QAMD Tena Questions
QAMD Tena Questions
QAMD Tena Questions
1. Consider two models of color TV sets; Model A and B, are produced by a company to
maximize profit. The profit realized is $300 from A and $250 from set B. The limitations are
A. availability of only 40hrs of labor each day in the production department.
B. a daily availability of only 45 hrs on machine time
C. ability to sale 12 set of model A.
How many sets of each model will be produced each day so that the total profit will be as large
as possible?
2. A manufacturer of light weight mountain tents makes two types of tents, REGULAR tent and
SUPER tent. Each REGULAR tent requires 1 labor-hour from the cutting department and
3labor-hours from the assembly department. Each SUPER tent requires 2 labor-hours from the
cutting department and 4 labor-hours from the assembly department .The maximum labor
hours available per week in the cutting department and the assembly department are 32 and 84
respectively. Moreover, the distributor, because of demand, will not take more than 12 SUPER
tents per week. The manufacturer sales each REGULAR tents for $160 and costs$110 per tent to
make. Whereas SUPER tent ales for $210 per tent and costs $130 per tent to make.
Required:
A. Formulate the mathematical model of the problem
B. Using the graphic method, determine how many of each tent the company should
manufacture each tent the company should manufacture each week so as to maximize its profit?
C. What is this maximum profit assuming that all the tents manufactured in each week are sold
in that week?
3. Ashok Chemicals Company manufactures two chemicals. A and B which are sold to the
manufacturers of soaps and detergents. On the bases of the next moths demand, the
management has decided that the total production for chemicals A and B should be at
least 350 kilogram. Moreover, a major customers order for 125kilograms of product A
must also be supplied. Product A requires two hours of processing time per kilogram and
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product B requires one hours of processing time per kilogram. For the coming month 600
hours of processing time are available. The company wants to meet the above
requirements at a minimum total production costs. The production costs are birr 2 per
kilogram for product A and birr 3 per kilogram for product B. Ashok chemicals company
wants to determine its optimal product mix and the total minimum cost relevant there to.
5. Cookwell, a manufacturer of large size pressure cookers, produces and sells three models
of cookers. While market demands pose no restriction, the capacity to produce is
currently constrained by the limited supplies of special grade aluminum limited to
1500kg per week and machine processing time limited to 1200 hours per week. In order
to determine the optimal product mix to maximize weekly contribution, a linear
programming model as under was formulated.
X1 X2 X3 S1 S2
Zi _ _ _ _ _ _
Cj-Zi _ _ _ _ _ _
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a. Formulate the above problem as a linear programing model
b. Obtain optimal solution to the problem and determine the product mix that maximizes
total revenue, the total profit. (use graphical method)
7. A manager of a firm that assembles various electronic items wants to establish an optimal
production plan for making Tape decks. The manager has obtained the pertinent information
which is shown in the table below:
Item Assembly time Inspection time Packaging time cost per unit Price per unit
Type A 3 5 2 65 90
Type B 4 4 4 70 110
Type C 2 4 5 50 85
Available time 60 hours 72 hours 96 hours
a) Formulate the above LPP if the manager wants to maximize the total contribution of the output to
profit. [2 marks]
b) Write the problem in standard form and develop the initial tableau. [2 marks]
c) Determine the optimal solution using simplex. Identify the variables that are in solution at the
optimum and their values. [2 marks]
d) Identify the shadow prices and interpret each shadow price. [2 marks]
8. A transistor radio Co., manufactures models A, B, and C which have profit contribution of Birr
16, Birr 30 and Birr 50 respectively. The weekly minimum production requirements are 20 for
model A, 120 for model B, and 60 for model C. Each type of radio requires a certain amount of
time for the manufacturing of component parts, assembly and packaging. Specifically a dozen
unit of model A requires 3 hrs for manufacturing of component parts, 4b hrs for assembly and 1
hr for packaging. The corresponding figure for a dozen unit of model B is 3.5, 5 and 1.5 and for a
dozen unit of C are 5, 8, and 3 hrs. During the forth coming week, the company has availability
of 120 hrs of manufacturing, 160 hrs of assembly, and 45 hrs of packaging time.
Required:
a) Formulate the scheduling problem as LPM.
b) Solve the problem using simplex method
c) Identify basic and non basic variables at each iteration
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Transportation problem
1. Suppose that a firm has three factories / sources of supply /& four warehouses/point of
demand/. The firm's production capacity at the three factories, the demand for the four
destination centers located at various regions & the cost of shipping each unit from the
factories to the warehouses through each route is given as follows:
Destinations
Factory
W1 W2 W3 W4 Capacity
F1 3 2 7 6 5000
F2 7 5 2 3 6000
F3 2 5 4 5 2500
Demand 6000 4000 2000 1500 13500
Required:
a. Develop an initial feasible solution using NWCM & Compute the total cost.
b. Develop an initial feasible solution using least-cost method & compute the total cost.
2. Determine an initial feasible solution to the following transportation problem using
a. NWCM
b. LCM, &
c. VAM
Destination
D1 D2 D3 D4 Supply
A 11 13 17 14 250
Source B 16 18 14 10 300
C 21 24 13 10 400
Demand 200 225 275 250
4. Three garment plants are available for monthly education of four styles of men's shirts. The
capacities of the three plants are 45,000, 93,000 and 60,000 shirts. The number of shirts required
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in style "a" through "d" are 28,000, 65,000, 35,000 & 70,000, respectively. The profits, in $ per
shirt, at each plant for each style are shown below.
Table: The garment plants' profit.
STYLE
PLANT
a b c d
1 8 12 -2 6
2 13 4 3 10
3 0 7 11 8
How many shirts of each type to produce in each plant so that profit is maximized?
5. A dairy firm has three plants located in different regions. The daily milk production at each
plant is as follows:
Plant 1: 6 million liters.
Plant 2: 1 million liters, &
Plant 3: 10 million liters
Each day the firm must fulfill the needs of its four distribution centers. Minimum
requirement at each center is as follows.
Distribution center 1: 7 million liters
" " 2: 5 " "
" " 3: 3 " "
" " 4: 2 " "
Cost of shipping one million liters form each plant to each distribution center is given in the
following table in hundreds of dollar.
Distribution Center
D1 D2 D3 D4
P1 2 3 11 7
Plant
P2 1 0 6 1
P3 5 8 15 9
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respectively. The following railroad shipping costs per tone (in hundred dollars) have been
determined.
Warehouse L p Q
location
A 7 10 5
B 12 9 4
C 7 3 11
D 9 5 7
Because of rail road construction, shipments are temporarily prohibited from warehouse at city A
to L Cigarette Company.
A. Find the optimum distribution for XYZ Tobacco Company. (use VAM)
B. Are there multiple optimum solutions? If there are alternative optimum solutions, identify
them.
7. A manufacturer has distribution centers X, Y, and Z. these centers have 40, 20, and 40 units
of his product. His retail outlets at A, B, C, D, and E require 25,10,20,30, and 15units
respectively. The transport cost between each centers and each outlet is given in the
following table.
Distribution Retail outlet
centre A B C D E
X 55 30 40 50 40
Y 35 30 100 45 60
Z 40 60 95 35 30
Find the optimum cost using both stepping stone and MODI method.(use NWC method to find
the initial solution.
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Assignment problem
1. A department has five employees with five jobs to be performed .The time (in hours)
each man will take to perform each job is given in the effectiveness matrix.
Employees
A 10 5 13 15 16
B 3 9 18 13 6
C 10 7 2 2 2
7 11 9 7 12
Jobs
E 7 9 10 4 12
How should the jobs be allocated, one per employees, so as to minimize the total man-hours?
2. A company has four territories open, and four salesmen available for an assignment. The
territories are not equally rich in their sales potential. Based on the past performance, the
following table shows the annual sales (in $) that can be generated by each salesman in
each territory. Find the optimal assignment and the maximum expected total sales.
Territory
I II III IV
A 42 35 28 21
Salesmen
B 30 25 20 15
C 30 25 20 15
D 24 20 16 12
3. Five salesmen are to be assigned to five territories. Based on the past performance, the
following table shows the annual sales man in each territory. Find the optional
assignment.
T1 T2 T3 T4 T5
S1 26 14 10 12 9
S2 31 27 30 14 16
S3 15 18 16 25 30
S4 17 12 21 30 25
S5 20 19 25 16 10
4. MEGA printing press, a publisher headquartered in Addis Ababa, wants to assign three
recently hired college graduates, Marta, Bakcha and Hirut to regional sales districts in
Mekelle, Bahir Dare, and DireDawa. But the firm also has an opening in Gambela and
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would send one of the three there if it were more economical than a move to Mekelle,
Bahir Dar and Dire Dawa. It will cost Br. 1,000 to relocate Marta to Gambela, Br. 800
to relocate Baklcha there, and Br. 1,500 to move Hirut. What is the optimal assignment
of personnel to offices?
5. In the modification of a plant layout of a factory four new machines M1, M2, M3 and M4
are to be installed in a machine shop. There are five vacant places A, B, C, D and E
available. Because of limited space, machine M2 can not be placed at C and M3 cannot be
placed at A. the cost of placing of machine at place i (in $) is shown below.
Location
A B C D E
M1 9 11 15 10 11
Machine M2 12 9 - 10 9
M3 - 11 14 11 7
M4 14 8 12 7 8
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Decision theory
1. Consider the following payoff table for three alternatives, A,B, and C, under two future states
of the economy, good and bad.
Economic Conditions
Investment Good Bad
A $ 70,000 $ 25,000
B 120,000 -60,000
C 40, 000 40,000
Determine the decision using the following decision criteria.
a) Maximax
b) Maximin
c) Minimax regret
d) Hurwicz (α = 0.3)
e) Equal likelihood
2. An investor is considering investing in stock, real estate, or bonds under uncertain economic
conditions. The payoff table of returns for the investor’s decision situation is shown below
Economic Conditions
Investment Good Stable Poor
Stocks $ 5,000 $ 7,000 $ 3,000
Real estate -2,000 10,000 6,000
Bonds 4,000 4,000 4,000
Determine the best investment using the following decision criteria.
a) Equal likelihood
b) Maximin
c) Maximax
d) Hurwicz ( α = 0.3)
e) Minimax regret
3. A leading company in the textile industry has acquired another competing company and is
contemplating the future of one of its major plants in the city of Hawassa. The company is
considering three alternative decisions:
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I. Expand the plant and produce lightweight, durable materials for possible sales to the
military, a market with little foreign competition;
II. Maintain the status quo at the plant, continuing production of textile goods that are
subject to heavy foreign competition; or
III. Sell the plant now. If one of the first two alternatives is chosen, the will still be sold at
the end of the year. The amount of profit that could be earned by selling the plant in a
year depends on foreign market conditions. The following payoff table describes this
decision situation.
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unit manufacturing cost will be high due to underutilization of equipment. The projected
profit in thousands of dollars for ABC’s make or buy decision is shown below.
Decision alternatives Low Medium High
Manufacture component −20 40 100
Purchase component 10 45 70
The states of nature have the following probabilities:
P(low demand) = 0.35, P(medium demand) = 0.35, and P(high demand) = 0.30
A. a. Use a decision tree and EMV criterion to recommend a decision.
b. Use EOL criterion to determine the best alternative.
c. What is ABC’S optimal decision strategy with perfect information; calculate the
EPC and EVPI.
B. If the probabilities for the states of nature were not given, what would have been your
decision using each of these decision criteria. a. Maximax b. Maximin c. Minimax
regret d. Hurwicz (𝛼 = 1) 𝑒. Laplace
5. A bookstore sells a particular book of tax laws for Birr 100. It purchases the book for Birr
80/-per copy. Since, some of the tax laws changes every year. , the copies unsold at the end
of a year become outdated and can be disposed off for Birr 30 each. According to past
experience, the annual demand for this book is between 18 and 23 copies.
Assuming that the order for this book can be placed only once during the year, the
problem before the store’s manager is to decide how many copies of the book should be
purchased for the next year.For this problem, since the annual demand varies between 18 and 23
copies there are six possible events.
E1 : 18 copies are demanded, E4 : 21 copies are demanded
E2 : 19 copies are demanded E5 : 22 copies are demanded
E3 : 20copies are demanded E6 : 23 copies are demanded
Also, there are six possible strategies, or courses of action. They are:
A1 : buy 18 copies A4 : buy 21 copies
A2 : buy 19 copies A5 : buy 22 copies
A3 : buy 20 copies A6 : buy 23 copies
Let's assume:
The managers have agreed to assess their level of optimism at 60%.
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The book store observes from the past sales data that the proportion of times the number
of copies sold is 18, 19, 20, 21, 22, and 23 are respectively, 0.05, 0.10, 0.30, 0.40, 0.10,
and 0.05. Thus, in this problem there are 6 possible alternatives to choose from, and an
equal, number of states of nature, or events.
Required:
1. List the possible acts and events
2. Construct the pay- off table.
3. Choose among the various alternatives on the base of the following criterion:
a. Maximax decision rule d. Laplace Criterion
b. Maximin decision e. Hurwicz Criterion
c. Savage Minimax Regret Criterion
4. Calculate
a. Expected Monetary Value (EMV)
b. Expected Opportunity Loss
c. Expected Value of Perfect Information
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Game theory
1. Solve the following two person zero-sum game
Player B player B
I II I II
I 2 4 player A I -1 2
Player A II 5 3 II 3 -1
2. For each of the following payoff tables, determine the optimal strategy for each player
by successively eliminating dominated strategies
Player B
I II III IV
I 3 5 4 2
Player A II 5 6 2 4
III 2 1 4 0
IV 3 3 5 2
Player B
I II III IV V
I 8 7 6 -1 2
Player II 12 10 12 0 0
A
3. Find the saddle point for the game having the following payoff table.
A) B)
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B) Player B
I II
I 2 1
II 1 3
III 4 -1
IV 5 -2
C)
Player B
I II III
Player I 3 8 5
A II 6 2 7
III 4 5 6
5. Use the simplex method to find the optimal mixed strategies for the following payoff tables.
A) B)
C) D)
Player B Player B
I II III I II III
Player A I 1 1 3 Player A I -1 2 1
II 1 3 4 II 1 -2 1
III 3 3 1 III 2 2 -1
6. A MNC has decided to establish a plant either in Singapore, Denmark or India. The degree
of competition in the next five years is not certain. The companies expected return will
depend on whether the competition is weak, mild or strong as shown in the following matrix:
I II III
I 16 13 4
II 13 11 6
III 11 9 8
If a company’s managing board is conservative, where should they decide to establish the plant?
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Network models
1. An established company has decided to add a new product to its line. It will buy the
product form manufacturing concern, package is & sell it to a number of distributes selected
on a geographical basis. Market research has identified the volume expected & the size of
sales force required. The steps
Required:
b) Draw a network diagram.
c) Indicate the critical path the critical activities & the total project time
d) For each non-critical activity, find the slack
2. A research & development department is developing a new power supply for a console
television set. It has broken the job down into the following form:
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G C 1
H E,F 3
I G,H 10
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G: Author’s review of formatted pages F 2
H: Author’s review of artwork D 1
I: Production of printing plates G,H 2
J: Book production and binding C,I 4
Required:
A. Develop the associated network for the project.
B. Find the critical path.
C.
a. Calculate earliest start time and finish time
b. Calculate latest start time and finish time
D. Identify the slack time in the
Using the PERT three-estimate approach, the usual three estimates of the duration of each
activity have been obtained as given below.
A. Find the estimate of the mean and variance of the duration of each activity.
B. Find the mean critical path.
A. Find the approximate probability that the project will finish within 12 weeks.
5. For the same activities and activity interdependence in problem 3,above,the appraised value
of activity time estimate are developed in three estimates as follows:
A. Compute the expected activity time and standard deviation for each activity time,
assuming a normal probability distribution for each activity time.
B. Identify the critical path and expected time for completion of the project,
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C. What is the probability that all the activities on the current critical path will be completed
within 12 days?
6. A project consisting of twelve distinct activities is to be analyzed by using PERT. The
following information is given (time estimates are in days) [7.5 marks]
Activity Immediate Normal time
Predecessors (days)
A - 2
B - 3
C A 7
D A 5
E B 6
F B 9
G C,D 6
H E 6
I C,D 5
J G,H 3
K F 8
L J,K 5
A. For each activity, define Earliest start time, Earliest finish time, Latest start time, Latest
finish time, and Slack
B. Identify the critical path
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8. For the same activities and activity interdependence in problem 3,above,the appraised value
of activity time estimate are developed in three estimates as follows:
D. Compute the expected activity time and standard deviation for each activity time,
assuming a unimodal beat probability distribution for each activity time.
E. Identify the critical path and expected time for completion of the project,
F. What is the probability that all the activities on the current critical path will be
completed within 12 days?
9. Given the information below
Required:
A. Draw the network diagram; specify the normal, time, normal cost, crash cost, maximum
crash days, and cost per crash day for each activity. Assume linear relationships.
B. Compute the expected cost of the project (normal time).
C. Suppose that the company has to reduce the completion time by 7 days, how much would
it cost to reduce the completion time.
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Important Information
Form a group of five to ten students.
Only neat and complete answers will be credited.
Submission Deadline: February 07, 2022
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