Visvesvaraya National Institute of Technology, Nagpur, M.S

Visvesvaraya National Institute of Technology, Nagpur, M.S.
Department of Mechanical Engineering

Online End-Term Examination. Date: 02/12/2021
MEL403: Operations Research
Time: 90 Minutes (11:00 to 12:30 Hrs) Maximum Marks: 35 Marks
Instructions to Candidate:
(1) Answer ALL SEVEN questions (2) All questions carry marks as indicated.
(3) Support your answer with sketches/graph paper (4) Match of answers as per cases will lead to unfair
wherever necessary. Use of calculator permitted. Use of means.
normal distribution table is permitted.
(5) Answer to each question should be Qualitative as (6) This is by default an Open book examination and
each addition of A4 size paper will create bulky PDF file hence copy of answers from available resources is
for online submission. discouraged. YOUR OWN understanding and YOUR
OWN answers are expected.
(7) Examinee Signature need to be appended in the (8) Clearly write page no., enrolment no., and name in
bottom right corner of all answer sheet. the top-right corner of all pages (see format at the
end).
Q.1) ABC Printing Company is facing a tight financial squeeze and is attempting to cut costs
wherever possible. At present it has only one printing contract, and luckily, the book is
selling well in both the hardcover and the paperback editions. It has just received a request
to print more copies of this book in either the hardcover or the paperback form. The
printing cost for the hardcover books is Rs 600 per 100 books while that for paperback is
only Rs 500 per 100 books. Although the company is attempting to economize, it does not
wish to lay off any employee. Therefore, it feels obliged to run its two printing presses- I
and II, at least 80 and 60 hours per week, respectively. Press-I can produce 100 hardcover
books in 2 hours or 100 paperback books in 1 hour. Press-II can produce 100 hardcover
books in 1 hour or 100 paperback books in 2 hours.
a. Formulate the problem (03 Marks)
b. Solve the problem by Simplex method (07 Marks)
Q.2) (a) Write Dual for the following Primal LP problem-
Minimize Zx = 40x1 + 200 x2
Subjected to 4 x1 + 40 x2 ≥ 160
3 x1 + 10 x2 ≥ 60
8 x1 +10 x2 ≥ 80
1|3
And x1, x2 ≥ 0. (3 Marks)
(b) The following table provides all the necessary information on the availability of
supply to each warehouse, the requirement of each market, and the unit transportation
cost (in Rs) from each warehouse to each market.
Market
P Q R S Supply
Ware- A 6 3 5 4 22
house
B 5 9 2 7 15
C 5 7 8 6 8
Demand 7 12 17 9 45
The shipping clerk of the shipping agency has worked out the following schedule,
based on his own experience: 12 units from A To Q, 1 unit from A to R, 9 units from A to S,
15 units from B to R, 7 units from C to P and 1 unit from C to R.
Check and see if the clerk has the optimum schedule. Find the optimal schedule and
minimum total transportation cost. (7 Marks)
Q.3) The following network diagram represents activities associated with a project:
Activities A B C D E F G H I
Optimistic time, to 5 18 26 16 15 6 7 7 3
Pessimistic, tp 10 22 40 20 25 12 12 9 5
Most likely time, tm 8 20 33 18 20 9 10 8 4
2|3
Determine the following-
a. Expected completion time and variance of each activity

b. The earliest and latest expected completion times of each event
c. The critical path
d. The probability of expected completion time of the project if the original scheduled
time of completing the project is 41.5 weeks.
e. The duration of the project that will have 95 per cent chance of being completed.
(5 Marks)
Q.4) (a) At present a company purchases an item X from outside suppliers. The consumption
of this item is 10,000 units/year. The cost of the item is Rs 5 per unit and the ordering cost is
estimated to be Rs 100 per order. The cost of carrying inventory is 25 per cent. If the
consumption rate is uniform, determine the economic purchasing quantity. (2 Marks)
(b) In the above problem assume that company is going to manufacture the item with the
equipment that is estimated to produce 100 units per day. The cost of the unit thus produced is
Rs 3.50 per unit. The set-up cost is Rs 150 per set-up and the inventory carrying charge is 25
per cent. Assuming 250 working days in the year, determine the economic purchasing quantity.
(3 Marks)
Q.5) A person is considering purchasing a machine for his own factory. Relevant data about
alternative machines are as follows:
Machine A Machine B Machine C
Present investment (Rs) 10,000 12,000 15,000
Total annual cost (Rs) 2,000 1,500 1,200
Life (years) 10 10 10
Salvage value (Rs) 500 1,000 1,200
As an advisor to the buyer, you have been asked to select the best machine, considering 12
per cent normal rate of return.
You are given that-
(a) Single payment present worth factor (Pwf) at 12 per cent interest for 10 years = 0.322
(b) Annual series present worth factor (Pwf) at 12 per cent interest for 10 years = 5.650
(5 Marks)
__**End of question paper**__
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Visvesvaraya National Institute of Technology, Nagpur, M.S.

Department of Mechanical Engineering

MEL403: Operations Research

Time: 90 Minutes (11:00 to 12:30 Hrs) Maximum Marks: 35 Marks

Q.2) (a) Write Dual for the following Primal LP problem-

Minimize Zx = 40x1 + 200 x2

Most likely time, tm 8 20 33 18 20 9 10 8 4

a. Expected completion time and variance of each activity

Machine A Machine B Machine C

Present investment (Rs) 10,000 12,000 15,000

Total annual cost (Rs) 2,000 1,500 1,200

Salvage value (Rs) 500 1,000 1,200

You are given that-

End of question paper

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