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FALL 2017









1 Define the Linear programming problem in operation Research. Also, explain various assumptions, advantages and limitations of linear programming problem.

A Linear programming problem in operation Research

Assumptions of linear programming problem

Advantages of linear programming problem

Limitations of linear programming problem


Answer: In organisations, managers are required to make judicious use of scarce resources, such as men, materials, machines and capital, to minimise costs and maximise profits. A technique that is used to select the best alternative from a set of feasible ones in situations where


2 a. Discuss the concept of Degeneracy in transportation problem

  1. The ABC Tool Company has a sales force of 25 men who work out from Regional offices. The company produces four basic products lines of hand tools. Mr. Jain, the sales manager, feels that 6 salesmen are needed to distribute product line 1, 10 salesmen are needed to distribute product line 2, 4 salesmen to product line 3 and 5 salesmen to product line 4. The cost per day of assigning salesmen from each of the offices for selling each of the product lines are as follows;
Regional office Product Lines
𝑷𝟏 𝑷𝟐 𝑷𝟑 𝑷𝟒
R1 20 21 16 18
R2 17 28 14 16
R3 29 23 19 20

Now, 10 salesmen are allowed to office R1, 9 salesmen to office R2, and 7 salesmen to office R3.

How many salesmen should be assigned from each office to selling each product line in order to minimize costs?

Degeneracy in transportation problem

Optimum allocation.

Optimum transportation cost


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



3 a. Elaborate the meaning of Simulation.

  1. What are different Practical applications of simulation

A 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,




1 a. Define the meaning of assignment problem in operation Research.

  1. A Departmental head has four subordinates and four task to be performed. The subordinates differ in efficiency and the tasks differ in their intrinsic difficulty. His estimate of the times each man would take to perform each task is given in the following matrix
Tasks Subordinates
A 8 26 17 11
B 13 28 4 26
C 38 19 18 15
D 19 26 24 10

How should the tasks be allocated to subordinates to minimize the total man-hours?

A Description of assignment problem

Optimum allocation through Hungarian method


Answer: a) An assignment problem is a special type of transportation problem. In an assignment problem, the same number of facilities (sources of supply) needs to be allocated to the same number of jobs (points of destinations) so that the transportation cost is minimised or the profit is


  1. Define following criteria’s used for decision making under Uncertainty
  2. Optimism (maximax or minimin) criterion
  3. Pessimism (maximin or minimax) criterion
  4. Equal probabilities (Laplace) criterion
  5. Coefficient of optimism (Hurwicz) criterion
  6. Regret (salvage) criterion


Answer: a) Optimism (maximax or minimin) criterion: Here, the decision maker tries to achieve the largest possible profit (Maximax) or minimum possible cost (minimin). If the entries in the payoff matrix are the one which the decision maker wants as large as possible, for example, profits or sales revenue, he/she selects the alternative that represents the maximum of the maximum



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

  1. 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 cost (Rs.) 900 1200 1600 2100 2800 3700 4700 5900
Resale value (Rs.) 4000 2000 1200 600 500 400 400 400

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 organization



Dear Students,

SMU MBA FALL-2017 Assignments are available. For Booking Kindly mail us on OR call us to +91 9995105420 or S M S your “ Email ID ” us in the following Format  “  On +91 9995105420 we will reach back you with in 24H ”


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