Rashtreeya Sikshana Samithi Trust

R V INSTITUTE OF MANAGEMENT
CA - 17, 36 Cross, 26th Main, 4th T Block, Jayanagar, Bangalore - 560041Ph: 080-26547048
th

Fax: 080-26654920 Website: www.rvim.in Email: contact@rvim.in

Subject: Quantitative Techniques and Operation Research.

Semester II

Name:

Section:

Roll Number

Register Number

Date of Submission

Contents Maximum Marks Date Marks Obtained

Assignments 05

Presentations 05

Attendance 05

Book / Journal Article 05

Review
Signature of the Staff:

1
Assignment problems
1) A company has four factories F1, F2, F3 and F4 manufacturing the same product. Production and raw
material costs differ from factory and are given in the following table in the first two rows. The
transportation costs from the factories to sales depots S1, S2, S3 are given. The last two columns in the table
gives the sales price and the total requirement at each depot. The production capacity of each factory is
given in the last raw.

Sales

F1 F2 F3 F4 Price/unit Requirement

Raw material cost/unit 10 9 12 9

Production cost/unit 15 18 14 13

Transportation S1 3 9 5 4 34 80

cost/unit S2 1 7 4 5 32 120

S3 5 8 3 6 31 150

Production capacity 10 150 50 100

Determine the most profitable production and distribution schedule and the corresponding profit. The
surplus production should be taken to yield zero profit.

Solution: Hint: The profit matrix as given in the problem can be constructed by
using the following equation:

Profit = Sales price – Production cost – Raw material cost – Transportation cost

2
 TO

FROM S1 S2 S3 CAPACITY

F1

F2

F3

F4

DEMAND

TO

FROM S1 S2 S3 CAPACITY

F1

F2

F3

F4

DEMAND

TO

FROM S1 S2 S3 CAPACITY

3
 F1

F2

F3

F4

DEMAND

4
2) A particular product is manufactured in plants P1, P2, P3 and P4 and is sold at three Markets M1, M2 and
M3. The unit production cost and the capacity in units per unit time of the plants are given below.

Plant Production cost per unit Capacity (Units)

P1 120 1000

P2 150 200

P3 110 600

P4 130 800

The selling price per unit and the demand in units per unit time are as follows

Markets Selling Price / Unit Demand (Units)

M1 150 1200

M2 140 1400

M3 160 600

Determine the optimal sales distribution plan.

SOLUTION

5
 Market

Plant M1 M2 M3 CAPACITY

P1

P2

P3

P4

DEMAND

Market

Plant M1 M2 M3 CAPACITY

P1

P2

P3

P4

DEMAND

6
 Market

Plant M1 M2 M3 CAPACITY

P1

P2

P3

P4

DEMAND

7
(3) Solve the following transportation problem to maximize the profit.

Destination
Source A B C D Supply
1 15 51 42 33 23
2 80 42 26 81 44
3 90 40 66 60 33
Demand 23 31 16 30

Solution :

Total Demand = Total Supply =

Destination
Source A B C D Supply

Demand

Destination
Source A B C D Supply

Demand

8
(4) Solve the transportation problem when the unit transportation costs demand and supplies are given.

Destination

Source D1 D2 D3 D4 Supply
O1 6 1 9 3 70
O2 11 5 2 8 55
O3 10 12 4 7 70
Demand 85 35 50 45

Solution :

Total Demand = Total Supply =

Destination

Source D1 D2 D3 D4

O1

O2

O3

9
(5) A product is produced by 4 factories F1, F2, F3 and F4 .Their unit production cost are Rs 2, 3, 1 and 5
respectively. Production capacity of the factories is 50, 70, 40 and 50 units respectively. The product is
supplied to 4 stores S1, S2, S3 and S4, the requirements of which are 25, 35,105 and 20 respectively. Unit
costs of transportation are given below. Find the transportation plan such that the total production
cost is minimum.
SOURCE
FACTORY S1 S2 S3 S4

F1 2 4 6 11

F2 10 8 7 5

F3 13 3 9 12

F4 4 6 8 3

NOTE: TRANSPORTATION TABLE = PRODUCTION + TRANSPORTATION COST

SOURCE
FACTORY S1 S2 S3 S4

F1

F2

F3

F4

SOURCE
FACTORY S1 S2 S3 S4 SUPPLY

F1

F2

F3

F4
DEMAND

10
6) There are three factories A, B and C which supplies goods to four dealers D1, D2, D3 and D4. The
production capacities of these factories are 1000,700 and 900 units per month respectively. The
requirements from the dealers are 900.800,500 and 400 units per month respectively. The per unit return
(excluding transportation cost are Rs 8, Rs 7 and Rs 9 at the three factories. The following table gives the
unit transportation cost from the factories to dealers.

D1 D2 D3 D4
A 2 2 2 4
B 3 5 3 2
C 4 3 2 1
Determine the optimum solution to maximize the total returns.

Solution:

Hint: Profit = Return – Transportation cost.

D1 D2 D3 D4

Since it is Profit maximization we have to convert into Loss matrix

D1 D2 D3 D4 Capacity

Requirement

11
(6) A hotel corporation has three restaurants around the country all of which are standard
drinking (disposable) cups. Three suppliers have been invested to bid on supplying the cups
their bid is as follows:

Suppliers Price in Rs. per 100 Annual capacity

A 9 30,000
B 10 70,000
C 11 1,35,000
The total cost of transportation (in Rupees per 100 cups) varies from each supplier to supplier
as given below:

From Restaurant
1 2 3
A 2 4 1
B 5 3 6
C 3 2 7

The annual requirement of the cups for three restaurants is 30,000, 60,000 and 1, 20,000 respectively.
How many cups should be purchased from each supplier for each restaurant?

Solution:

NOTE: The given problem is a typical transportation problem which

involves minimization of sum of “purchase price and transport cost.”

Generation of transportation table

Supplier Restaurant
1 2 3 Capacity
A 11 13 10 30,000
B 15 13 16 70,000
C 14 13 18 1,35,000
Requirements 30,000 60,000 1,20,000

Requirements = Capacity =

12
Supplier Restaurant
1 2 3

Supplier Restaurant
1 2 3

13
 AIR CREW ASSIGNMENT PROBLEM

1) Prachi Airlines that operates seven days a week has a time table shown below. Crews must have a
minimum lay of 6 hours between flights. Obtain the paring of flights that minimises layover time away
from home For any given pairing the crew will be based at the city that results in the smaller layover.

Flight No Chennai Mumbai Flight No Mumbai Chennai

Departure Arrival Departure Arrival

1 7:00 am 9:00 am 101 9:00 am 11:00 am

2 9:00 am 11:00 am 102 10:00 am 12:00 am

3 1:30 pm 3:30 pm 103 3:30 am 5:30 am

4 7:30 pm 9:30 pm 104 8:00 pm 10:00 pm

For each pair also mention the town where the crew should be based.

Solution: 1) When based at Chennai :

Flight No 101 102 103 104

2) When based at Mumbai:

14
Flight No 101 102 103 104

Flight No 101 102 103 104

15
 4

Flight No 101 102 103 104

16
Flight No 101 102 103 104

17
Flight No 101 102 103 104

18
 Optimum Assignment Table

Flight No Crew Base Lay over time

19
8) Given below is a table taken from solution process of transportation problem.

TO

W1 W2 W3 W4 CAPACITY

FROM

10 8 7 12

F1 5000

12 13 6 10 6000

F2

8 10 12 14 9000

F3

DEMAND 7000 5500 4500 300 20,000

Answer the following questions:

1) Is this solution feasible?

2) Is this solution degenerates?
3) Is this solution optimal? If not find the optimal solution.
4) Does the problem have alternate optimal solution?

Solution:

20
 TO

W1 W2 W3 W4 CAPACITY

FROM

10 8 7 12

F1 5000

12 13 6 10 6000

F2

8 10 12 14 9000

F3

DEMAND 7000 5500 4500 300 20,000

21
 TO

W1 W2 W3 W4 CAPACITY

FROM

10 8 7 12

F1 5000

12 13 6 10 6000

F2

8 10 12 14 9000

F3

DEMAND 7000 5500 4500 300 20,000

22
 Problems on Crashing

The data on direct costs and activity precedence relationships for a project are given below:

Activity Predecessor activity Normal time Crash time Normal cost Crash cost
DAYS DAYS Rs Rs
A - 4 3 1000 1300
B - 7 4 1400 2000
C - 5 4 2000 2700
D A 6 5 1200 1400
E B 3 2 900 1100
F C 11 6 2500 3750
G D,E 4 3 800 1450
H F,G 3 1 300 500
Total 10,100 14,200
1) Draw the project network diagram
2) What completion date would you recommend? Indirect project costs amount to Rs 200 per
day.

23
24
25
6) Find the project duration, standard deviation for the critical path, total float, free float and
independent float for the following data:
Activity Procedure
Time in weeks
a m B
A - 4 6 6

B A 10 12 16

C A 8 12 16

D B 4 8 12

E B 4 6 8

F C,D 4 8 14

G E,F 4 8 12

H B 2 4 6

I H 4 8 14

J G&I 4 6 8

Solution: Calculate the expected time te for Each activity.

Activity Expected time for the activities Weeks te

26
PERT Network Diagram

27
 Activity Standard Deviation

Standard Deviation for the Critical path:

28
 Float analysis- table

Activity Earliest Time Latest Time Float

Duratio
Activity Start Finish Start Finish Total Free Independent
n
ES EF LS LF (LF-ES)-D (EF-ES)- (EF-LS)-D
D
D

1 2 3 4 5 6 7 8 9

29
30
7) Define free float, independent float and total float.

Following table gives activities in a construction project and other relevant information.

Activity 1-2 1-3 2-3 2-4 3-4 4-5

Duration 20 25 10 12 6 10
(Days)

Find the critical path, free float and total float.

Solution: Calculate the expected time te for Each activity.

Activity Expected time for the activities Weeks te

31
PERT Network Diagram

32
 Activity Standard Deviation

Standard Deviation for the Critical path:

33
 Float analysis- table

Activity Earliest Time Latest Time Float

Duratio
Activity Start Finish Start Finish Total Free Independent
n
ES EF LS LF (LF-ES)-D (EF-ES)- (EF-LS)-D
D
D

1 2 3 4 5 6 7 8 9

34
8). A company manufactures 30 units per product. The sale of these items depends upon
demand which has the following distribution:

Sale (units) 27 28 29 30 31 32
Probability 0.10 0.15 0.20 0.35 0.15 0.05

The production cost and sale price of each unit are Rs. 40 and Rs. 50 respectively. Any
unsold product is to be disposed off at a loss of Rs. 15 per unit. There is a penalty of Rs.
5 per unit if the demand is not met. Using the following random numbers, estimate the
total profit/loss for the company for the next 10 days.

Random Numbers: 10, 99, 65, 99, 95, 01,79,11,16 and 20.

If the company decides to produce 29 units per day, what is the advantage or
disadvantage to the company?

Solution:

Sales (Units) Probability Cumulative Random Number

Probability Interval

No of Units manufactured = 30: (With out Considering Penalty)

35
Day Random Simulated Number of Number of
Number units Unsold units short
1

10

36
No of Units manufactured = 30: (Considering penalty)

Day Production ActualProfit on Loss due to Loss due to

Actual the unsold penalty for
Demand Sales units shortage
1

10

37
No of Units manufactured = 29

Day Demand Production Actual Profit on Loss due Loss due to

actual to unsold penalty for
sales units shortage.
1

10

38
9)A book binder has one printing press one binding machine and manuscript of different books.
The time required for performing printing and binding operations for different books are shown
below.

BOOK Printing Time (Days) Binding tine (days)

1 20 25
2 90 60
3 80 75
4 20 30
5 120 90
6 15 35
7 65 50

Decide the optimum sequence of processing of books in order to minimize the total time.

Solution:

Optimum Sequencing table

Book No Idle Time for

(Optimum Printing Binding Binding
Job Sequence) IN PT OUT IN PT OUT

39
10) A machine operator has to perform 3 operations, Turning, Threading & Knurling on three machines A,
B, & C in the order ABC. Find the optimum sequence when the time in hours is given.

Jobs Turning Ai Threading Bi Knurling Ci

1 3 8 13

2 12 6 14

3 5 4 9

4 2 6 12

5 9 3 8

6 11 1 13

Solution: Min of A Max of A

Min of B Max of B

Min of C Max of C

Conclusion:

Analysis:

Let P = (Turning A + Threading B); Let Q = (Threading B + Knurling C)

Jobs P = ( Turning A + Threading B) Q = (Threading B + Knurling C)

40
 Optimum sequencing Table

Sequence Turning A Threading B Knurling C

IN PT OUT IN PT OUT IN PT OUT
of
Jobs

41
11) Solve the following game using dominance property.

Company Y
P Q R S
A 6 -2 4 1
Company X B 6 1 12 3
C -3 -2 -2 6
D 2 -3 7 7

42
12) Machine X costs Rs. 8,000. The operating cost is Rs. 400 for first three years and goes on increasing by
Rs 1500 every subsequent year. Machine Y costs Rs. 10,000. The operating cost is Rs. 500 for first two years
and goes on increasing by Rs. 800 every subsequent year. Determine the best age to replace the machine X
and Y. Which one is more economical to purchase and why? (Assume scrap cost = 0).

Solution:

43
Solution:

Conclusion:

Overall conclusion

44
13) A machine X costs Rs 5000. The maintenance cost is Rs 1000 in the first four year and then it increases
by Rs by 200 in each successive year. Another machine Y costs Rs.8000 whose maintenance cost is Rs 200 in
the first year which increases by Rs 400 in every succeeding year assuming: (1) both the machines have no
salvage value. (2) That the time value of money is 10% p.a. year.(3) Maintenance and operation casts are
incurred in the beginning of each year. Find out what is the optimal replacement time for machine X and
machine Y and which should be preferred?

Solution. Determination of Optimum Replacement Period Machine X.

Year M(t) P.V. Total

Value @ P.V of
 M (t ) C-S TCn Cum. P.V Weighted
10% M(t) Average
1

10

11

12

45
Determination of Optimum Replacement Period for Machine Y:-

P.V. Total
Year M(t) Value @ P.V of
 M (t ) C-S TCn Cum. P.V Weighted
10% M(t) Average
1

10

Conclusion:

46
14) An engineering company is offered a material handling equipment A. A is purchased for Rs 60,000
originally and maintenance cost are estimated to be Ra 10,000 for each of the first 5 years and increasing
every year by Rs 3000 from the sixth and subsequent year. The company expects a return of 10% on all its
investments. What is the optimum replacement period? Assume that maintenance cost incurred at the end
of the year.

Solution:

P.V. Total
Year M(t) Value @ P.V of
 M (t ) C-S TCn Cum. P.V Weighted
10% M(t) Average
(Discount
factor)
1

10

Conclusion:

47
15) A company’s management and labour union are negotiating a new three years settlement. Each party
has four strategies these are:-

I. Hard and aggressive bargaining approach.

II. Reasoning and logical approach.

III. Legalistic approach.

IV Conciliatory approach

Company Strategies
I II III IV
I 20 15 12 35
Union II 25 14 8 10
strategies III 40 2 10 5
IV -5 4 11 0

Company Strategies

I II III IV

I 20 15 12 35

Union II 25 14 8 10

strategies III 40 2 10 5

IV -5 4 11 0

48
16) Solve the following game.

Player B
I II III
A I 6 5 2
II -1 1 -2
III 4 9 6

49
50