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Question Bank - QTDM

MBA, Human Resource (Anna University)

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BA4201- QUANTITATIVE TECHNIQUES

FOR DECISION MAKING
QUESTION BANK
2023-24 (EVEN SEM)

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UNIT I – INTRODUCTION TO LINEAR PROGRAMMING PROBLEM

PART - A
1. Define a feasible region?
All region in which all the constraints are satisfied simultaneously is called a feasible
region.
2. Define feasible solution?
A solution to the L.P.P which satisfies the non- negativity of the LPP is called feasible
solution.
3. Define an optimal solution?
Any feasible solution which optimizes the objective function is called its optimal solution.
4. Define an unbounded solution?
If the values of the objectives function z can be increased or decreased indefinitely such
solutions are called unbounded solutions.
5. What is the limitation of graphical method? Or write the drawback of graphical
method?
In graphical method we can use only two variables. For more than two variables graphical
method fails so we can use simplex or big- M method.
6. What are the methods to solve LPP?
i. Graphical method
ii. Simplex method
iii. Big M method
iv. Two phase method
v. Dual simplex method

7. What are the Artificial method in L.P.P (or) what are the method used to solve an
L.P.P involving artificial variable?
i. Big - M method or penalty method
ii. Two -phase method

8. Define artificial variable? (Apr/May 2019) (or)

Define the term “Artificial Variables” in LPP? (NOV/DEC 22)
Any non-negative variable which is introduced in the constraints in order to get the
initial basic feasible solution is called artificial variable. (OR)
The artificial variable technique is a device to get the starting basic feasible
solution, so that simplex procedure may be adopted as usual until the optimal solution is
obtained. To solve such LPP there are two methods. (i) The Big M Method or Method of
Penalties. (ii) The Two-phase Simplex Method.

9. What is mean by optimality test in a L.P.P?

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By performing optimality test we can find whether the current feasible solution can
be improved or not. For example, all (z ¿ ¿ i−z j )≥ 0 ¿ is the optimality conditions.

10. State the characteristics of canonical form?

The characteristics of canonical form are
i. The objective function is of maximization type.
ii. The constraints are type.
iii. All variables are non-negative.

11. Define dual of L.P.P

For every L.P.P there is a unique L.P.P associated with it involving the same data
and closely related optimal solution. The original problem is the. Called primal problem,
while the other is called its dual problem.
If the primal problem is Max Z=CX ,
Subject to the constraints AX ≤ b ,and X ≥ 0.

Then the dual form is Min Z=b T Y ,

A Y ≤ C , andY ≥ 0.
T T
Subject to the constraints

12. What are slack and surplus variable (or) define the role of slack and surplus
variable?
Slack variable: The Non variable which is added to LHS of constraints to convert the
inequality ≤ into a equation is called slack variable.
n

∑ aij x i +si=b i ( i=1,2,3 , … … . , m ) , Where si ' s are slack variables.

j=1

Surplus variable: The Non negative variable which is subtracted from the LHS of the
constraints convert the inequality ≥into an equation is called surplus variables.
n

∑ aij x i−si=bi ( i=1,2,3 , … …. , m ) , Where si ' s are surplus variables.

j=1

13. Define linear programming? (APR/MAY 2022), (APR/MAY 2023), (NOV/DEC

23)
Linear programming is defined as the problem of maximizing or minimizing a linear
Function that is subjected to linear constraints.
14. Identify the requirements for a linear programming problem? (APR/MAY2022)
For a problem to be a linear programming problem, the decision variables,
objective function and constraints all have to be linear functions. If all the three conditions
are satisfied, it is called a Linear Programming Problem.

15. What is the procedure for forming a LPP model? (NOV/DEC 22)

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In order to calculate LPP, one must follow the following steps: Formulate the LP
problem. Construct a graph and then plot the various constraint lines. Ascertain the valid
side of all constraint lines.
16. What is Decision making? (APR/MAY 2023)

Decision making is the process of making choices by identifying a decision,

gathering information, and assessing alternative resolutions.

17. State the significance in Simplex method of solving LPP. (NOV/DEC 23)
Simplex method is an approach to solving linear programming models by hand
using slack variables, tableaus, and pivot variables as a means to finding the optimal
solution of an optimization problem. Simplex tableau is used to perform row operations on
the linear programming model as well as for checking optimality.
18. Define sensitivity analysis. (Nov / Dec 2019)
A method of discovering how the optimal solution is altered by changes, within
certain ranges of the objective function coefficients and the right- hand side values.
19. List out the applications of Linear Programming Problem. (Apr/May 2018)
 Engineering – It solves design and manufacturing problems as it is helpful for doing
shape optimization.
 Efficient Manufacturing – To maximize profit, companies use linear expressions.
 Energy Industry – It provides methods to optimize the electric power system.

20. Name the categories of special cases of linear programming. (Apr/May 2018)
Four special cases and difficulties arise at times when using the graphical approach
to solving LP problems: (1) infeasibility, (2) unboundedness, (3) redundancy, and (4)
alternate optimal solutions.

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UNIT II
EXTENSION OF L.P.P
Part A
1. Define a transportation Problem?

It is a Special kind of linear Programming problem in which goods are transported from a
set Sources to a set of destinations such that the total cost of transportation is minimum.

2. Mention various method to find initial basic solution to a transportation Problem.

(i) North -West Corner Rule

(ii) Least cost Method

(iii) Vogel’s Approximation Method (or) VAM Method (or) Penalty Method.

3. Mention the methods for finding the optimal solution for a transportation Problem

(i) MODI's Method

(ii) Stepping Stone Method

4. Mention the types of transportation Problem?

(i) Balanced Transportation Problem.

(ii) Unbalanced Transportation

Balanced T.P. =Total demand = Total Supply

Unbalanced TP= Total demand ≠ Total Supply

5. How will you Problem resolved an unbalanced Transportation problem?

For an unbalanced transportation problem, we add dummy rows or dummy columns with
cost is zero.

6. How will you convert the Maximization transportation problem?

The Maximization Problem can be solved by converting it into maximization Problem by

subtracting all the cell values from the largest all values.

7. Define basic feasible solution of a transportation Problem?

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A feasible Solution is called a basic feasible solution if the number of non-negative

allocation is equal to m+n-1

8. Define a solution of a Degenerate basic feasible Transportation Problem?

If a basic feasible solution contains less than m+n-1 non negative allocation it is said to be
degenerate.

9. Define the Optimal solution to a Transportation Problem? (TP)

The basic feasible Solution to a Transportation Problem is said to be optimal Solution if it

minimizes the total transportation cost.

10. What is the Purpose of MODI's Method?

The Purpose of MODI method is to determine whether the Current basic feasible Solution
of the Transportation Problem is Optimal or Not.

11. Explain how degeneracy in a TP may be resolved?

Degeneracy in a transportation problem may be resolved by adding one empty cell and
having least cost; we allocate a small quantity ϵ¿ 0.

12. What is the objective of travelling salesman problem?

Salesman has to visit various cities or city is visiting twice to the same place and return to
the starting place by spending minimum transportation cost.

13. Write down the basic conditions (or) Route conditions for solving a travelling salesman
problem

Route conditions:

(i) The salesman should go through every city exactly one except the head Quarters.

(ii) The sales man starts from one city and come back to the same city.

14. How will you solve Maximization assignment problem?

The Maximization Problem can be solved by converting it into minimization problem by

subtracting all the values from the largest value.

15. What are the types of Assignment problem in L. P. P?

(i) Balanced Assignment problem

(ii) Unbalanced Assignment problem.

16. What is Balanced Assignment problem?

In assignment problem, if the number of rows is equal to Number of Columns then we can
that, the given Assignment Problem is balanced Assignment problem.

17. What is Unbalanced Assignment Problem? (APR/MAY2023)

In Assignment problem, If the number rows is not equal to number of columns then we
can say that, the given Assignment problem is Unbalanced Assignment Problem.

18. Express the balanced transportation problem in mathematical form. ?

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(NOV/DEC22)
If the demand is equal to supply in a given transportation model, it is called as a
balanced problem

19. What is N-W corner rule in transportation problem? (APR/MAY2022)

The North West corner rule is a technique for calculating an initial feasible solution for
a transportation problem. In this method, we must select basic variables from the upper
left cell.

20. State the mathematical representation of assignment model? (APR/MAY2022)

Any basic feasible solution of an Assignment problem consists (2n–1) variables of
which the (n – 1) variables are zero, n is number of jobs or number of facilities.

21. What is the feasible solution in LPP? (Nov/Dec-2023)

A feasible solution in linear programming is a solution that satisfies all the
constraints of the problem.
22. What do you mean by transshipment in operation research? (Nov/Dec-2023)
Transshipment problems are transportation problems in which a shipment may
move through intermediate nodes (transshipment nodes) before reaching a particular
destination node.
23. What do you mean by crew assignment problem?
It is a typical problem arising in airline crew management consists in optimality
assigning the required crew members to each flight segment of a given time period.
24. When we will face degeneracy transportation problem. (APR/MAY2023)
In a transportation problem, if a basic feasible solution with m origins and n destinations
has less than m +n -1

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UNIT III
DECISION MAKING & GAME THEORY
Part A
1. What two types of decision?
i. Tactical Decision ii. Strategic decision

2. What are two types of Strategies?

i. Pure strategy ii. Mixed strategy

3. What are decision tree? (Apr/May 2023) (Nov/Dec 2023)

A decision tree is a directed tree that represent a decision process. It is useful in
finding optimal decisions for a lengthy Processes.

4. What are the different types of decision making situations?

i. Decision making under certainty
ii. Decision making under uncertainty.
iii. Decision making under risk
iv. Decision making under conflict

5. What are the methods which are useful decision making under uncertainty?
i. Maximax Criterion
ii. Minimax criterion
iii. MaxiMin Criterion
iv. Laplace Criterion
v. Harwicz Alpha Criterion.

6. What is Strategy?
It is a course of Action by a player in a game.

7. Define a Game?
The Competitive situation will be called a game, if it has the following properties.
i. There is a finite number of participants called players.
ii. Each Player has a finite number of strategies
iii. Every game results in on outcomes

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8. Define Pay-off Matrix. (Nov/Dec 2022)

The Grains resulting from a game Called Pay-off and when it is presented in the form
of matrix a matrix. It is called as Pay-off matrix.
9. What are the two strategy in Game Theory?
The two types of strategies in Game theory are (i) Pure Strategy (ii) Mixed Strategy.
10. Define a Saddle Point? (Or) (Nov/Dec 2019)
What is saddle point in game theory? (Apr/May 2023) (Nov/Dec 2023)
A Saddle Point is the Position in the Pay-off matrix, where the maximum row
minima Coincides with the Minimum of Column Maxima.

11. Define Two Person Zero sum game? (Apr/May 2019)

A Game with two players where the gain of one player equals the loss of the other
is known as Two Person Zero Sum game.
12. Define a Value of a Game?
The Value of a game is defined as the Expected Gain to a player.
13. When do you say a game is stable?
A game is stable when there is a saddle point.

14. What is meant by Maximin is Minimax?

Maximin → Maximum of Row Minima
Minimax → Minimum of columns Maxima
15. What are the various methods solution to mixed strategy?
i. Algebraic Method
ii. Arithmatic Method
iii. Graphical Method.
iv. Programming Method.
16. Define Pure and Mixed Strategy? (Apr/May 2018)

(1) If the Game has a saddle point then it is a Pure Strategy

(2) If the Game has no saddle Point then it is a mixed Strategy.

17. What do you mean by Dominance property & Explain the Dominance Rule?

(Nov/Dec 2019)

It is Possible to reduce the size of the Pay-off Matrix by eliminating redundant rows or
Columns.

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If a Game has such redundant rows or Columns those rows and columns dominated by
other rows or columns respectively; Such Property is known Dominance Property.

Dominance Rule:-

i. If all the elements of a row, say k th are less than or equal to the Corresponding
elements of any other rows say rth Row then kth row is dominated by r th row.
ii. Then omit the kth row.
iii. If all the elements of column, say kth are greater than Or equal to the Corresponding
elements of any other column say rth column then kth column is dominated by rth
column.
iv. Omit the column.
v. Repeat procedure, thus procedure is used to reduce the given pay _off matrix.
vi. Linear combination are also used here for reducing the given pay _off.

18. State the statistical decision Analysis? (APR/MAY2022)

Statistical decision theory is a framework for inference for any formally defined
decision- making problem.

19. List the steps in Decision theory approach? (APR/MAY2022)

Step 1: Identify the decision. You realize that you need to make a decision. ...

Step 2: Gather relevant information. ...

Step 3: Identify the alternatives. ...

Step 4: Weigh the evidence. ...

Step 5: Choose among alternatives. ...

Step 6: Take action. ...

Step 7: Review your decision & its consequences

20. Find the Value of a game whose Pay –off Matrix is (68 49).
Solution: Given: (68 49)
Row min= {6,4}, Maxmin=6

Column Max= {8, 9}, Minimax= 8

Maximin ≠ Minimax.

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Saddle point does not exists.

a11 a22−a12 a21 ( 6∗4 )−(9∗8) 24−72 48

Value of a Game = = = = .
( a11 +a22 )−(a 12 +a 21) ( 6+4 )−(9+ 8) 10−17 7

UNIT IV

INVENTORY AND REPLACEMENT

1. What is mean by inventory? (April/May-2023)

Inventory may be defined as the stock of goods, commodities or other economic

resource that are stored or reserved for the efficient running of business affairs. It may be
in the form of raw material, work in progress and finished goods.

2. Mention the types of Inventory? (April/May-2023 &Nov-Dec-2023)

There are three types of inventories.

1. Fluctuation inventories.

2. Anticipated inventories.

3. Lot size inventories.

3. Why we need inventory? (Or) what are the reasons for maintaining Inventory?

 It provides service to the customers at short notice.

 Help in smooth and efficient running of business.
 Production cost is less.
4. What are the cost involving in inventory?

1. Holding cost

2. Shortage cost

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3. Set up cost

5. What is buffer stock?

Buffer stock is the extra stock in excess of the lead time demand to meet out the
demands if any.

6. Define Quantity Discount?

Quantity discounts are the discounts offered for the purchase of large quantities.

7. What is safety stock?

Safety stock is the extra inventory maintained in addition to the inventory required
corresponding to normal consumption rate and is maintained as a protection against stock
out.

8. Write the sample EOQ formula assuming that there is nose shortage.

EOQ formula Q = q* =
√ 2 C3 D
C1

Here D ---> Demand Rate, C3 ---> Set up cost, C1 ---> holding cost.

9. Explain various cost involved in the inventory?

Cost involved in inventories are

a. Set up cost

b. Holding cost

c. Shortage cost

a. Set up cost

Set up cost is the fixed cost associated with obtaining goods through placing of an order
or purchasing or manufacturing or setting up a machinery before starting production. This
include cost of purchase, receiving goods, quality control etc. It is independent of the
quality order.

b. Holding cost

Holding cost consist of record keeping and it includes shortage cost administration cost,
depreciation cost, production cost etc.

c. Shortage cost

Shortage cost is the cost incurred as result of running out of stock.

10. Define lead time and Re-order level.

Lead time

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Lead time is the elapsed time between the placement of order and its receipt in the
inventory.

Re-order Level

Reorder level is the time when the order must be placed by taking into consideration the
interval between placing the order and receiving the supply.

11. What is replacement problem? (April/May-2023)

The problem of replacement is to decide the best policy to determine the age at
which replacement of a machine is must economical instead of continuing at increased
cost.

12. What are the reason for replacement? (or) What are the need of replacement.

 The old item has failed due to accident.

 The old item has become worse or require expensive maintenance.
 The most efficient design of equipment has become available in the market.

13. What are the types of replacement model?

1. Individual replacement model 2. Group replacement model

14. What is meant by individual replacement?

In individual replacement items that are replaced immediately after their failure.

15. What is meant by group replacement policy?

Group replacement policy is the policy in which all items are replaced, irrespective
of whether they failed or not with the provision that if any item fails before the optimal
time. It may be individually replaced.

16. What is present worth factor?

Present worth factor is the present value of ‘n’ years from now,

1
Present Worth Factor = (1+r)-n (or)
( 1+r ¿n )
17. If the rate of interest is9% per annum .Determine the present worth of one rupee
spent after 1 year.

Given r= 9% and n=1

1 1
Present Worth Factor = = =0.917
( 1+r ¿ )
n
( 1+0.09 ¿1 )

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18. . If the rate of interest is 10% per annum .Determine the present worth of one rupee
spent after 2 year.

Given r= 10% and n=2

1 1
Present Worth Factor = = =0.8264
( 1+r ¿ )
n
( 1+0.10 ¿2 )
19. What are the basic replenishment decisions in Inventory control? (NOV/DEC22)

Replenishment is the controlled and regular movement of inventory from an

upstream point on the supply chain to a downstream location that requires sufficient stock
to cover demand. The process of inventory replenishment varies depending on the type of
business and circumstances.

20. State the necessity for maintaining inventory. (APR/MAY2022)

Inventory management refers to the process of ordering, storing, using, and selling
a company's inventory. This includes the management of raw materials, components, and
finished products, as well as warehousing and processing of such items.

21. Classify the categories of replacement study. (APR/MAY2022)

Replacement study can be classified into two categories: (a) Replacement of assets that

Deteriorate with time (Replacement due to gradual failure, or wear and tear of the components of

the machines). This can be further classified into the following types: (i) Determination of
economic life of an asset. (ii) Replacement of an existing asset with a new asset. (b)
Simple probabilistic model for assets which fail completely (replacement due to sudden
failure).

22. Define Progressive failure and random failure in Replacement Models?

(NOV/DEC22)

Progressive failure: If the probability of failure of an item increases with the increase in I
tlife, then such a failure is called progressive failure. For example, light bulbs and tubes
fail progressively.
Random failure: In this class, constant probability of failure is associated with items that
fail from random causes such as physical shocks
23. State the assumptions of replacement model (Nov-Dec-2023)
i) The quality of the output remains constant.
ii) Replacement and maintenance costs remain constant.

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iii) The operational efficiency of the equipment remains constant.

UNIT-V

QUEUEING THEORY AND SIMULATION

Part A
1. Define a queue? (APR/MAY 2023)

The flow of customers from finite or infinite population towards a service facility is
called a queue or waiting line.

2. What are the basic characteristic (component) of a queuing system?

The basic characteristic of a queuing system are

1. Arrival pattern 2. Service pattern

3. Queue discipline 4. Customer behaviour

5. System capacity 6. Number of service channel.

3. Write little formula for queuing system?

λ 1
(i) Lq=Ls- (ii) Wq=WS-
µ µ

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(iii) Ls= 𝛌Ws (iv) Lq= 𝛌Wq

4. Define transient state and steady state?

Transient state : characteristic are dependent on time.

Steady State. : Characteristic are independent of time.

5. Define traffic intensity or utilisation factor ?

It is a important measure in a queuing system.

λ Arrival Rate
Traffic intensity (or) Utilization factor = ρ= =
µ Service Rate

6. What is the utilisation factor for multice server model?

λ
Utilisation factor for Multi server Model= ρ=
sµ

Where s=Number of server

7. Explain queuing system?

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 queuing system.

8. Explain Kendall’s notation in Queueing models? (NOV/DEC22)

Generally Queuing model may be completely specified in the following symbol form.

(a/b/c) : (d/e)

Where

a ----> Arrival pattern

b ----> Service pattern

C ----> Number of service

d ----> Capacity of the system

e ----> Queue discipline

9. What is the formula for Pn under (M/M/1):(∞ / FIFO ¿

For (M/M/1):(∞/ FIFO ¿

Pn = (1- ρ ¿Po

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10. If the arrival follows poison distribution what is the distribution followed by inter
arrival time?

Inter arrival time follows exponential distribution.

11. If the traffic intensity of M/M/I system is given to be 0.76. Find the % of the time the
system would be idle.

Given ρ=0.76

Idle time: 1- ρ

=1-0.76

Idle time=0.24

% of Idle time =0.24x100=24%

12. Define queue discipline?

That queue discipline is the rule determining the formation of the queue. The simplest
queue discipline is first come first served.

13. Explain customer’s behavior?

1. Balking 2. Reneging

3. Jockeying 4. Priorities

Balking: The condition in which a customer may leave the queue because too long and he
has no time to wait.

Reneging: This occurs when a waiting customer leave the queues due to impressions.

Jockeying: Customer may move from one waiting line to another.

Priorities: In certain applications some customers are served before other regardless of
the order of arrival.

14. Define simulation (or) what is simulation?

Simulation is the representation of reality in some physical or mathematical form.

15. What is the use of simulation?

Simulation is used because it is satisfied with sub optimal result for decision making.

16. What are the advantages of simulation?

o Mathematically less complicated

o Flexible
o It can be used for training purposes
o Modified to suit the changing environment.

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17. What are the field simulation is used?

 Inventory problem
 Queueing problem
 Training programmers etc.
18. What are the limitations of simulation?

o Simulation may not always be cheap.

o Simulation may not give optimum result.
o Quantification of the variable maybe difficult.

19. Define random number?

Random number is the number whose probability of occurence is the same as that of any
number in the collection.

20. Name any two method of generating random numbers?

1. Random number table maybe used

2. Using electronic devices.

21. Define Pseudo random number?

Random numbers are called pseudo random number when they or generate by some
deterministic process.

22. What do you mean by Monte Carlo Simulation?( APRIL/MAY -2023&NOV/DEC23))

Monte Carlo simulation involves the selection of random observation with in the
simulation model.

23. State the application areas of queuing system. (APR/MAY2022)

Telecommunication, Transportation. Logistics. Finance. Emergency services.
Computing Industrial Engineering, Project Management.

24. What are the major steps of simulation? (APR/MAY2022)

Project Planning, System Definition, Model Formulation, Input Data Collection &
Analysis. . Model Translation, Verification & Validation, Experimentation & Analysis.

25. What are the advantages of Simulation? (NOV/DEC22)

A model or simulation is only as good as the rules used to create it. It is very
difficult to create an entirely realistic model or simulation because the rules are based
on research and past events.

26. Write the principles of queuing theory? (NOV/DEC23)

A study of a line using queuing theory would break it down into six elements:

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the arrival process, the queue or service capacity, the number of servers available, the
size of the client population, the queuing discipline (such as first-in, first-out), and the
departure process.

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