2018Assignment BBA402
2018Assignment BBA402
Department of Management
Assignment Schedule & Assessment Sheet
BBA IVth SEMESTER: 2017-2018
BBA402: Operation Research
Assignment Date: 17 March 2018 Submission Date: 25 March 2018
NOTE: Students are required to read the following instructions carefully before answering.
Students must begin each answer from a fresh page.
Assignments without “Front page as per given format” attached with this “Assignment Schedule &
Assessment Sheet” will be rejected.
The assignments received after the last date will be summarily rejected. No further extension is
allowed.
Make sure that answer is comprehensive and to the point covering all the aspects desired in the
question.Assignment will be evaluated on the basis of content, legibility, neatness, segregation of
ideas, correct use of English language, highlighting (bold & underlining) of key words, use of graphic
and tables and logical progression of the argument in your answer on the following dimensions:
Presentation, Content, Coverage, Depth.
# ASSIGNMENT QUESTION/PROBLEM/CASE
Mr. X of ABC Ltd. wants to introduce a new product in the market. He has a choice of two
different research and development plans A and B. A costs Rs. 10 lakhs and has a 40 percent
chance of success whereas B costs. Rs. 5 lakhs with a 30 percent chance of success. In the
event of a success, Mr. X has to decide whether or not to advertise the product heavily or
lightly. Heavy advertising will cost Rs. 4 lakhs but gives a 0.7 probability of full
1 acceptance and 0.3 probability of partial acceptance by the market. Light advertising will
cost Rs. 1 lakh with a probability 0.5 of full acceptance and 0.5 probability of partial
acceptance. Full market acceptance of the product developed as per plan A would be worth Rs.
40 lakhs and as per plan B would be worth Rs. 30 lakhs. Partial acceptance in both the cases
will be worth Rs. 20 lakhs. Which plan should Mr. X adopt and what sort of advertising will be
done for marketing the product? Solve the problem with the help of a decision tree.
2 Do you think the day will come when all decisions in a business unit are made with the
assistance of operation research? Give reasons for your answer.
3 “Decision criteria under situation of uncertainty are governed by the attitude of the decision
maker.” Explain.
4 Define Linear function and linear inequalities. What do we understand by a linear programming
problem? List and explain the assumptions of linear programming problem.
5 What is the standard form of linear programming problem and how do you obtain it? Also discuss
special cases that arise in application of simplex method.
Solve the following LPP:
Maximize Z = 100x + 60y + 40z,
Subject to
6 X + y + z 100,
10x + 4y + 5z 600,
2x + 2y + 6z 300,
And x ≥ 0, y ≥ 0, and z ≥ 0.
Goods to be transported from factories A, B, C and D to warehouse X, Y and Z. the
transportation cost per unit, capacities of the factories and requirements of the warehouses
are given in the following table. Find the distribution with minimum cost.
A B C D Requiremen
7 t
X 15 24 11 12 2000
Y 25 20 14 16 4000
Z 12 16 22 13 7000
Capacity 3000 2500 3500 4000
8 What is meant by unbalanced transportation problem? Explain the method for solving such a
problem with an example.
A department has five employees with five jobs to be performed. The time (in hours) each man
will take to perform each job is given in the folowing matrix:
Jobs Employees
I II III IV V
A 10 5 13 15 16
9 B 3 9 18 13 6
C 10 7 2 2 2
D 7 11 9 7 12
E 7 9 10 4 12
How should the jobs be allocated, one per employees, so as to minimize the total man-hours?
Suggest optimum solution to the following assignment problem and also the maximum sales: