Operations Research — DU B.A. (Hons.) Business Economics (BBE) Previous Year Question Papers

(d) Expected Value of Perfect Information (EVPI) Name of the C6urse : B.A. (H) Business 1. Solve the following using simplex method Minimize: (18) The supply of each plant or factory, the deapand of each warehouse and per unit transportation cost are shown in the following table : FACTORY WAREHOUSE CAPACITY(SUPPLY) (a) Calculate EMV for each strategy (b) Calculate EOL I i'' ,4 (c) Find EVPI and (d) Select the best strategy Short Notes (Write on any 3) (a) Saddle Point (b) Characteristics of Operations Research (b) A company has two brands A and 8. The transition probabilities are : 80% of A customers stay with A, 20% REQUIREMENT(DEMAND) 600/o of a customers stay with 8, 400/o switch to A (i) Form the transition matrix Find the optimal solution using (i) North West Comer Method and (ii) Vogel's Approximation Method (VAM) and check its optimality using MODI (Modified Distribution Method) (ii) If initially 70% customers use A, find the j) distribution after 2 periods. (10,8) 3. Based on the following activities : 5. Explain the concepts of Expected Monetary value (EMV), Expected Opportunity Loss (EOL) and Expected Value of Perfect Information (EVPI) in decision- making under risk. Given the following pay off table and probabilities : 4. (a) Consider the integer programming problem: The problem has been solved till the below table: Basis XI X2 SI S2 RHS (a) Draw the network diagram. `.f [, (b)Determine ES, EF, LS, and LF for each . where Xl and X2 are integers. (d) Calculate Total Float, Free Float, and Independent (i) Check whether the solution is optimal and integer feasible or not. Give appropriate explanation for the same. (ii) If not, determine the final solution using Gomory cut method.