SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT SCIENCE

BF360-OPERATIONS RESEARCH

END OF SEMESTER FINAL EXAMINATION

MONDAY 18TH DECEMBER 2017

09:00- 12:00 HOURS

Time allowed: 3 HOURS plus 5 minutes reading time.

Instructions to Candidates:
1. Read the instructions very carefully.

2. Check that you have the correct examination paper in front of you.

3. There are TWO (2) Sections in this question paper. Section A is

COMPULSORY. Answer any FOUR (4) questions in Section B.

4. All questions must be answered in the answer booklet only.

5. Write down the number of questions that you have answered on the cover of
the examination answer booklet.

6. Begin each question on a new page.

7. No books, files or other mechanical / electronic aids are permitted.

8. There shall be NO communication among students during the examination.

Any students caught doing this will be disqualified.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

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SECTION A: MULTIPLE CHOICE QUESTIONS

Write down the letter of the answer you have chosen for each question in the
answer booklet provided.

QUESTION ONE

1. The objective of Operations Research is:

a) To find new methods of solving Problems,

b) To derive formulas.
c) Optimal utilization of existing resources.
d) To utilize the services of scientists.
2. Which technique is used in finding a solution for optimizing a given objective, such
as profit maximization or cost minimization under certain constraints?

a) Quailing Theory.

b) Waiting Line.

c) Both A and B.

d) Linear Programming.

3. ______________ are the representation of reality.

a) Models.

b) Phases.

c) Both A and B.

d) None of the above.

4. The objective functions and constraints are linear relationships between

______________.

a) Variables.

b) Constraints.

c) Functions.

d) All of the above.

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5. A minimization problem can be converted into a maximization problem by changing
the sign of coefficients in the ______________.

a) Constraints.

b) Objective Functions.

c) Both A and B.

d) None of the above.

6. If in a LPP , the solution of a variable can be made infinity large without violating the
constraints, the solution is ______________.

a) Infeasible.

b) Unbounded.

c) Alternative.

d) None of the above.

7. Every LPP is associated with another LPP is called ______________.

a) Primal.

b) Dual.

c) Non‐linear programming.

d) None of the above.

8. ______________ assumption means the prior knowledge of all the coefficients in

the objective function, the coefficients of the constraints and the resource values.

a) Proportionality.

b) Certainty.

c) Finite choices.

d) Continuity.

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9. In Graphical solution of maximisation problem, the line, which we move from origin
to the extreme point of the polygon is :
a) Any one side of the polygon. b) Iso cost line.
c) Iso profit line. d) An imaginary line.

10. The key row indicates;

a) Incoming variable. b) outgoing variable.
c) Slack variable. d) Surplus variable.

11. The key column indicates;

a) Outgoing variable. b) Incoming variable.
c) Independent variable. d) Dependent variable.

12. Which variables are fictitious and cannot have any physical meaning?

a) Optimal variable.

b) Decision variable.

c) Artificial variable.

d) None of the above.

13. In which of the following examples can the linear programming technique be used?
1. In problems where objective functions are linear 2. In assignment problems 3. In
getting integer valued solutions 4. In problems where objective functions are non-
linear
a) Options 1 & 2.

b) Options 1 & 3.

c) Options 2 & 3.

d) Options 2 & 4.

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14. State whether the following statements are true or false. 1. An LP is in standard form
if all constraints are equality constraints and all variables are nonnegative. 2. Any
basic solution in which all variables are nonnegative is a basic feasible solution (bfs)
to the LP.

a) 1-True, 2-True.

b) 1-False, 2-True.

c) 1-False, 2-False.

d) 1-True, 2-False.

15. In a transportation problem where the demand or requirement is equals to the

available resource is known as

a) Balanced transportation problem.

b) Regular transportation problem.

c) Resource allocation transportation problem.

d) Simple transportation model.

16. A diet is being developed which must contain at least 100 mg of vitamin C. Two
fruits are used in this diet. Bananas contain 30 mg of vitamin C and Apples contain
20 mg of vitamin C. The diet must contain at least 100 mg of vitamin C. Which of the
following constraints reflects the relationship between Bananas, Apples and vitamin
C?
a) 20A + 30B ≥ 100 c) 20A + 30B = 100
b) 20A + 30B ≤100 d) 20A = 100
17. The body of knowledge that deals with the analysis of making of decisions is known
as
a) Decisions. b) Knowledge base.
c) Decision theory. d) Decision analysis.

18. Arrival → Service → Service → Service → Out

The figure given represents:
a) Single channel single phase system.
b) Multichannel single-phase system.
c) Single channel multiphase system.
d) Multichannel multiphase system.

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19. The order in which waiting customers are served is called the
a) Calling population.
b) Arrival rate.
c) Queue discipline.
d) Operating characteristic.

20. The ____________ criterion results in the maximum of the minimum payoff
a) Maximax.
b) Maximin.
c) Minimax regret.
d) Equally Likely.
[Total: 20 Marks]

SECTION B: Answer any FOUR (4) questions

QUESTION TWO

A). The following tableau represents a specific simplex iteration. All variables are
nonnegative. The tableau is not optimal for either a maximization or a minimization
problem. Thus, when a non-basic variable enters the solution it can either increase or
decrease z or leave it unchanged, depending on the parameters of the entering non-
basic variable.

x1 x2 x3 x4 s1 s2 s3 s4 BV RHS
0 -5 0 4 -1 -10 0 0 Z 620
0 3 0 -2 -3 -1 1 1 s4 12
0 1 1 3 1 0 0 0 x3 6
1 -1 0 0 6 -4 0 0 x1 0

i. Categorize the variables as basic and non-basic and provide the current values
of all the variables. [3 Marks]
ii. Assuming that the problem is of the maximization type, identify the non-basic
variables that have the potential to improve the value of z. If each such variable
enters the basic solution, determine the associated leaving variable. [3 Marks]

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 iii. Repeat part (ii) assuming that the problem is of the minimization type. [4
Marks]

B). A construction company has four large bulldozers located at four different garages.
The bulldozers are to be moved to four different construction sites. The distances, in
kilometres, between the bulldozers and the construction sites are given in the table
below:
Bulldozer/Site A B C D

1 90 75 75 80
2 35 85 55 65
3 125 95 90 105
4 45 110 95 115

i) How should the bulldozers be moved to the construction sites in order to minimize the
total distance travelled? [6 Marks]
ii) What is the minimum distance that can be moved by the bulldozers? [4 Marks]

[Total: 20 Marks]

QUESTION THREE

A) The Sable Transport Company expanded its shipping capacity by purchasing 90

trailer trucks from a competitor that went bankrupt. The company subsequently located
30 of the purchased trucks at each of its shipping warehouses in Sinda, Nyimba, and
Petauke. The company makes shipments from each of these warehouses to terminals
in Lundazi, Katete, and Chipata. Each truck is capable of making one shipment per
week. The terminal managers have indicated their capacity of extra shipments. The
manager at Lundazi can accommodate 40 additional trucks per week, the manager at
Katete can accommodate 60 additional trucks, and the manager at Chipata can
accommodate 50 additional trucks. The company makes the following profit per
truckload shipment from each warehouse to each terminal. The profits differ as a result
of differences in products shipped, shipping costs, and transport rates:

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 Terminal (profit)
Warehouse Lundazi Katete Chipata
Sinda K1,800 2,100 1,600
Nyimba 1,000 700 900
Petauke 1,400 800 2,200

Formulate an LP model to determine how many trucks to assign to each route (i.e.,
warehouse to terminal) in order to maximize profit. [10 Marks]
B) A machine shop owner is attempting to decide whether to purchase a new drill press,
a lathe, or a grinder. The return from each will be determined by whether the company
succeeds in getting a government military contract. The profit or loss from each
purchase and the probabilities associated with each contract outcome are shown in the
following payoff table:
Purchase Contract No Contract
.40 .60
Drill press K40,000 K -8,000
Lathe 20,000 4,000
Grinder 12,000 10,000

i. Compute the expected value for each purchase and select the best one.
[5 marks]
ii. Develop the opportunity loss table and compute the expected opportunity loss
for each decision. [5 marks]

[Total: 20 Marks]

QUESTION FOUR

A). The director of career advising at Orange Community College wants to use decision
analysis to provide information to help students decide which 2-year degree program
they should pursue. The director has set up the following payoff table for six of the most
popular and successful degree programs at OCC that shows the estimated 5-year gross
income (K) from each degree for four future economic conditions:

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 Determine the best degree program in terms of projected income, using the
following decision criteria:

i. Maximax. [3 Marks]
ii. Maximin. [3 Marks]
iii. Equal likelihood. [3 Marks]
iv. Minimax Regret. [3 Marks]

B).Solve the following System of equations Using Gauss Jordan Elimination Method.

x  2 y  3z  7
2x  y  z  4
 3 x  2 y  2 z   10

[8 Marks]

[Total: 20 Marks]
QUESTION FIVE

A). A company produces two products that are processed on two assembly lines.
Assembly line 1 has 100 available hours, and assembly line 2 has 42 available hours.
Each product requires 10 hours of processing time on line 1, while on line 2 product 1
requires 7 hours and product 2 requires 3 hours. The profit for product 1 is K6 per unit,
and the profit for product 2 is K4 per unit.
i. Formulate a linear programming model for this problem. [5 Marks]
ii. Solve this model by using graphical analysis. [5 Marks]

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B) Jay Seago is suing the manufacturer of his car for K3.5 million because of a defect
that he believes caused him to have an accident. The accident kept him out of work for
a year. The company has offered him a settlement of K700,000, of which Jay would
receive K600,000 after attorneys' fees. His attorney has advised him that he has a 50%
chance of winning his case. If he loses, he will incur attorneys' fees and court costs of
K75,000. If he wins, he is not guaranteed of his full requested settlement. His attorney
believes that there is a 50% chance he could receive the full settlement, in which case
Jay would realize K2 million after his attorney takes her cut, and a 50% chance that the
jury will award him a lesser amount of K1 million, of which Jay would get K500,000.
Using decision tree analysis, decide whether Jay should proceed with his lawsuit
against the manufacturer. [5 Marks]
a) For each of the following queuing systems, indicate whether it is a single- or
multiple-server model, the queue discipline, and whether its calling population is
infinite or finite.
i. Hair salon.
ii. Bank.
iii. Doctor’s office.
iv. Airport runway.
v. Web site.
[5 Marks]

[Total: 20 Marks]
QUESTION SIX
Consider the following linear program:
Max 𝑧 = 3𝑥 + 2𝑦
s.t 𝑥 + 𝑦 ≤ 10
3𝑥 + 𝑦 ≤ 24
𝑥 + 2𝑦 ≤ 16
𝑥, 𝑦 ≥ 0
a. Write the Dual to this Problem. [3 marks]
b. Use the graphical solution procedure to find the optimal solution. [7 marks]

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c. Assume that the objective function coefficient for 𝑥 changes from 3 to 5. Does the
optimal solution change? Use the graphical solution procedure to find the new
optimal solution. [5 marks]
d. Assume that the objective function coefficient for x remains 3, but the objective
function coefficient for y changes from 2 to 4. Does the optimal solution change?
Use the graphical solution procedure to find the new optimal solution. [5
marks]

[Total: 20
Marks]

END OF THE EXAMINATION PAPER

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