N18PMSM33A

Sp3
(7 pages)
NOVEMBER/ 1810217/PMSM33A
DECEMBER 2018
Time : Three hours Maximum : 75 marks
PART A — (10  1 = 10 marks)
Answer any TEN questions.

1. Write a suggestion of Hurwicz approach.
2. Define payoff matrix.
3. Define expected opportunity loss.
4. Define dummy activity.
5. What is critical path?
6. Write the formula for optimal total variable
inventory cost.
7. Write the formula for total cycle time.
8. Write the three setup cost models of static demand
model.
9. What is critical ratio in inventory control?
10. Define arrival process.
11. Write a formula for average waiting time for a
customer in the queue.
12. Define pure birth process.
Sp3
PART B — (5  5 = 25 marks)
Answer any FIVE questions.
13. An investor is given the following alternatives and

percentage rates of return.
State of Nature (Market Conditions)
Low Medium High
Regular shares 7% 10% 15%
Risky shares –10% 12% 25%
Property –12% 18% 30%
Over the past 30 days, 150 days have been

medium market conditions and 60 days have had
high market increases. On the basis of these data,
state the optimum investment strategy for the
investment.
14. Listed in the table are activities and sequencing

necessary for a maintanance job on the heat
exchanges in a refinery.
Activity Description Predecessor
Activity
A Dismantle pipe connections –
B Dismantle heater, closure and floating front A
C Remove tube bundle B
D Clean bolts B
E Clean heater and floating head front B
2 1810217/PMSM33A
Sp3
Activity Description Predecessor

Activity
F Clean tube bundle C
G Clean shell C
H Replace tube bundle F, G
I Prepare shell pressure test D, E, H
J Prepare tube pressure test and reassemble I
Draw a network diagram of activities for the

project.
15. Write the rules for AOA network construction.
16. Explain the classification of EOQ models.
17. Explain different performance measures of a

queuing system.
18. A super market has two sales girls at the sales

counters. If the service time for each customer is
exponential with a mean of 4 min and if the people
arrive in a Poisson fashion at the rate of 10 an
hour, then calculate the
(a) Probability that a customer has to wait for
being served?
(b) Expected percentage of idle time for each
sales girl.
(c) If a customer has no wait, what is the
expected length of his waiting time?
3 1810217/PMSM33A
Sp3
19. The data collected in running a machine, the cost

of which is Rs. 60,000 are given below :
Year : 1 2 3 4 5
Resale value (Rs.) : 42,000 30,000 20,400 14,400 9,650
Cost of spares (Rs.) : 4,000 4,270 4,880 5,700 6,800
Cost of labour (Rs.) : 14,000 16,000 18,000 21,000 25,000
Determine the optimum period for replacement of
the machine.
PART C — (4  10 = 40 marks)
Answer any FOUR questions.
20. A company needs to increase its production beyond

its existing capacity. It has narrowed down on two
alternatives in order to increase the production
capacity : (a) Expansion at a cost of Rs. 8 million,
or (b) Modernization at a cost of
Rs. 5 million. Both approaches would require the
same amount of time for implementation.
Management belives that over the required
payback period, demand will be high or moderate.
Since high demand is considered to be somewhat
less likely than moderate demand, the probability
of high demand has been set at 0.35. If the
demand is high, expansion would gross an
estimated additional Rs. 12 million but
modernization would only gross an additional
Rs. 6 million, due to lower maximum production
capacity. On the other hand, if the demand is
moderate, the comparable figures would be
Rs. 7 million for expansion and Rs. 5 million for
modernization.
4 1810217/PMSM33A
[P.T.O.]
Sp3
(i) Calculate the condition profit in relation to

various action – and – outcome combinations
and states of nature.
(ii) If the company wishes to maximize its

Expected Monetary Value (EMV) should it
moderate or expand?
(iii) Calculate the EVPI.
(iv) Construct the conditional opportunity loss

table and also calculate EOL.
21. The following network diagram represents activity

associated with a project :
Activities : A B C D E F G H I
Optimistic time, t0 : 5 18 26 16 15 6 7 7 3
Pessimistic time, tp : 10 22 40 20 25 12 12 9 5
Most likely time, tm : 8 20 33 18 20 9 10 8 4
5 1810217/PMSM33A
Sp3
Determine
(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% chance of being completed.
22. Explain news by problem model.
23. The probability distribution of monthly sales of a

certain item is as follows :
Monthly sales D : 0 1 2 3 4 5 6
Probability : 0.02 0.05 0.30 0.27 0.20 0.10 0.06
The cost of carrying inventory is Rs. 10 per unit

per month. The current policy is to maintain a
stock of four items at the beginning of each month.
Assuming that the cost of storage is proportional
to both time and quantity short, obtain the
imputed cost of storage of one item for one time
unit.
6 1810217/PMSM33A
Sp3
24. Explain {(M/M/1) : ( / FCFS )} single server

queuing model.
25. A certain piece of equipment is extremely difficult

to adjust. During a period when no adjustment is
made, the running cost increases linearly with
time, at a rate of ‘b’ rupees per hour. The running
cost immediately after an adjustment is not
precisely known until the adjustment has been
made. Before the adjustment, the resulting
running cost x is a random variable, x with
density function f (x ) . If each adjustment costs
' K ' rupees, when should the replacement be
made?
———————
7 1810217/PMSM33A

N18PMSM33A

Uploaded by

Copyright:

Available Formats

N18PMSM33A

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

N18PMSM33A

Uploaded by

Copyright:

Available Formats

Sp3

Time : Three hours Maximum : 75 marks

PART A — (10  1 = 10 marks)

Answer any TEN questions.

Answer any FIVE questions.

13. An investor is given the following alternatives and

Over the past 30 days, 150 days have been

14. Listed in the table are activities and sequencing

Activity Description Predecessor

Draw a network diagram of activities for the

15. Write the rules for AOA network construction.

16. Explain the classification of EOQ models.

17. Explain different performance measures of a

18. A super market has two sales girls at the sales

19. The data collected in running a machine, the cost

Answer any FOUR questions.

20. A company needs to increase its production beyond

(i) Calculate the condition profit in relation to

(ii) If the company wishes to maximize its

(iii) Calculate the EVPI.

(iv) Construct the conditional opportunity loss

21. The following network diagram represents activity

(a) Expected completion time and variance of

(b) The earliest and latest expected completion

(c) The critical path.

(d) The probability of expected completion time

(e) The duration of the project that will have

22. Explain news by problem model.

23. The probability distribution of monthly sales of a

The cost of carrying inventory is Rs. 10 per unit

24. Explain {(M/M/1) : ( / FCFS )} single server

25. A certain piece of equipment is extremely difficult

You might also like