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BCD 206 Management Decision Models

This document provides instructions and questions for a management decision models exam. It includes 5 questions, with the first question being compulsory and students to answer any two other questions. Question 1 has three parts asking students to define management decision models, describe types of mathematical models and solve a linear programming problem to maximize profit from two products. Question 2 provides a linear programming problem to maximize contribution from two types of transformers. Question 3 covers differences between PERT and CPM, steps in PERT, and characteristics of management decision models. Question 4 requires short notes on limitations of linear programming, types of games, saddle points, and importance of game theory. Question 5 defines queuing theory, when queues arise, defines simulation, and discusses advantages

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31 views

BCD 206 Management Decision Models

This document provides instructions and questions for a management decision models exam. It includes 5 questions, with the first question being compulsory and students to answer any two other questions. Question 1 has three parts asking students to define management decision models, describe types of mathematical models and solve a linear programming problem to maximize profit from two products. Question 2 provides a linear programming problem to maximize contribution from two types of transformers. Question 3 covers differences between PERT and CPM, steps in PERT, and characteristics of management decision models. Question 4 requires short notes on limitations of linear programming, types of games, saddle points, and importance of game theory. Question 5 defines queuing theory, when queues arise, defines simulation, and discusses advantages

Uploaded by

parikentyson
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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KIBABII UNIVERSITY COLLEGE

(KIBUCO)
MAIN CAMPUS
UNIVERSITY EXAMINATIONS
2014 /2015 ACADEMIC YEAR

SECOND YEAR FIRST SEMESTER EXAMINATIONS

MAIN EXAMINATION

FOR THE DEGREE


OF

BACHELOR OF COMMERCE

COURSE CODE: BCD 206

COURSE TITLE: MANAGEMENT DECISION MODELS

DATE: 22ND JANUARY 2015 TIME: 3.00-5.00 P.M.

INSTRUCTIONS TO CANDIDATES:

Answer Question ONE and any other Two Questions

TIME: 2 Hours

1
QUESTION 1 (30 MARKS) COMPULSORY

a) What do you understand by the team Management Decision Models? (5 marks)


b) (i) Describe the various differences between the types of mathematical models that you
know (5 marks)
ii) Discuss the various classifications of models (5 marks)

c) A company manufactures two products A and B. These products are processed in the
same machine. It takes 10 minutes to process 1 unit of product A and 2 minutes for each
unit of product B and the machine operates for a maximum of 35 hours in a week.
Product A requires 1 kg and B 0.5Kg of raw material per unit, the supply of which is 600
kg per week.
Market constraints on product B is known to be 800 units every week product A costs
Kshs 5/= per unit and sold at Kshs 10/=. Product B costs Kshs 6/= per unit and can be
sold in the market at a unit price of Kshs8/=. Determine the number of units of A and B
per week to maximize the profit. (15 marks)

QUESTION 2

Electrical Equipment Ltd is engaged in the production of power transformers and traction
transformers. Both of these categories of transformers pass through three basic processes Viz
core-preparation, core –to-coil assembly and processing (Vapour phase drying). The power
transformer yields contribution of Kshs 10,000. The time required in terms of hours for each of
the process is shown below.

Power Transformers Traction


Transformers

Core-preparation 75 15

Core-to-coil Assembly 160 30

Vapour-phase drying 45 10

The capacity of the core-building shop, Assembly shop and Vapour Phase drying equipments are
as under

Process Available Capacity (HIS)

Core-preparation 1000

Core-to-coil Assembly 1500

2
Vapour –Phase drying 750

Required

Develop a linear programming Model for the above product to solve for maximization of
contribution. (20 marks)

QUESTION 3 (20 MARKS)

i. Briefly describe the differences between PERT and CDM in relation to the Historical
point of view and emphasis in application (6 marks)
ii. Discuss the essential steps involved in the application of PERT (6 marks)
iii. Discuss the four major characteristics of a management decision Model giving
relevant examples (12 marks)

QUESTION 4 (20 MARKS)

Write short notes on the following

i. Limitations of Linear Programming (5 marks)


ii. Types of games (5 marks)
iii. The saddle Point (5 marks)
iv. Importance of Game theory in Management decision making process (5 marks)

QUESTION 5

a) What is Queuing theory? (4 marks)


b) When do Queues arise? Explain using an example. (2 marks)
c) What is simulation? (2 marks)
d) Discuss the advantages and the disadvantages of simplex method in Management
Decision Making process (6 marks)
e) Discuss the areas of application where Monte Carlo simulation has been used (6 marks)

END

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