INSTTUTE FOR TECHNOLOGY & MANAGEMENT

HOME ASSIGHMENT
Q1.A firm is engaged in producing two products, A and B. Each unit of product A
requires 2 kg. of raw material and 4 labour hours for processing, whereas each unit of
product B requires 3 kg.of raw material and 3 hours of labour of the same type for
processing. Each of the products are required to be packed. Every unit of product A and B
requires 1 hour for packaging. Every week, the firm has an availability of 60 kg. raw
material, 96 labour hours and 22 packaging hours. One unit of product A sold yields Rs.
40 and one unit of product B sold gives Rs.35 as profit. Formulate this problem as a
linear programming problem. Determine how many units of each of the products should
be produced per week so that the firm can earn the maximum profit.(Use graphical
method.)
Q2.To simulate interest and provide an atmosphere for intellectual discussion, the finance
faculty in a management school decides to hold special seminars on four contemporary
topics-leasing , portfolio management , private mutual fund , swaps and options. Such
seminars should be held once per week in the afternoons. However, scheduling these
seminar (one for each topic, and not more than one seminar per afternoon) has to be done
carefully so that the number of students unable to attend is kept to a minimum. A careful
study indicates that the number of students who cannot attend a particular seminar on a
specific day is as follows:
Leasing
Portfolio
Private Mutual Swap and
Management
Funds
Options
Monday
50
40
60
20
Tuesday
40
30
40
30
Wednesday
60
20
30
20
Thursday
30
30
20
20
Friday
10
20
10
10
Find an optimal schedule of the seminars, using Hungarian method. Also find out the
number of students who will be missing at least one seminar.

Q3 Casualty Medical officer in a hospital has received four requests for ambulance
van facility. Currently six vans are available for assignment and the estimated
response time (in minutes) are shown in the table below.
Van
1
I
Request
III
14

2
16
II
14
IV

3
15
18
17
13

5
14
12
15
19

13
16
16
17

15
13

17

18

14

Determine which van should respond and what will be the total response
time? If van 1 is not available what would be the optimal solution and total
response time?
Q4. The following table gives the data regarding transportation cost per unit
from different origins to different destinations. Find IBFS by North West
Corner Rule and corresponding total cost.
DESTINATION
ORIGIN
D1
D2
D3
D4
Supply
O1
6
7
3
4
50
O2
7
9
1
2
70
O3
6
5
4
7
80
O4
18
20
16
10
100
Demand 100
50
80
60
Q5.Given below is a table taken from the solution process for a transportation problem :
Distribution centre
Cost per unit (in Rs.)
Factory

10

12

Availability

5000
B

12

5000
13

10
6000

10

Demand

7000
7000

500
5500

4500
12

1500
14

4500

1500
3000

9000

Answer the following questions , giving brief reasoning :

(i)Is this solution feasible ? (ii) Is this solution degenerate ? (iii) Is this solution optimum ?If not ,
find the optimum solution (iv) Does the problem have alternative optimum solution? If yes, find it
Q6. A company has three plants and four warehouses. The supply, demand in
units and the corresponding unit cost of transportation in rupees is given below
Find initial basic solution by VAM and hence find optimum solution by MODI method
and corresponding minimum total cost of transportation.
Plants/Warehouses
P1
P2
P3
Requirement

W1
8
12
9
125

W2
10
9
11
132

W3
7
4
10
140

W4
6
7
8
123

Availability
150
140
230

Q7. A company has the opportunity of marketing a new package of computer games. It has two possible courses of
action: to test market on a limited scale or to give up the project completely. A test market would cost Rs.150,000 and
current evidence suggest that consumer reaction is 3:2 to be positive or negative. If the reaction to the test were to be
positive, the company could either market the computer games nationally or still give up the project completely. Research
suggest that a national launch might result in the following sales:
Sales
high
average
low
Profit (Rs.million) : 1.2
0.3
-0.24
Probability :
0.25
0.60
0.15
If the test marketing were to yield negative result, the company would give up. Giving
up the project at any point would result in a contribution of Rs.80000 from the sale of
copyright etc to another manufacturer. All contributions have been discounted to present
values. Draw a decision tree to represent this situation and recommend a course of action
for the company.

Q8 (a) Solve the following two-person zero sum game after reducing it to
2x2, using dominance rule.
B
B1 B2 B3
A1
3
2
2
A A2
2
7
4
A3
4
3
0
(b) Solve the following two-person zero sum games graphically.
B1
B2
A1 6
3
A2
3
2
A3
1
4
A4 8
1

Q9.(a) Draw the CPM network far a project involving following activities. Number the events according
to Fulkersons rule.
A is the first operation of the project
F and G can be done concurrently, but both must follow A
F must precede H
J cannot begin until both F and G are completed
K is dependent on the completion of both H and J
K is the final operation in the project
(b).The following data gives activity relationship and time estimates. Draw the network
and determine :
(i) C.P & project duration. (ii) Earlier start, earliest finish, Latest start, latest
finish, & total float for each activity , enter the values in a tabular form.
Activity: 1-2
Duration
(days)
8

1-3
5

1-4
13

2-6

3-5

4-5

5-6

5-7

6-8

7-8

8-9

12

Q10. Activity
time (weeks)
1- 2
1-1- 7
1- 3
1-4-7
1- 4
2-2-8
2-5
1-1-1
3-5
2-5-14
4-6
2-5-8
5-6
3-6-15
(i) Draw the project network, (ii) Find the expected duration and variation for each
activity.
(iii) Find S.D of the project length. (iv) What is the probability that projected will be
completed
(a) in 20 weeks or less? (ii) 4weeks earlier than expected? (iii) 3 weeks later than
expected?
(v) what should be the project due date so that probability of achieving it is 95%
(vii) If project due date is 19 weeks , what is the probability of not meeting it?

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