CODE No.

:10BT60301

SREE VIDYANIKETHAN ENGINEERING COLLEGE

(An Autonomous Institution, Affiliated to JNTUA, Anantapur)

III B.Tech II Semester (SVEC10) Supplementary Examinations December - 2014

OPERATIONS RESEARCH
[ Mechanical Engineering ]
Time: 3 hours

Max. Marks: 70
Answer any FIVE questions
All questions carry equal marks

1.

a) Discuss the applications of Operations Research to engineering and managerial problems.

b) An animal feed company must produce 200 kg of a mixture consisting of ingredients X1 and X2
daily. X1 cost Rs. 3 per kg and X2 Rs. 8 per kg. Not more than 80 kg of X1 can be used, and at
least 60 kg of X2 must be used. Find how much of each ingredient should be used if the company
wants minimize cost.

2.

a) What is Hungarian method for solving an assignment problem?

b) Consider the following transportation cost table. The costs are given in rupees; the supply and
demand are in units. Determine an optimal solution.
Source
F1
F2
F3
Demand

3.

W1
40
38
36
320

Destination
W3 W4 W5
26
38
30
34
34 198
24
28
30
400 240 480

W2
36
28
38
320

a) Define E.O.Q. List various costs associated with E.O.Q.

b) Determine the optimal replacement policy for the data given below:
Group replacement cost Rs. 20 per unit.
Cost of individual replacement of failure is Rs. 90 per unit.
Total number of units in a system is 1000 units.
Mortality data of units to be used in the system is as follows:
Interval of time period (hours)
0 - 200
200.01 - 400
400.01 - 600
600.01 - 800
800.01 - 1000

4.

Supply
320
560
480

Probability of failure
0
0.06
0.30
0.48
0.16

a) Explain briefly how the replacement problems are classified.

b) Fleet of cars have increased their costs as they continue in service due to increased direct
operating cost (gas and oil) and increased maintenance (repairs, tyres, batteries, etc..).The initial
cost is Rs.3,50,000 and the trade in value drop as time passes until it reaches a constant value of
Rs.40,000.Given the cost of operating, maintaining and the trade in value, determine the proper
length of service before cars should be replaced.
Years of service
Year end trade in value (Rs.)
Annual operating cost (Rs.)
Annual maintaining cost (Rs.)

1
2,90,000
11,500
3,000
1

2
3
4
2,10,000 1,50,000 1,10,000
12,800
13,600
14,000
5,000
8,000
12,000

5
40,000
15,000
15,000

5.

a) Define the terms: Total, Free and Independent floats.

b) Tasks A, B, C, , H, I constitute a project. The precedence relationships are A < D; A < E;
B < F; D < F; C < G; C < H ; F < I ; G < I.
Draw a network diagram to represent the project and find the minimum time of completion of the
project when time, in days, of each task is as follows:
Task
Time

A
8

B
10

C
8

D
10

E
16

F
17

G
18

H
14

I
9

Also identify the critical path.

6.

a) Derive the expression for EOQ and state the assumptions made.
b) The annual demand for a product is 64,000 units. The buying cost per order is Rs.10 and the
estimated cost of carrying one unit in stock for a year is 20%. The normal price of the product is
Rs.10 per unit. However, the supplier offers a quantity discount of 2% on an order of at least
1000 units at a time and a discount of 5%, if the order is for at least 5000 units. Suggest the
most economic purchase quantity per order.

7.

a) Indicate the difference between decision making under risk and uncertainity in
Statistical Decision Theory.
b) A manufacturing company has to select one of the two products A and B for manufacturing.
product A requires an investment of Rs. 20,000 and product B Rs. 40,000. Market research
survey, which shows high, medium and low demands with corresponding probabilities and sales
earnings in thousands of rupees for the two products, is given in table. Construct an appropriate
decision tree. What decision should the company take?
Market
High
Medium
Low

8.

Probability
A
B
0.4
0.3
0.3
0.5
0.3
0.2

Sales
A
50
30
10

B
80
60
5

a) Define: i) Pure Strategy ii) Mixed Strategy and iii) Saddle Point.
b) Obtain the optimal strategies for both persons and the value of the game whose pay-off matrix is
as follows:
Player B
Player A
B1
B2
B3
B4
B5
B6
A1
4
2
0
2
1
1
A2
4
3
1
3
2
2
A3
4
3
7
-5
1
2
A4
4
3
4
-1
2
2
A5
4
3
3
-2
2
2