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Master of Business Administration - MBA Semester 2

MBA205-Operations Research

Set - 1

Q1. Explain Various Assumptions of linear programming.

Linearity

Continuity

Independence and additivity

Proportionality

Answer. Assumptions of linear programming

Assumptions are the conditions that need to be present for conducting an experiment or applying a
formula. For using the linear programming tool to solve a problem, it is necessary for the problem to
fulfil all the conditions (or assumptions) of linear programming.

Q2. Write short note on

a. Concept of Duality in Linear Programming problem. 2.5

b. North-West Corner Method in Transportation problem 2.5

c. Benefits of holding inventory 2.5

d. Economic Order Quantity (EOQ) model 2.5

Answer. Duality in Linear Programming

For every Linear programming Problem, there is a corresponding unique problem involving the same
data and it also describes the original problem. The original problem is called primal programme and
the corresponding unique problem is called Dual programme. The two programmes are very closely
related and optimal solution of dual gives complete information about

Q3. a. What is degeneracy in transportation problem?

b. Solve the following transportation problem using Vogel’s approximation method.

 Factories Distribution Centres Supply
C1 C2 C3 C4
F1 3 2 7 6 50
F2 7 5 2 3 60
F3 2 5 4 5 25
Requirements 60 40 20 15

Degeneracy in transportation problem and resolving it - 5

Computation/Solution to the problem - 5

Answer. a) Degeneracy in transportation problem

A basic solution to an m-origin, n destination transportation problem can have at the most m+n-1
positive basic variables (non-zero), otherwise the basic solution degenerates. It follows that
whenever the number of basic cells is less than m + n – 1, the transportation problem is a

Set - 2

Q1. The processing time of four jobs and five machines (in hours, when passing is not allowed) is
given in following table:-

a. Find an optimal sequence for the above sequencing problem.

b. Calculate minimum elapsed time & idle time for machines A, B, C, D & E.

Answer.

Q2. a. Elaborate the meaning of Simulation.

b. What are different Practical applications of simulation?

Meaning of Simulation.
Practical applications of simulation

Answer. a) Simulation is a representation of real-life situations. It is a method in which a replica of a

real-world process or system is developed over a period of time. The simulated model acts in the
same manner as the selected physical or abstract process or system behaves in reality. For example

Q3. a. Explain the importance and utility of the replacement model in business organizations.

b. The maintenance cost and re-sale value per year of a machine whose purchase price is Rs. 7000
is given below:-

Year 1 2 3 4 5 6 7 8
Maintenance 900 1200 1600 2100 2800 3700 4700 5900
Cost (Rs.)
Resale Value 4000 2000 1200 600 500 400 400 400
(Rs.)

Importance and utility of the replacement model Replacement Year.

Answer. a) In an organisation, replacement problems arise when fixed assets, such as machines,
equipment, and other tools, need to be replaced due to reduced efficiency, failure or breakdown.
Sometimes, replacement takes place when more efficient equipment is available in the market or
the maintenance of the existing equipment is incurring a huge cost on an organisation. However, an
organisation needs to decide when the replacement of new equipment would

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