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: 12.06.2016 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. Each sub-question carry 1 mark)
Q.1 State TRUE or FALSE: [15 Marks]
Probability is the study of random or nondeterministic experiments.
A feasible solution is a solution for which all constraints are satisfied.
Optimal solution does not have the most favorable values of the objective function.
The objective of Transportation Problem is to maximize cost.
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.
The Breakeven Point is the point where the sales volume generates huge amount of
profit.
Fixed costs remain unchanged within a relevant range of activity.
Simulation is imitation of reality.
Any realistic business situation involves probabilistic or random features.
Variable costs change in direct proportion to an activity level.
An activity is an effort that requires resources and time for completion.
Probability of a customer waiting in a queue can have a minimum value of zero.
North West Corner method is used to solve Assignment Problem.
Q.2 Match the columns A 5 marks]
Least Cost Method Two variable LPP
Inventory Management Service Rate
Graphical Method Safety Stock
Hungarian Method Transportation Problem
Exponential Distribution Assignment Problem
Q.3 Write full form of the following: 5 Marks]
PERT; CPM; EOQ; LIFO; FIFO
June 2016
PART B x15 75 marks)
[Answer any five . Each question carry 15 Marks]
Q.4 List out the types of replacement policies. Define the term "PRESENT WORTH FACTOR'.
Q.5 The cost of transportation per unit from three sources and four destinations are given in table
as per below. Obtain the initial basic feasible solution using vogel's
Approximation Method:
Q.6 Five jobs are to be assigned to five men. The cost(in INR) of performing the job by each man
is given in table as per below. The assignment has restrictions the job 4 cannot be
performed by man 1and job 3 cannot be performed by man4. Find the optimal assignment of
job and its cost involved.
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.
Maximize
3x+2y
Subject to


Where x,y≥0.
Source
Destination
A B C D Supply
1 2 3 11 7 6
2 1 0 6 1 1
3 5 8 15 9 10
Demand 7 5 3 2 17
Q.8 What is Breakeven analysis? Discuss in detail.
Q.9 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.
Q.10 What is payback period? How is it useful in decision making? What are the limitations of
payback period?
Solve the following problem by using Graphical Method:
Maximize Z 3x+4y
Subject to-
X+y≤450
2x+y≤600
Where x,y≥0.