Saddle point
A saddle point is apposition in the payoff matrix where the maximum
of row minima coincides with the minimum of column maxima.
15. Explain zero-sum game
A zero sum game is one in which the sum of payment to all the
competitors is zero for every possible outcome of the game is in a
game if the sum of the points won equals the sum of the points lost.
16. What is two person zero sum game?
A game with two players, where the gain of one player equals the loss
to the other is known as a two person zero sum game. It is also called
a rectangular game because their payoff matrix is in the rectangular
form. The characteristics of such a game are
(i) Only two players participate the game
(ii) Each player has a finite number of strategies to use

UNIT 4 INVENTORY MODELS, SIMULATION

AND DECISION THEORY
PART A
1. What is meant by Maximin and Minimax?
Maximin is maximum of row minima, and Minimax is minimum of
column maxima.
2. Define simulation. Why is it used?
The representation of reality in some physical form or in some form of
mathematical equations may be called as
simulation. This is used because it is satisfied with suboptimal results
for decision making.
3. Define random number.
Random number is a number whose probability of occurrence is the
same as that of any other number in the collection.
4. Define pseudo-random number.
Random numbers are called pseudo-random numbers when they are
generate by some deterministic process and they qualify the
predetermined statistical test for randomness.
5. What are the advantages of simulation?
(i) mathematically less complicated and flexible
(ii) modified to suit the changing environments of the real situation
(iii) can be used for training purposes.
6. What are the limitations of simulation?
(i) Quantification of the variables may be difficult.
(ii) Simulation may not yield optimum results.
(iii) Simulation may not always be cheap.
7. What are the uses of simulation?
(i) Inventory problems.
(ii) Queuing problems.
(iii)Training programmers etc

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 8. What are the two types of decisions?
The two types of decisions are
(i) Tactical decision (ii) Strategic decision
9. What are the different types of decision making situations?
Decision making under certainty.
(i) Decision making under uncertainty.
(ii) Decision making under risk.
(iii) Decision making under conflict.
10. What is Expected Monetary Value (EMV)
The conditional value of each event in the payoff table is multiplied by
its probability and the product is summed up.
The resulting number is the EMV for the act.
11. What is Expected Opportunity Loss (EOL)?
The difference between the greater payoff and the actual payoff is
known as opportunity loss.
12. What is Expected Value of Perfect Information (EVPI)?
The expected value with perfect information is the average return in
the long run, if we have perfect information before a decision is to be
made.
13. What are the methods which are useful for decision making under
uncertainty.
(a) Maximax criterion (b) Minimax criterion (c) Maximin criterion
(d) Laplace criterion (e) Hurwicz Alpha criterion

UNIT V QUEUING THEORY

AND
REPLACEMENT MODELS
PART A
1. Define ‘a queue’.
The flow of customers from a finite or infinite population towards a
service facility is called a queue or waiting line.
2. Explain customer’s behaviour.
Balking: A condition in which a customer may leave the queue
because the queue is too long and he has no time to wait or there is
insufficient waiting Space.
Reneging: This occurs when a waiting customer leaves the queue due
to impatience.
Jockeying: Customers may move from one waiting line to another.
Piorities : In certain applications some customers are served before
others regardless of their order of arrival.
3. What are the basic characteristics of a queuing system?
The basic characteristics of a queuing system are
(i) The input process (arrival pattern) (ii) The service mechanism
(service pattern)(iii) The queue discipline (iv) Customer behaviour
(v) System capacity vi) Number of service channels
4. Explain queuing system.

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 A queuing system can be described as composed of customers arriving
for service, if it is not immediate, waiting for service and leaving the
system after being serviced. The queue along with the service facility is
called a queuing system.
5. Define Kendal’s notation for representing queuing models.
A queuing model is specified and represented symbolically in the form
(a/b/c): (d/e)
Where a- inter arrival time
b-service mechanism
c-number of service
d-the capacity of the system
e-the queue discipline
6. Define transient and steady state
A system is said to be in a transient state when its operating
characteristic are dependent on time. When the operating
characteristics of a system are independent of time, then it is in a
steady state.

7. Explain Queue discipline and its various forms.

(i) FIFO or FCFS - First In First Out or First Come First Served.
(ii) LIFO or LCFS - Last In First Out or Last Come First Served.
(iii) SIRO - Selection for service in random order.
(iv) PIR - Priority in selection
8. What are the basic elements of queuing system?
System consists of the arrival of customers, waiting in queue, and
pick up for service according to certain discipline, actual service and
departure of customer.
9. What is meant by queue discipline?
The manner in which service is provided or a customer is selected for
service is defined as the queue discipline.
10. What are the characteristic of queuing process?
Arrival pattern of customers, service pattern of servers, queue
discipline, system capacity, no. of service channels, no. of service
stage.
11. What are the properties of Poisson process?
 The Poisson process is a markov process.
 Sum of two independent poissen processes is a poisson process.
 Difference of two independent poisson processes is not poisson
process.
 The inter arrival time of a poisson process has an exponential
distribution with mean 1/λ.
12. Given any two examples of Poisson process?
1. The number of incoming telephone calls received in a particular
time
2. The arrival of customer at a bank in a day.
13. Give different types of replacement policies.
Individual replacement policy and group replacement policy.

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 14. What are the basic reasons for replacement?
The replacement problems are concerned with the situations that arise
when some items such as men, machines, electric light bulbs etc need
replacement due to their decreased efficiency, failure or breakdown.
15. Distinguish between Breakdown maintenance and Preventive
maintenance
Preventive maintenance
Periodical inspection and service activities which are aimed to detect
potential failures and perform minor adjustments or repairs which will
prevent major operating problems in future.
Breakdown maintenance
It is the repair which is generally done after the equipment breaks
down.
16. What is meant by group replacement policy?
Under this policy, we take decisions as to when all the items must be
placed, irrespective of the fact that items have failed or have not failed,
with the provision that, if any items fails before the replacement time it
may be individually replaced.
17. What is meant by individual replacement policy?
Under this policy, an item is replaced immediately after its failure.
18. What are the types of replacement situations?
i)Replacement of items that deteriorate with time.
ii)Replacement of items which do not deteriorate but fail after certain
amount of use.
19. Define Economic Life of an asset
Any asset will have the following cost components
a)Capital recovery cost (average first cost),computed from the first cost
(purchase price) of the asset.
b) Average operating and maintenance cost.
c) Total cost which is the sum of capital recovery cost and average
operating and maintenance cost.

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