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Section A
Multiple Choice Questions (MCQ)
[Please answer ALL the following questions, each question carries TWO marks] (2*10=20 marks)
1. i) True or False:
I. Operations Research is the art of giving bad answers to problems which otherwise have
worse answers.
II. Operations research is the sophisticated name given to a multi-disciplinary problem
oriented approach to the top management problems. It involves the application of non-
scientific methods in situations where executives require description, prediction and
comparison for the purpose of making decisions.
a. I- False, II- True
b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
ii) True or False:
I. A corporate-level strategy helps in achieving objectives by analysing all business
opportunities available to an organisation.
II. A corporate-level strategy is futuristic, innovative and pervasive in nature, and includes
major decisions, such as mergers, takeovers, liquidations and diversification.
a. I- False, II- True
b. I- False, II- False
c. I- True, II- False
d. I- True, II- True
iii) True or False:
I. Forecasting involves analysis of past only
II. Forecasting uses scientific and mathematical techniques.
II. The total time taken for in-house production or for the procurement of a good from an
external source is called ___________.
I. The general Poisson model combines both, arrivals and departures, based on the
assumption that inter-arrival time and service distribution time follow ___________
distribution.
II. While dealing with a queue, the number of people arriving or leaving the queue is not
fixed. This means that the rate of arrival or departure, or the number of people jumping the
queue is a ________ process.
a. I- normal, II- specific
b. I- exponential, II- random
c. I- exponential, II- random
d. I- binomial, II- specific
I. The basis of quality lies in the _______________of the product and the perception of
service.
II. __________________is the degree to which the manufactured product or delivered service
meets the parameters that have been incorporated in the design.
Section B
SHORT ANWER QUESTIONS (5 Marks each)
(Please answer any FOUR questions)
(4*5=20 Marks)
Warehouses W1 W2 W3 W4
Production centres
P1 10 12 8 15
P2 12 14 18 9
P3 15 12 20 16
How many units should an organisation supply to warehouses so that the total transportation
cost is minimised? Calculate Total Transportation Cost