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Master of Business Administration - MBA Semester 2
MB0048-Operations Research-4 Credits
(Book ID: B1631)
Assignment (60 Marks)
Note: Answer all questions within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60
Q1. Describe the framework of Operations Research.
 List the seven stages of Operations Research
 Briefly explain seven stages of Operations Research
Answer. a) The basic dominant characteristic feature of operations research is that it employs
mathematical representations or models to analyze problems. This distinct approach represents an
adaptation of the scientific methodology used by the physical sciences. The scientific method translates
a real given problem into a mathematical representation which is solved and retransformed into the
original
Q2. a. Explain the graphical method of solving LinearProgramming Problem.
b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it
cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in a week. There
are 160 production hours in a week. It requires 0.20 and 0.40 hours to produce a ton of grade X and Y
papers. The mill earns a profit of Rs. 200 and Rs. 500 per ton of grade X and Y paper respectively.
Formulate this as a Linear Programming Problem.
 Explain the concept of linear programming
 Describe the graphical method of solving Linear Programming Problem
 Frame/formulate the LPP (Objective function & Constraints)
Answer. a) Linear programming (LP or linear optimization) is a mathematical method for determining a
way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical
model for some list of requirements represented as linear relationships. The procedure for

2. Q3. a. Explain some of the important terms of the transportation problem.
b. Explain the procedure of MODI method of finding solution through optimality test.
 List and briefly explain some of the important terms of the transportation problem
 Describe the procedure of MODI method.
Answer. a) Degeneracy in transportation problem
If the basic feasible solution of a transportation problem with m origins and n destinations has fewer
than m + n – 1 positive (occupied cells), the problem is said to be a degenerate transportation problem.
Q4. a. Explain the steps involved in Hungarian method of solving Assignment problems.
b. Find an optimal solution to an assignment problem with the following cost matrix:
J1 J2 J3 J4
M1 10 9 7 8
M2 5 8 7 7
M3 5 4 6 5
M4 2 3 4 5
 List the steps in Hungarian method
 Solve/ Compute the solution to the problem
Answer. a). Hungarian method algorithmis based on the concept of opportunity cost and is more
efficient in solving assignment problems. Adopt the following steps mentioned below to solve an AP
using the Hungarian method algorithm:
Q5. a. Explain Monte Carlo Simulation.
b. Hindustan Bakery is popular for its delicious fruit cakes. The table below shows the daily demand
for the bakery’s cakes.
Daily Demand 0 15 25 35 45 50
Probability 0.01 0.15 0.2 0.5 0.12 0.02
Simulate the demand for cakes for 10 days using the following sequence of random numbers:
22, 26, 48, 53, 93, 89, 42, 91, 25, 20

3. If 35 cakes are baked every day in Hindustan Bakery, determine the inventory stock. In addition,
estimate the daily average demand for cakes on the basis of simulated data.
 Explain what is Monte Carlo Simulation and list the steps of of Monte Carlo Simulation
 Solve/ Compute the solution to the problem
Answer. a). Monte Carlo simulation is a computerized mathematical technique that allows people to
account for risk in quantitative analysis and decision making. The technique is used by professionals in
such widely disparate fields as finance, project management, energy, manufacturing, engineering,
research and development, insurance, oil & gas, transportation, and the environment.
Q6. a. State the assumptions of game theory.
b. What are the characteristics of Markov chain?
c. What are the rules for prioritizing jobs?
Answer. a. In game theory one usually makes the following assumptions:
(1) Each decision maker ["PLAYER"] has available to him two or more well-specified choices or
sequences of choices (called "PLAYS").
(2) Every possible combination of plays available to the players leads to a well-defined end-state (win,
loss, or draw) that terminates the game.
Winter-2015
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490