SMS 3350 Operations Research

MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY
P.O. Box 972-60200 – Meru-Kenya.

Tel: +254 (0)799529958, +254 (0)799529959, +254 (0)712524293
Website: www.must.ac.ke Email: info@must.ac.ke
UNIVERSITY EXAMINATIONS 2020/2021
SECOND YEAR, SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR

OF SCIENCE IN ACTUARIAL SCIENCE
SMS 3350 – OPERATIONS RESEARCH
DATE: JULY 2021 TIME: 2 HOURS
INSTRUCTIONS: Answer question one and any other two questions.
QUESTION ONE (30 MARKS)
a) Define operation research (2 Marks)

b) Give and explain three assumptions of Linear Programming. (3 Marks)
c) Define the following terms;
(i) Basic solution
(ii) Optimal solution
(iii) Sensitivity Analysis
d) Three machine shops A, B, C produces three types of products X,Y,Z respectively. Each
product involves operation of each of the machine shops. The time required for each operation
on various products is given as follows;
A B C Profit per unit
X 10 7 2 12
Y 2 3 4 3
Z 2 4 6 13
Availability 80 40 96
(i) Formulate the linear programming problem that will maximize profit (4 Marks)
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(ii) Write the dual of the LPP above (4 Marks)
e) Find the initial solution using least cost method given the cost coefficient in the table below.
(6 Marks)
1 2 3 Supply
A 1 5 2 100
B 4 6 3 60
C 6 7 3 140
Demand 120 80 80
f) Workers come to the tool storeroom to receive the special tools required by them for
accomplishing a particular project assigned to them. The average time between two arrivals is
one minute and arrivals are assumed to follow the poison distribution. The average service time
of the tool room attendant is 1.5 per minute. Determine :
(i) Average queue length (2 Marks)
(ii) Average number of workers in the system (2 Marks)
g) Define Economic Order Quantity (EOQ) (2 Marks)
QUESTION TWO (20 MARKS)
a) A company contains four persons available for work on the four jobs. Only one person can
work on any one job. The following table shows the cost of assigning each person to each job.
The objective is to assign person to jobs such that the total assignment cost is a minimum.
1 2 3 4
A 20 25 22 28
B 15 18 23 17
C 19 17 21 24
D 25 23 24 24
b) Cambridge Chowda Co. consumes D=60,000 cases of crakers per year. The crackers cost =
$4 per case, and each order incurs a delivery cost of K=$200.If the holding cost is 24% of the
cost of the crackers, determine;
(i) The Economic Order Quantity (EOQ) ( 3 Marks)
(ii) The number of orders per year (2 Marks)
(iii)Total ordering cost (4 Marks)
c) Give five differences between CPM and PERT in network analysis. (5 Marks)
QUESTION THREE (20 MARKS)
a) Given the transportation problem below;
Supply
11 13 17 14 250
16 18 14 10 300
21 24 13 10 400
Demand 200 225 275 250
(i) Find the initial solution using Voggel’s approximation method(VAM) (5 Marks)
(ii) Find the optimal solution using MODI method. (10 Marks)
b) The following are precedence relationships of the activities and their duration in weeks. Draw
the network for the activities and find the critical path. (5 Marks)
A - 4
B - 5
C A 10
D A 2
E B 4
F C, E 6
G D,F 2
QUESTION FOUR (20 MARKS)
a) A tax consulting firm has three counters in its office to receive people who have problems
concerning their income, wealth and sales taxes. On average 48 persons arrive in an eight-hour
day. Each tax adviser spends 15 on average on arrival. If the arrival are Poisson distributed and
the service times are according to exponential distribution, find the following;
(i) The probability of an empty system (5 Marks)
(ii) The average number of customers in the system (3 Marks)
(iii) The number of hours each week a tax adviser spends performing his job (2 Marks)
b) The table below gives network relationships and their estimates.

Activity
1→2 2 2 8
2→4 0.5 2.5 7.5
2→3 1 1.5 11
3→4 0 0 0
4→ 5 6 7 8
3→5 1 2.5 7
4→ 6 3 4 11
5→6 4 6 8
3→6 1 2 3
(i) Identify the critical path (6 Marks)

(ii) What is the probability that the project will be completed in 20 days? (4 Marks)
QUESTION FIVE (20 MARKS)
a) A manufacturer produces three types of plastic fixtures. The time required for molding,
trimming and packaging is given below. How many dozen of each type of fixture should be
produced to obtain a maximum profit? (16 Marks)
Type A Type B Type C Available time
Molding 1 2 3 12000
2
Trimming ⅔ ⅔ 1 4600
Packaging ½ ⅓ ½ 2400
Profit $11 $16 $15
b) From the final tableau in 5(a) identify the shadow prices and resource that are scarce and the
ones that are abundant. (4 Marks)


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MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY

P.O. Box 972-60200 – Meru-Kenya.

UNIVERSITY EXAMINATIONS 2020/2021

SECOND YEAR, SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR

SMS 3350 – OPERATIONS RESEARCH

DATE: JULY 2021 TIME: 2 HOURS

INSTRUCTIONS: Answer question one and any other two questions.

QUESTION ONE (30 MARKS)

a) Define operation research (2 Marks)

QUESTION TWO (20 MARKS)

QUESTION THREE (20 MARKS)

a) Given the transportation problem below;

QUESTION FOUR (20 MARKS)

Meru University of Science & Technology is ISO 9001:2015 Certified

(i) Identify the critical path (6 Marks)

QUESTION FIVE (20 MARKS)

Meru University of Science & Technology is ISO 9001:2015 Certified

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