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Code: 07MB203

MBA - ΙΙ Semester Supplementary Examinations, August/September 2012

(For students admitted in 2008 only)
Time: 3 hours Max Marks: 60
Answer any FIVE questions
All questions carry equal marks

1 Explain the nature, scope and significance of quantitative analysis.

2 (a) What is operations research? What areas of operations research have made a
significant impact on decision-making?
(b) What is the role of operations research in decision-making? Explain the scope
and methodology of operations research based on the scientific method
analysis. Discuss.

3 (a) Define linear programming. What are its applications and limitations?
(b) Solve the following LPP’s graphically
subjected to constraints

4 Determine an initial basic feasible(IBS) solution to the following T.P using

(a) North-west corner rule, and
(b) Vogel’s method.
A 1 B 1 C 1 D 1 E 1 Supply
A 2 11 10 3 7 4
Origin B 1 4 7 2 1 8
C 3 9 4 8 12 9
Demand 3 3 4 5 6 21

Contd. in Page 2

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Code: 07MB203

5 (a) Describe the maximini principle of game theory. What do you understand by pure
strategies and saddle point.
(b) Explain the “best strategy” on the basis of minimax criterion of optimalities.

6 (a) What is queueing problem? Explain queueing system, transient and steady state.
(b) Describe the fundamental components of a queueing process and give suitable

7 Explain the types of simulation. Discuss clearly the various costs that are involved
in inventory problems with suitable examples. How they are inter-related?

8 (a) Write the differences between CPM and PERT.

(b) Let the value of money be assumed to be 10% per year and suppose that
machine A is replaced after every 3 years where as machine B is replaced after
six years. The yearly costs of both the machines are given as under.
Year 1 2 3 4 5 6
Machine ‘A’ 1,000 200 400 1,000 200 400
Machine ‘B’ 1,700 100 200 300 400 500
Determine which machine should be purchased.


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