Escolar Documentos
Profissional Documentos
Cultura Documentos
INSTRUCTIONS TO CANDIDATES
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of:
QUESTION 1
QUESTION 2
Interest Rates
Project Decline Stable Increase
Office building 0.6 1.2 4.5
Mall 1.3 1.9 2.5
Condominiums 3.5 1.5 0.4
Warehouse 1.7 1.5 1.0
QUESTION 3
The management of Bank Nasional was concerned about potential loss that might occur in
the event of a physical catastrophe such as a power failure or a fire. The bank estimated
that the loss from one of these incidents could run into million of ringgit due to interrupted
service and customer relations. One project the bank is considering is the installation of an
emergency power generator at its operations headquarters. The cost of the emergency
generator is RM750.000, and if it is installed no losses from this type of incident will be
incurred. However, if the generator is not installed, there is a 10% chance that a power
outage will occur during the next year. If there is an outage, there is a 0.05 probability that
the losses will be very large, or approximately RM90 million in lost earnings. Alternatively, it
is estimated that there is a 0.95 probability of only slight losses of around RM1 million.
Use decision tree analysis to determine whether the bank should install the new power
generator.
(6 marks)
QUESTION 4
Subject to
0.1 X, + 0.3X 2 ^240
X1 + 2X2 < 2000
Xt £ 800
Xi, X2 > 0
(6 marks)
QUESTION 5
A consultant firm has four consultants available to be assigned to four different projects.
Find the assignment of consultants to projects that will minimize the total time (in weeks) to
complete all projects.
Consultant Project
A B C D
Zul 12 10 9 7
Alia 11 10 9 10
Razif 13 9 12 7
Sarah 11 13 10 10
(5 marks)
QUESTION 1
SML Food Industries produces its latest health food product at its three factories. It has
three major customers. The profit per unit (RM), estimated monthly demand and capacity of
each factory are given below.
Factory Customer
X Y Z
A 12 10 7
B 6 9 6
C 6 10 9
a) Use the transportation algorithm to determine the optimal allocation of the health food
product to the customers from the factories in order to maximize the total profit.
Calculate the maximum total profit.
(11 marks)
b) Is the optimal solution in part (a) unique? Explain. If not, obtain an alternative optimal
solution.
(4 marks)
QUESTION 2
The Sungai Rasah Food Company was inspected by the Environmental and Protection
Agency (EPA) and found to be in violation of a number of safety regulations. The EPA
inspectors ordered the company to alter some existing machinery to make it safer, purchase
some new machinery to replace older, dangerous machinery; and install water pollution
control equipment. The agency gives the factory only 24 weeks to make the changes; if the
changes were not made by then, the company would be fined RM350,000. The company
determined the activities that would have to be completed and then estimated the activity
times, as summarized in the following table.
Time (weeks)
Immediate
Activity Optimistic Most Probable Pessimistic
Predecessors
(a) (m) (b)
A - 1 2 3
B - 2 5 8
C - 1 3 5
D A 4 5.5 10
E A 3 4.75 8
F B 5 5.5 9
G C 5 9 13
H D, E 4 5 6
1 D, E, F 1 4 7
J H,l 2 5 8
K G 6 6 6
b) Find the critical path, the expected project duration, and the project standard
deviation.
(4 marks)
QUESTION 3
Assume that no shortages are allowed and there are 20 working days in each month,
a) Determine the economic order quantity.
(3 marks)
b) Calculate the annual total inventory cost associated with the above order size.
(2 marks)
Option 3: Manufacture the component in-house at the cost of RM18 per unit. With
this option, there will be a setup cost of RM60 per production run. The
component will be produced at the rate of 150 units per day. Assume the
annual unit holding cost remains at 15% of the value of the component.
Should the firm order from the vendor using the optimal ordering policy, take
advantage of the quantity discount (Option 2), or manufacture the component in-
house (Option 3)?
(10 marks)
QUESTION 4
a) C-Bizz Mart is a retail catalog store specializing in cosmetics. Phone orders are
taken each day by a large pool of computer operators, some of whom are permanent
and some temporary. A permanent operator can process an average of 75 orders per
day, whereas temporary operator can process an average of 52 orders per day. The
company receives an average of at least 600 orders per day. The store has 10
computer workstations. A permanent operator will process about 1.3 orders with
errors each day, whereas a temporary operator will average 4.2 orders with errors
daily. The store wants to limit errors to 24 per day. A permanent operator is paid
RM60 per day including benefits and temporary operator is paid RM40 per day. The
company wants to know the number of permanent and temporary operators to hire to
minimize costs.
i) Write the dual for the above linear programming problem in variable Y.
(3 marks)
The following is an incomplete final simplex tableau for the dual.
Cj 20 30 0 0 0
Solution Y2 Si s2 S3 Quantity
Mix
30 Y2 1.25 1 0.25 0 0 500
0 s2 0.75 0 -0.25 1 0 200
0 S3 -0.5 0 -0.5 0 1 600
Zj
C;-Zi
QUESTION 5
a) TechRep Manufacturing Company is monitoring the breakdowns and repairs for one of
its machines. The elapsed time between breakdowns of this particular machine has the
following distribution.
When the machine breaks down, it must be repaired; and it takes either one, two, or
three days for the repair to be completed. The probability distribution for machine repair
time is as shown below.
Every time the machine breaks down, the cost to the company is estimated at RM2000
per day in lost production until the machine is repaired.
Simulate the existing maintenance system for the machine to determine the cost due to
repair time for one year (365 days). Use as many of the following random numbers
needed to conduct the simulation.
You may use the template shown below to conduct the simulation.
b) TechRep would like to know if it should implement a maintenance program at the cost
of RM15,000 per year that would reduce the frequency of breakdowns and thus the
time for repair. The maintenance program would result in the following distribution
for time between breakdowns.
The repair time resulting from the maintenance program has the following
distribution.
Simulate the breakdown and repair system with the maintenance program using the
random numbers in part (a). Determine the annual repair cost and make a
recommendation to TechRep on whether the maintenance program should be
implemented.
(7 marks)
LIST OF FORMULAE
J2C D
1. The Economic Order Quantity, EOQ =
Ch
, 2C D
2. The Economic Batch Quantity, EBQ =
c*0--)
P
P(B | A).P(A)
8. Bayes' Theorem, P(A \ B) =
P(B\A).P(A) + P(B\A).P(A)
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