INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
Paper No. 2
QUANTITATIVE TECHNIQUES AND OPERATIONS RESEARCH
Date: 10.12.2017 Max .Marks: 100.
Time: 2.00 to 5.00 p.m. Duration: 3 hours
Instructions:
1. The Question Paper is in two parts- Part A (compulsory) and Part B.
2. From Part A answer all the questions. Each question carries 1 mark, total 25 marks. (Total Marks 25)
3. From Part B answer any five questions out of 7 questions .Each question carries 15 marks, total 75 marks.
4. Use of non-scientific calculator and/or mathematical tables is permitted.
5. Graph paper can be used wherever necessary.
PART A 25 x1 25 marks)
Compulsory)
Q.1 State TRUE or FALSE: 1 Mark Each]
.
A feasible solution is a solution for which all constraints are satisfied.
The selection of the appropriate order in which waiting customers are served is called sequencing.
The time lag required to obtain the delivery of fresh supplies is Safety Stock.
Payback Period is period required to recover original cash outflow invested in a project.
Fixed costs remain unchanged within a relevant range of activity.
Simulation is imitation of reality.
North West Corner method is used to solve Assignment Problem.
A network is a logical and chronological set of activities and events.
Trend is the general tendency of the data to increase or decrease or stagnate over a long period of time.
Wherever there is a problem of optimization there is scope of application of Operations Research.
Q.2 Fill in the blanks: 1 Mark Each]
CPM stands for
PERT stands for
Probability of a customer waiting in a queue can have a minimum value of
NPV stands for
ROI stands for
EOQ stands for
LPP is
FIFO stands for
North West Corner method is used to solve problem.
The objective of transportation problem is to the transportation cost.
Dec 2017
Q.3 Match the columns A 1 Mark Each]
Least Cost Method
Two variable LPP
Inventory Management
Service Rate
Graphical Method
Safety Stock
Hungarian Method
Transportation Problem
Exponential Distribution
Assignment Problem
PART B
(Answer any five) 5 x15 75 marks
Q.4 An automobile company uses bolts at an approximate consumption rate of 2500 kg
per annum. The bolts cost Rs 30 per kg and the company estimates that it costs Rs
130 to place an order and the inventory carrying cost is 10% per annum. How
frequently should orders for bolts be placed and what quantity should be ordered?
15 marks
Q 5 WRITE SHORT NOTES ON ANY Three 3 x5 15 marks)
a. Markov chain process
b. Monte Carlo simulation
c. Decision tree
d. Difference between PERT and CPM.
Q.6 Five jobs are to be assigned to five men. The cost(in INR) of performing the job by ach man is given in table as per below. The assignment has restrictions the job 4 cannot be performed by man 1andjob 3 cannot be performed by man4. Find the optimal assignment of job and its cost involved. 15 marks
Jobs
1
2
3
4
5
Men
1
16
12
11
x
15
2
13
15
11
16
18
3
20
21
18
19
17
4
16
13
x
16
12
5
20
19
18
17
19
Q.7 Solve the following by using Simplex Method. 15 marks
Maximize
6x+4y
Subject to
2x+3y≤120
2x+y≤60
Where x,y≥0.
Q.8 What are the characteristics and limitations of a linear programming problem? 10 marks
The Oswal Hardware sells fasteners of Rs annually. Ordering cost is Rs
per order. Carrying cost is 12.5% of average inventory value. Find out optimal
order size, number of orders per year and cycle period. 5 marks
Q.9 What is Operations Research? Discuss the advantages and limitations of Operations
Research. 10 marks
A machine costs INR 500 to operate, while maintenance costs are zero for the first year
increasing by INR 100 every year. If the interest rate is every year, determine the best
age at which the machine should be replaced. 5 marks
Q.10 What is payback period? How is it useful in decision making? What are the limitations of
payback period? 10 marks
Solve the following problem by using Graphical Method: 5 marks
Maximize Z 3x+2y
Subject to-
2X+y 100
x+y 80
40
Where x,y≥0.