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Case Study

This document provides details for an operations research course, including 8 problems to solve related to topics like linear programming, project management, game theory, and optimization problems. Problem 1 involves determining the optimal number of book types to print to minimize costs. Problem 2 is to solve a linear program using the simplex method. Problem 3 calculates the time an insurance adjuster spends with claimants.

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41 views

Case Study

This document provides details for an operations research course, including 8 problems to solve related to topics like linear programming, project management, game theory, and optimization problems. Problem 1 involves determining the optimal number of book types to print to minimize costs. Problem 2 is to solve a linear program using the simplex method. Problem 3 calculates the time an insurance adjuster spends with claimants.

Uploaded by

Vishnu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Page 1 of 3 Course Code: 19BA06

___________________________________________________________________________
Degree / Branch: PG / MBA Semester: II / Year: I
Course Code & Title: 19BA06 – APPLIED OPERATIONS RESEARCH
CASE STUDY

2. 1. ABC printing company is facing a tight financial squeeze and is attempting to cut costs wherever
possible. At present it has only one printing contract and luckily, the book is selling well in both the
handcover and the paperback editions. It has just received a request to print more copies of this book
in either the handcover or the paper back form. The printing cost for the handcover books is Rs. 600
per 100 books while that for paperback is only Rs. 500 per 100. Although the company is attempting
to economise, it does not wish to lay-off any employee. Therefore, it feels obliged to run its two
printing presses - I and II, atleast 80 and 60 hours per week respectively. Press I can produce 100
hancover books in 2 hours or 100 paperback books in 1 hour. Press II can produce 100 handcover
books in 1 hour or 100 paperbacks books in 2 hours. Determine how many books of each type
should be printed in order to minimize cost. (Use Big M method) CO3 K4

3. Solve the following problem using simplex method. CO2 K3


Maximize Z = 21x1 + 15x2
Subject to
-x1 - 2x2 ≥ -6
4x1 + 3x2 ≤ 12
x1, x2 ≥ 0.

3. An insurance company has three claim adjusters in its branch office. People with claims against the
company are found to arrive in a poisson fashion, at an average rate of 20 per 8 hour day. The amount of
time that an adjuster spends with a claimant is found to have exponential distribution with a mean
service time of 40 minutes. Claimants are processed in the order of their appearance.
i) how many hours a week can an adjuster expect to spend with claimant?
ii) how much time, on an average, does a claimant spend in the branch office? CO2 K3

4. A car washing unit has two cleaning bays manned by a three-man crew. Cars arrive at an average rate
of 10 cars per hour and the arrival rate is poisson distributed. The under chassis cleaning of a car takes
4 minutes on an average and can be assumed to be exponentially distributed. Determine the:
i) Probability that a customer has to wait before being served
ii) Expected percentage of idle time for each bay
iii) What is the expected waiting time for a car? CO2 K3

5. The following are the details of estimated time of activities of a certain


project. CO2 K2
Activity Preceding Activity Activity Duration (Days)
A ---- 2
B A 3
C A 4
D B, C 6
E ---- 2
F E 8
Page 2 of 3 Course Code: 19BA06
(i) Find the critical path and the expected time of the project.
(ii) Calculate the earliest start time and earliest finish time for each activity.
(iii)Calculate the slack for each activity.

6. The three estimates for the activities of a project are given below:

Activity Estimate duration (days)


a m b
1-2 5 6 7
1-3 1 1 7
1-4 2 4 12
2-5 3 6 15
3-5 1 1 1
4-6 2 2 8
5-6 1 4 7
Draw the project network. Find out the critical path of the project and project duration. What is
the probability that the project will be completed at least 5 days earlier than expected? What is
the probability that the project will be completed by 22 days? CO2 K3

7. There are two player X and Y that put a coin (with head or tail up) on the table in such a manner that
it is not shown to other. If both cloins represent head then player X wins Rs. 8, however in case of both
coins represent tails then he/she wins Rs. 1. The player Y wins Rs. 3 if one coin represents head and
other tail, i.e., both coins do not match. There are two options, i.e., being matching player X or non-
matching player Y, find which one would you select and what would be the strategy.
CO3 K3

8. (i)Reduce the following two person zero sum game to 2x2 order and obtain the optimal strategies for
each player and the value of the game. CO3 K4
Player B
B1 B2 B3 B4
Player A A1 3 2 4 0
A2 3 4 2 4
A3 4 2 4 0
A4 0 4 0 8
(ii) Explain method of dominance in game theory. CO1 K2

9. Solve the following assignment problem using Hungarian method. CO3 K4

Jobs
A B C D
P 8 4 2 6
Typist

Q 0 9 5 5

R 3 8 9 2

S 4 3 1 0
Page 3 of 3 Course Code: 19BA06

10. Solve the travelling salesman problem given in the matrix from as shown below. CO2 K3

To
A B C D
P ¥ 46 16 40

From
Q 41 ¥ 50 40

R 82 32 ¥ 60

S 40 40 36 ¥

Course Faculty Director

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