XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

AUG NOV 2016

ROLL NO.:________________________

OPERATIONS/OPTIMIZATIONMODELS
FORMANAGERIALDECISIONS(OOMMG162)
QUIZ2
Oct25th2016
MaxMarks:30

MaxTime:45minutes

READTHESEINSTRUCTIONSVERYCAREFULLYANDABIDEBYTHEM
1. Thispaperhas8pages,ofwhich2pages(nos.78)areforroughworkonlyandwill
notbeevaluated.Writeyourname&rollnumberonPage1andyourrollnumber
onallotherpages.
2. Thereare15questions.Eachquestionhasonlyonecorrectanswer,whichmustbe
writtenintheemptyboxtotherightofthequestion.Awronganswercarries1
markandacorrectanswer,2marks.Thereisnonegativemarkfornotattempting
aquestion.
3. Useapentoanswer;answerswrittenwithapencilwillbemarkedwrong.Ensure
thatyouranswerisunambiguous;anyambiguitywillleadtheanswertobemarked
incorrect.
4. Theabilitytounderstandthequestionscorrectlyisalsobeingtestedinthisexam.
No clarification will be provided during the exam. Ambiguities (if at all) in
questionsoroptionscanbediscussedwiththeinstructorlater.

NO. MARKS

CORRECT

WRONG

TOTAL(30)

5. Youcanuseacalculator,howevertheuseoflaptop,mobilephone,calculatorona
smartphoneandallotherelectronicdevicesisstrictlyprohibitedduringtheexam.

Answerthenextthreequestions(Q13)basedonthisLP
MaximizeZ=X12X2
subjectto
2X1X2 2;
X1
8;
X2 6;
X10,X20
1.

ThevalueofX1intheoptimalsolutionwillbe
A. 8
B. 0
C. 4
D. 2
E. _______________________(IfADareincorrect,writethecorrect
numberhere,andwriteEinthebox).

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

2.

AUG NOV 2016

ROLL NO.:________________________

ThevalueofX2intheoptimalsolutionwillbe
A. 6
B. 2
C. 14
D. 8
E. ___________(IfADareincorrect,writethecorrectnumberhere,
andwriteEinthebox).

TheoptimalvalueofZwillbe
A. 0
B. 8
C. 4
D. 12
E. ________________(IfADareincorrect,writethecorrectnumber
here,andwriteEinthebox).

3.

4.

Solve the following nonlinear programming problem using only common

sense reasoning drawn from your understanding of the subject. All
variablesA,B,C,D>=0
MaximizeZ=15A5B3+C210D4
subjectto
A+8D<=8
2A+C<=18
AB>=2

TheoptimalvalueofZis:
A. 32
B. 560
C. 658
D. 226
E. ________________(IfADareincorrect,writethecorrectnumber
here,andwriteEinthebox).

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

AUG NOV 2016

ROLL NO.:________________________

Read this to answer the next three questions (Q 57): Super Bank is in the process of
devisingaloanpolicythatcangrantloansfromafundpoolofRs.150Crores.Thefollowing
tableprovidespertinentdataaboutavailabletypesofloans.
Typeofloan

Int.rate(%)

Baddebtratio

5
15
20
15
10

0.02
0.10
0.15
0.10
0.05

Education
Marriage
Travel
Startup
Home

Bad debts are unrecoverable and produce no interest revenue. Regulations require the
banktoallocateatleast15%ofthefundsloanedtostartupandmarriageloans.Toassist
theeducationintheregion,educationloansmustbeequaltoatleast40%oftheeducation,
travel, and startup loans. There is no other condition. The objective of Super Bank is to
maximize its net return, the difference between interest revenue and lost bad debt.
Formulate this problem as an LPP using X1 to X5 to denote the respective amounts (in Rs.
Crores)ofthefiveloansinthetoptobottomorderlistedabove(Education,X1toHome,X5),
andanswerthequestionsbelowbasedonthatformulation.
5.

TheobjectivefunctionwillbeMaxZ=
A.
B.
C.
D.
E.

0.018X1+0.025X2+0.030X3+0.025X4+0.045X5
0.029X1+0.035X2+0.020X3+0.035X4+0.045X5
0.029X1+0.030X2+0.025X3+0.030X4+0.045X5
0.018X1+0.035X2+0.025X3+0.035X4+0.050X5
_______________________________________________________
(IfADareincorrect,writethecorrectanswerhere,andwriteE
inthebox).

6.

Whichofthefollowingtwoconstraintswillappearintheformulation?
P:3X117X2+3X317X4+3X50Q:3X12X32X40
A.
B.
C.
D.

OnlyP,notQ
OnlyQ,notP
BothPandQ
NeitherPnorQ

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

7.

AUG NOV 2016

ROLL NO.:________________________

Which of the following constraints, if added to the formulation, will be

redundanttotheformulation?
A.
B.
C.
D.

X1+2X2+X3+X4+X5650
X1+X2+X3+X4+X5100
X1+2X2+X3+2X4+X5400
Noneoftheabove.

8. FastTrackShoesproducestwosizesofshoes.ApairofSize9shoesrequires
half as much labor time as a pair of Size 6. Given the total labor time
available, it is found that if we make 4 pairs of Size 9, we can make a
maximumof3pairsofSize6.Giventhis,ifwemakeonly2pairsofSize9,
thenwhatisthemaximumnumberofpairsofSize6thatcanbemade?
A.
B.
C.
D.
E.

6
5
4
3
________(IfADareincorrect,writethecorrectnumberhere,andwrite
Einthebox).

9. ItisknownthatattheoptimalsolutiontoanLP,therearetwobindingand
four nonbinding constraints. The slack (or surplus) of the respective
resourcesatoptimalitycanpossiblybe,
A.
B.
C.
D.
E.

9,0,0,4,2,0
0,9,0,4,12,2
0,4,0,0,8,0
0,8,4,0,9,0
Noneoftheabove

10. WhenthePrimal(P)isconvertedtoitsDual(D),thenwecanbesurethat
A.
B.
C.
D.
E.

thereisonedecisionvariableinDforeveryconstraintinP
theobjectivefunctioncoefficientsinPbecomeshadowpricesinD
thereisoneconstraintinDforeverydecisionvariableinP
Alloftheabove
AandConly

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

AUG NOV 2016

ROLL NO.:________________________

11. At the optimal solution, if the marginal value of a resource is 0, then it

meansthatatleast,
A.
B.
C.
D.
E.

oneactivityis0atoptimality.
oneconstraintRHSis>0.
oneslack(orsurplus)isnot0.
Cforsure,andpossiblyAalso.
Noneoftheabove.

12. It is known that product A, if produced, must be at least 2975 units in

quantity.Else,itshouldnotbeproduced.IfXArepresentsquantityofAand
YA represents a binary variable, then our formulation needs to have the
followingconstraint(s):
A.
B.
C.
D.
E.

OnlyXA2975YA>=0
BothXA2975YA>=0andXAMYA<=0
BothXA2975YA<=0andXAMYA>=0
OnlyXAMYA<=2975
Noneoftheabove.

13. Acompanyproducestwomodels,M1andM2,usingfivedifferentresources
and its objective is to maximize total profit. At the optimal solution, the
shadowpricesofthefiveresourcesare4,2,0,5and0respectively.
Weareconsideringaddingathirdmodeltotheproductline,whichwillyield
aunitprofitofRs.12.Foreachunitproduced,itconsumes2,0,6,1.5and0
unitsofthefiveresourcesrespectively.Isitadvisabletointroducethisnew
modeltotheproductmix?
A. Yes,itisadvisable.

B. No,itisnotadvisable.
C. Informationgivenisinsufficienttosayeitheryesorno,aswemust
also know how much unit profit the current models give and how
muchofeachresourcetheyconsume.

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

AUG NOV 2016

ROLL NO.:________________________

14. Aschoolbushastopickchildrenupfromfivedifferentlocalities(A,B,C,D
andE)inTownR.Eachlocalityisdirectlyconnectedtoeveryotherlocality.
ThebusbeginsatadepotlocatedinTownZandreturnstothedepotafter
delivery.Thebusmusttoucheachlocalityonceandonlyonce.Weneedto
find that route which maximizes the total distance traveled by the bus.
Assumedistancebetweenanytwopointsisthesameineitherdirection,for
all pairs of points. How many distinct solutions exist in this problem?
(solutionneednotmeanoptimalsolution)
A.
B.
C.
D.
E.

24
48
60
36
________(IfADareincorrect,writethecorrectnumberhere,and
writeEinthebox).

15. TwodaysaftertheOOMMendtermexam,adiscardedprintoutwasfound
inadustbinoutsidetheGMPquarters,containingthefollowingspreadsheet
of a transportation problem. All values were clear in the spreadsheet,
excepttheonemarkedX,whichhadwornoff.Fromtheothervaluesgiven
inthespreadsheet,wecanmakeoutthatXmustbe:

A.
B.
C.
D.
E.

4
1
2
ItisnotpossibletocomputeXmerelyfromtheavailableinformation.
________(IfADareincorrect,writethecorrectnumberhere,andwrite
Einthebox).

ENDOFQUESTIONS
6

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

ROLL NO.:________________________

FORROUGHWORKONLY

AUG NOV 2016

XLRI XAVIER SCHOOL OF MANAGEMENT

OOMMG16-2

TERM 2 (GMP 16-17)

NAME:_________________________________

ROLL NO.:________________________

FORROUGHWORKONLY

AUG NOV 2016