OPERATION RESEARCH

FREQUENTLY ASKED QUESTIONS

Q 1. Explain application and scope of operations research.

Answer= The areas of management where techniques of Operations Research are applied are listed
below:
A. Marketing and Sales:
1. Advertising and media planning, 2. Product selection, timing and competitive strategies 3.
Recruitment of salesman, 4. Forecasting and decision trends,5. Pricing and competitive decisions,
6. Market research decisions.
B. Finance and Accounting:
1. Cash flow planning, 2.Credit policy analysis, 3. Investment policy for maximum return, i
4, Dividend policies, 5. Portfolio analysis, 6. Profit planning.
C. Personnel:
1. Selection of personnel, mixes of age and skills, 2. Recruitment policies and assignment of
jobs, 3. Manpower planning, wage administration, 4. Scheduling of training programmes.
D. Construction:
1. Allocation of resources to projects, 2. Determination of proper workforce, 3. Employment
of workforce, 4. Project scheduling, monitoring and control.
E. Facilities planning:
1. Factory size location decision, 2. Location and size of warehouse, distribution centres and
retail outlets, 3. Transportation, loading and unloading, 4. Logistics system design, layout.
F. Manufacturing:
1. Employment, training, layoffs, quality control, 2. Aggregate production planning,
assembly j,ne, blending, purchasing, 3. Production scheduling, production smoothing, 4. Inventory
control.
G. Purchasing and Procurement:
1. Bidding policies, 2. Vendor analysis, replacement policies, 3. Optimal buying and
reordering, % Materials transfer.
H. Maintenance and Project scheduling:
1. Preventive maintenance and maintenance policies, 2. Project scheduling and allocation of Purees, 3.
Maintenance crew size and scheduling, 4. Project management and strategic planning.
I. Research and Development:
1. Control of Research and Development projects, 2. Product introduction planning, 3. Organizational
design and control, 4. Decision support system and MIS.
Q 2. Explain the different techniques of Operations
Research.

[10 Marks]

Answer=The techniques can be related to certain typical questions that arise in the management of a
business since they are, in essence, aids to decision making.
1. Linear Programming; Linear Programming finds application in such allocation problems. It is a mathematical
model for determining how to use certain limited resources or capacities for a particular objective such as profit
maximisation or cost minimisation. The allocation problems may be classified into assignment modals, transportation
models or product mix problems.
2. Theory of Games: Developed by John Von Neuman and Oskar Morgensen, this is a
mathematical theory applicable to competitive business problems. It is concerned with a method
of determining an optimum strategy In the face of an opponent who will be having a strategy of
his own, not known to others. Strategy In this context is a master plan against an opponent, for
example, pricing a new product in a competitive market. The strategy chosen will also depend
upon the risk, the management is ready to take.
3. Network Analysis (PERT/CPM): Network analysis techniques like Programme Evaluation
and Review Technique (PERT) and Critical path method (CPM) are powerful management tools
for planning and control of complex jobs involving a large number of activities. It is possible to
estimate the project completion time and selectively. Control the progress of the project with the
help of these techniques. They also aid in scheduling activities and allocating resources to maintain
a high degree of utilisation, if not in making the optimal allocation.
4. Inventory Control: There will be fluctuations in the rate of consumption of a particular
material and also in the time lag between indenting and receipt. Inventory models incorporating
probability concepts take into account such fluctuations and enable determination of optimal
inventories for a specified risk level. The manager starts by admitting that in the long run, there is
always a chance of running out of stock, and then computes optimal stocking policy for the given
shortage criteria.
5. Dynamic Programming: Dynamic Programming is a technique which formulates this
procedure of getting towards the goal in a logical manner - the analyst takes an optimal decision
at each stage to the extent of his knowledge.
Dynamic programming can also be applied to problems of equipment replacement, trading in
fluctuating markets, allocation of sales force to market zones, and other similar areas where the
number of variables involved is not large, and the problem can be visualised in terms of making'
decisions in several stages.
6. Queueing Theory: Queueing theory establishes quantitative relationship between the
quality of service and the facilities required. The management can use judgement and develop
systems to balance costs and quality of service
 7. Simulation: Simulation is a working analogy of a system which brings out the effect of
interaction of relevant variables, on certain result areas. For instance, it is required to establish the
level of buffer stock to be maintained under the stipulation that not more than 1% of the times a
stock out can be tolerated. A simulation study can be carried out based on past usage pattern and
the time lag between indent and receipt of the item, assuming different stocking policies and
choosing the lowest buffer stock level satisfying the condition regarding permissible stock outs.
This involves use of random numbers and a large number of trials. Generally the amount of work
is so large that the use of a computer becomes inevitable.
Simulation is also applicable to several other areas like replacement of equipment or spares,
maintenance of work force, brand loyalty assessment, demand forecasting etc.
8. Reliability: Reliability theory is concerned with quantifying the frequency of failures and
developing indicator of quality and dependability of a product. It is closely associated with
probability theory and therefore facilitates statistical analysis and measurement.
The assessment of reliability of an equipment is most useful to the designer in improving the
quality of the critical parts as well as in deciding how much to provide by way of standby.
9. Replacement Models: Replacement theory helps in developing a strategy for replacement
for minimum Life Cycle cost. Some replacement models also incorporate the concept of value of
money in relation to time, for arriving at the best replacement strategy.
There is another category of items which do not deteriorate appreciably with age but suddenly
fail. Examples are electronic components and electric bulbs. Replacement theory using probability
concepts helps in determining the replacement strategy for such items at minimum overall cost.
10. Sequencing: Sequencing models have been developed to find a sequence for processing
jobs so that the total elapsed time for all the jobs will be a minimum. The models also help to
resolve the conflict between the objectives of maximising machine utilisation and complying with
predetermined delivery dates.

Q 3. Discuss limitations of LPP.

Answer=Some of these limitations can be stated as below.
(a) Divisibility of Resources: LP models are based on perfect divisibility of resources. It means
all solution variables should have any value, but in certain situation like in a product mix problem,
it can be fraction units.
(b) Linear Relationship: One of the basic assumptions of LPP is the linear relationship between
variables. But in actual practice many objective functions and constraints can be expressed
linearly. In case the relationship is non-linear the solution obtained by LPP cannot taken as correct.
(c) Certainty: In LPP coefficients of the objective function and the constraints equation must
IP known. These coefficients should not change during the period of study. But practically in real
life situation, this is not possible.
 (d) Conflicting multiple Goals: LPP also fails to give a solution if the management has
conflicting multiple goals in LP models there is always one goal which is expressed in the objective
function that is either maximizing the profit or minimizing the cost. If there are multiple goals,
then such situation can be solved by goal programming.
(e) Time Effect: LP model do not consider the effect of time. The solution to the problems is
good in case of static situation not in the case of dynamic situation.
(f) Complexity: If there are large number of variables and constraints, then formulated
mathematical model becomes complex. Its solution involves large number of preparation and
iteration
which can solved with the help of computer only.
7. Constant parameters: In case of LPP parameter involved in the models are always assumed
0 be constant but actually real life situation there are not constant or known.

Q 4. Explain the formulation of LPP.

Answer=Linear programming is one of the most widely used technique in managerial decision
making in business. Its application in Management can be understood from the following:
(i) Portfolio Selection: Managers often face the problem of selecting specific investments
from variety of alternatives. The objective function is usually maximisation of profit or
minimisation of risks. The constraints usually take the form of restrictions.
(ii) Financial Mix Strategy: Financial Mix Strategy involves devising ways of financing the
project and selecting a suitable mix. Using linear programming, decision can be made with regard
to how much production is to be supported by internaily generated funds and how much to be
supported by external funds.
(iii)Profit planning: Linear programming can also be applied for planning profits,
(iv) Media Selection problem: A linear programming problem can be formulated to resolve the
problem of selecting among different media available for advertising such as newspaper,
magazine, television etc. The objective is to obtain maximum coverage and exposure at the
minimum cost.
Manpower planning: Linear programming can be used to evaluate staffing requirements, Wm> promotion,
and retirement schemes.
(v) Job Allocation: Linear Programming is used in efficient allocation of jobs. Assignment technique
helps in assigning one job at a time to one person in such a way that the total cost for performing all jobs is
minimum,
(vi) Travelling salesman problem: LPP is also useful in finding the shortest route for a salesman starting
from a given city, visiting each of the specified cities, and then returning to the original point of departure.
This is done through the assignment technique.
(vii) Make-or-buy problem: When an organisation experiences unprecedented growth, its
production capacity becomes insufficient to meet the customer demand, in the short run, it then becomes
necessary to use a combination of "in-house" production and "outside" purchases from vendors having excess
capacity. It is here that linear programming helps in deciding how much to buy versus how much to produce
the objective being the minimisation of total cost (i.e. cost of purchase 4- cost of in-house production).

Q 5. Explain the simplex procedure for solving a

LPP.

[10 Marks]

Answer=The Simplex procedure:

The solution steps of the simplex method can be stated as follows:
(1) Formulate the linear programming model of the real world problem i.e. obtain a mathematical
representation of the problem's objective function and constraints.
(2) Express the mathematical model of L.P. problem in the standard form by adding slack
variables/subtracting surplus variables in the LHS of the constraints and assign a zero coefficient to the slack
variables in the objective function. Wherein a surplus variable is subtracted, an artificial variable is also added
in LHS of the constraint Azero and M as coefficient for surplus and artificial variable is added in the
objective function. M is considered a very large number so as to finally drive out the artificial variables out of
basic solution.
(3) Next, an initial solution is set up. The initial BFS is obtained by assigning zero value to decision
variables. This solution is now summarised in the initial simplex table. Complete the initial simplex table by
adding two final rows Zi and Cj Zj These two rows help us to know whether the current solution is optimum
or not.
(4) If all the elements or entries in the Cj - Zj row are negative or zero in case of maximisation , then the
solution is optimum. However, this situation may come after a number of iterations. If there exists some
positive number (in case of maximisation) and negative or zero (in case of minimisation) the current solution
can be further improved by removing one basic variable from the basis and replacing it by some non-basic
one.
(5) We now determine the variable to enter into the solution mix next. To do this we identify the column
with the largest negative value (in case of minimisation) and largest positive value (in case of maximisation)
in the CJ - Zj row. This becomes the key column.
(6) Next the departing variable is to be determined. This is accomplished by dividing each number in the
quantity (bi) column by the corresponding number in the key column. The row corresponding to the minimum
of these ratios is the key row and the corresponding variable in toe key row becomes the departing variable.
(7) The key element lies at the intersection of the key column and the key row in the siniplex table.
(8) Find a new BFS by constructing a new simplex table from the current one.
 (a) New values for the key row are computed by simply dividing every element of the key f0w by the
key element.
(b) The new values of the elements in the remaining rows for the new simplex table can be obtained by
performing elementary row operations on all rows so that all elements except the key element in the key
column are zero.
(c) New entries in the Zj column and bi column are entered in the new table of the current solution.
(d) Compute Zi and C} Zj If all the numbers in C} Zj row are either negative or zero (in case of
maximisation) and positive or zero (in case of minimisation), an optimum solution has been obtained.

Q 6. Solve the following using simplex method

Maximise Z=20x2+30x2
Subject to constraint:
3x1+ 3x2 36
5x1 + 2x2 50
2x1 + 6x2 60
X1, x20
Solution:
Given
Maximise Z=20x1 + 30x2
Subject to :
3x1+ 3x2 36
5x1 + 2x2 50
2x1 + 6x2 60
X1, x20
Introducing slack variables, we have
Maximise Z = 20x1 + 30x2+0S1+0S2+0S3
Subject to:
3x1+ 3x2+ S1 = 36
5x1 + 2x2+ S2=50
2x1 + 6x2+ S3 =60
x1,x2,S1,S2,S30

Initial simplex Tableau:

Cj 20 30 0 0 0
 Z1 Basic variables x1 X2 S1 S2 S3 bi b/aJ

0 S1 3 3 1 0 0 36 12
0 S2 5 2 0 1 0 50 25
0 S3 2 6* 0 0 1 60 10

j=Cj-Zj 20 30 0 0 0

*Key element
Key column

Second simplex Tableau:

Cj 20 30 0 0 0

Z1 Basic variables x1 X2 S1 S2 S3 bi b/aJ

0 S1 *2 0 1 0 -1/2 6 3
0 S2 13/3 0 0 1 -1/3 30 90/
13=6.92
30 X2 1/3 1 0 0 1/6 10 30

j=Cj-Zj 0 0 0 0 -5
* Key element
Key column
Second simplex Tableau:
Cj 20 30 0 0 0

Z1 Basic variables x1 X2 S1 S2 S3 bi b/aJ

0 x1 1 0 1/2 0 -1/4 3
0 S2 0 0 -13/6 1 -3/4 17
30 X2 0 1 -1/6 0 1/4 9

j=Cj-Zj 0 0 0 0 -2.5
* Key element
Key column
Since all values of j=Cj-Zj are negative or zero the solution Is optimal and therefore x1=3 units
and x2=9 units and maximum profit Z= 20x1+30x2 = 20(3)+30(9) = 60+270 = 330

Q 7. A marketing manager wishes to allocate his annual advertising budget of Rs 20,000 to two
media vehicles A and B. The unit cost of message in media A is Rs 1,000 and that in B it is Rs
 1500. Media A is a monthly magazine and not more than one insertion is desired in one issue. At
least 5 messages should appear in media B. The expected effected audience for unit messages in
the media A is 40,000 and for media B is 55,000.
(i) Develop a mathematical model.
(ii) Solve it for maximising the total effective audience.
Solution :
Step 1. The mathematical model is as follows:
Max. = 40,000x1 + 55,000x2
subject to, 1,000x1 + 1,500x2 20,000
x1 12
x2 5 or -x2 -5
and x1, x2 0
where x1 = annual number of insertions for medium A and
x2 = annual number of insertions for medium B.
The standard simplex form can be written as
Max. = 40,000x1 + 55,000x2 + 0.S1 + 0.S2 +0.S3
subject to, 1,000x1 + 1,500x2 + S1 = 20,000
x1 + S2 = 12
-x2 + S3= -5
and x1 x2, S1 S2, S3 0
where S1, S2 and S3 are slack variables introduced to convert inequalities into equalities.
Step 2. For initial solution, we use x1= 0, x2 = 0 and prepare the initial simplex table.

SIMPLEX TABLE I

Cj 40,000 55,000 0 0 0 Ratio

Zj Basic variables x1 X2 S1 S2 S3 bi bi/aij

0 S1 1,000 1,500 1 0 0 20,000 40/3

0 S2 1 0 0 1 0 12
0 S3 0 -1 0 0 1 -5 5
j = Cj - Zj 40,000 55,000 0 0 0

Step 3. Since values of Dj are zeros or positive, the solution is not optimal.
Step 4. The initial solution indicate highest D j= 55,000 and hence x2 becomes the entering variable
and this column as key column. Lowest ratios variable S3 becomes the outgoing variable. Thus S3
is to be replaced by x2 in the next improved iteration.
Step 5. As per the above step, the key element turns out to be -1.
 Step 6. New simplex table thus can be written as
SIMPLEX TABLE II
Cj 40,000 55,000 0 0 0 Ratio
j Variables mix x1 X2 S1 S2 S3 bi b/aij
0 S1 1,000 0 1 0 1,500 12,500
0 S2 1 0 0 1 0 12
55,000 X2 0 1 0 0 -1 5
j = Cj j 40,000 0 0 0 55,000

Step 7. Testing for optimality, we find that solution is not optimal yet, because values of Dj are
either positive or zeros. Proceed to step 8.
Step 8. Having obtained the condition that outgoing variable S1 is to be replaced by the entering
variable S3, we get the revised simplex table as follows : (Key element being 1,500).
SIMPLEX TABLE III
Cj 40,000 55,000 0 0 0 Ratio
j Variables mix x1 X2 S1 S2 S3 bi b/aij
0 S3 2/3 0 1/1,500 0 1 25/3 25/3
0 S2 1 0 0 1 0 12 12
55,000 X2 2/3 1 1/1,500 0 0 40/3 20
Dj = Cj j 10,000/3 40,000 -110/3 0 0

The solution is still not optimal due to positive value of Dj Hence maximum Dj indicates x1 column
as key column and x1 becomes the entering variable. Calculating ratios, we find the minimum
positive value for S2 and hence S2 is the key row. The variable S2 thus becomes the outgoing
variable with 1 as the key element.
SIMPLEX TABLE IV
Cj 40,000 55,000 0 0 0
j Variables mix x1 X2 S1 S2 S3 bi
0 S3 0 0 1/1,500 -2/3 1 1/3
40,000 X1 1 0 0 1 0 12
55,000 X2 0 1 1/1,500 -2/3 0 16/3
j = Cj j 0 0 -110/3 - 0
10,000/3

Since all the values of Dj are either zeros or negative, we have obtained the optimal solution.
Thus X1 = 12, x2 = 16/3 and
= 20,000/3 is the optimal solution
 S3 = 1/3 indicates unutilised capacity for medium B.

Q 8. Write an explanatory note on sensitivity analysis in LPP.

Answer=Sensitivity analysis in LPP :

Sensitivity analysis is a post optimality analysis and is an integral part of the OR work, it is the
control over the solution, when non-controllable parameters change which may affect the
controllable parameters and the optimality of the solution may change.

In a LPP we presume that the parameters of cost decision variables and constraints are
deterministic and constant. However, they may be subject to error and cost and resources may
change with time slightly or substantially. This uncertainty of parameters may be a cause of doubt
about the optimality of the solution. The sensitivity analysis is thus, a tool to assess the change in
the optimal solution due to variations in the original parameter values in the discrete fashion.

There can be five types of discrete changes in the original LP model needing assessment or
investigation during this post-optimality analysis :
(a) Cj , the unit cost or profit associated with both basic and non-basic decision variables.
(b) bi , the resources availability
(c) aij , indicating consumption of resources per unit of product
(d) Any addition of a new variable to the problem (at a later date)
(e) Any addition of a new constraint to the original problem
Change in Cj : Since Cj represents the profit cost per unit, an increase or decrease in Cj would
indicate the corresponding change in the resource utilisation i.e. diverting resources away from a
most profitable activity.
Change in bi - Any change in the values of bi , i.e., the right hand side of the constrain does
not affect the optimality condition. It only affects the values of the basic variables- values of the
objective function, in the determination of the solution values.
Change in the input coefficients (aijJ): When the elements of changed, there can be two cases
worth considering :
1. Change in aij for the columns in basic matrix
2. Change in aij for the columns which do not belong to the basic matrix.
The change in the values of aij associated with non-basic variables in the optimal simplex table
can be analysed by forming a corresponding dual constraint from the original set of constraints i.e.
m
aij , yi Cj for xj non-basic variables
i=1

Addition of new variables: When we add another variable, there will be an extra column,
the following situations arise :
1. Cn+1 Z n+1 0 the solution remains optimal
2. Cn+1 Z n+1 > 0 then the solution can be improved by introducing a new column into the
bases and the complex method is continued for obtaining a new optional solution.
Addition of a new constraint (ROW) :
 Addition of a new constraint would mean a simultaneous change in the coefficient Cj as well
as coefficients atj of the corresponding non-basic variable. Thus it will the optimality of the
problem.

Q 9. Assignment model is a particular case of transportation model" - "Explain briefly. Give an

example of assignment problem.

Answer=Each assignment problem has a table, or matrix, associated with it. This table is similar
to that for transportation problem. Generally, the rows contain the objects or people we wish to
assign, and the column comprises the jobs or tasks we want them assigned to. Given n facilities
(or resources) and n jobs (or activities) and effectiveness (in terms of cost, time, profit etc) of each
facility (resource) for each job (activity), the problem lies in assigning each resource to one and
only one activity so that the given measure of effectiveness is optimised. The assignment problem
is thus a special case of transportation problem where supply (or availability) of each of the
resource and the demand (or requirement) at each of the destinations is taken to be unity.
Assignment problems are special class of linear programming problems which involve
determining most efficient assignment-of people to projects, jobs to machines, salespersons to
territories, contracts to bidders, classes to rooms and so on. The desired objective is to minimize
total costs or time required to perform the tasks at hand. The problem can be illustrated by the
following table -
Workers Jobs
A B C D
1 C1a C1B C1C c1D
2 C2a C2B C2c C2D
3 C3a C3B C3C C3D
4 C4a C4B C4C C4D
Cost or time taken by workers on various jobs is indicated in matrix cells as Cij. One person
can perform only one job. The problem is to assign which job to a particular work at a minimum
total cost or minimum total time required to perform the job.

Q 10. Find the sequence and total elapsed time required in performing the following jobs on three
machines in the order ABC. Processing times (in hrs) are given in the following table.

Job 1 2 3 4 5
Machine A 8 10 6 7 11
B 5 6 2 3 4
C 4 9 9 6 5

Solution:
Here min A = 6, Max B = 6, min C = 4
Step I : Calculation of processing time
 Job Processing times Processing times
G = (A+B) H = (B=C)
1 13 9
2 16 15
3 8 10
4 10 9
5 15 9

Step 2: Optimal sequence

3 2 1 4 5
Step 3: Calculation of elapsed time
Job Machine A Machine B Machine C
Time in Time out Time in Time out Time in Time out
3 0 6 6 8 8 16
2 6 16 16 22 22 31
1 16 24 24 29 31 35
4 24 31 31 34 35 41
5 31 42 42 46 46 51
Conclusion:
Minimum elapsed time = 51 hrs. Idle time: A = 9 hrs B = 31 hrs. C = 19 hrs

Q 11. Five jobs pass through 3 machines. X, Y, Z In the order XYZ. Processing times in each
machine is given in minutes.
Machines
Jobs X Y Z
1 11 7 6
2 12 8 11
3 9 6 9
4 8 5 5
5 13 6 6
Find the best sequence the will minimise the total elapsed time. Find the idle time of each
machine. Solution:

Answer=From the elapsed time given on three machines it is clear that the smallest processing
time on machine X i.e. 8 minutes is equal to the maximum elapsed time on machine Y i.e. 8
minutes, hence solution is possible. Now, we add the processing times of different jobs on
machines X and Y and machines Y and Z respectively as follows;

Job Processing Time

Gi = (Xi+Yi) H = (Yi + Zi)
1 11+7 = 18 7+6 = 13(4)
2 12+8 = 20(3) 8+11=19
3 9+6=15(2) 6+9=15
4 8+5=13(1) 5+8=13
5 13+6=19 6 + 6 = 12(5)
 The minimum elapsed time among the two combination of machines is 12 mins for Job 5
in the 2nd combination. Hence Job 5 will be processed last. Next minimum elapsed time is 13 mins
for Job 4 in the 1st combination; and for Job 1 in the 2nd combination. Hence Job 4 will be
processed first and Job 1 will be scheduled at the latest remaining position i.e. position 2 before
Job 5. Next minimum elapsed time is 15 mins on Job 3 in combination 1. Hence Job 3 will be
processed immediately after Job4 followed by Job2.
We thus get the following sequence:
Job 4 3 2 1 5
For determination of total elapsed time, a table can be drawn.
43215
Jobs X Y Z Y AND Z
(Idle Time)
4 0 8 8 13 13 21 8(Y), 13(Z)
3 8 17 17 23 23 32 4(Y), 2(Z)
2 17 29 29 37 37 48 6(Y), 5(Z)
1 29 40 40 47 48 54 3(Y),
5 40 53 53 59 59 65 6(Y), 5(Z)
Total elapsed time = 65 minutes
Total idle time on Machine Y = 27 mins
Machine Z = 25 mins
Best sequence 4 3 2 1 5

Q. 12=Explain the' advantages and drawbacks of CPM.

Answer=
Advantages of CPM:
1. Helps the top management to concentrate their attention to the critical activities and their
completion In time.
2. Provides the knowledge of critical and non-critical activities. This helps the management
to divert the resources from non-critical activities to the critical ones.
3. Provides a best way of planning and scheduling a large construction project.
4. Gives complete Information about the importance, duration, size and performance of an
activity.
5. Helps the management to get single time estimates and costs with higher accuracy.

Drawbacks of CPM:
1. Based on the assumption of precise known time for each of the activity in the project which
may not be true in real life situations.
 2. Does not incorporate statistical analysis in determining the time estimates.
3. It is difficult to use CPM as a controlling device for the simple reason that the entire
evaluation of the project-is to be repeated and a new critical path is to be found out each time when
certain changes are introduced In the network.
4. CPM was initially developed as a static planning model and not as a dynamic controlling
device.

Q 13 Distinguish between PERT and CPM.

Answer=
PERT CPM
1. A probabilistic model with uncertainty in 1. A deterministic model with well known
activity duration. The duration of each activity (single) times based upon the past
activity is normally computed from multiple experience. It therefore does not deal with
time estimates with a new to take into uncertainty in time.
account time uncertainty. These estimates
are used to arrive at the probability of 2. It is activity oriented as the results are
achieving any given scheduled date of considered in terms of activities or
project completion. operations of the project.
2. It is said to be event oriented as the results
of analysis are expressed in terms of events
or distinct points in the time of progress.
3. The use of dummy activities is not
3. The use of dummy activities is required for
necessary.
representing the proper sequencing
4. It is used for non-repetitive jobs
4. It is used for repetitive jobs
5. It is used for construction and business
5. It is applied mainly for planning and
problem
scheduling research programmes
6. CPM deals with costs of project schedules
6. PERT analysis does not usually consider
and their minimisation. The concept is
costs
applied mainly to CPM models.
7. PERT is an important control device too, for
it assists the management of controlling a
project by calling attention as a result of
 constant review to such delays in activities 7. It is difficult to use CPM as a controlling
which might causea delay in the projects device for the simple reason that one must
completion date. repeat the entire evaluation of the project
each time the changes are introduced into
the networks.

Q.14=The rate of arrival of customers at a public telephone follows Poisson distribution, 0 with
an average time of ten minutes between one customer and the next. The duration of a phone call
is assumed to follow exponential distribution with a mean time of three minutes.
(i) What is the probability that a person arriving at the booth will have to wait?
(ii) What is the average length of queue?
(iii)The Mahanagar telphone Ltd. will install another booth when it is convinced that the
customers would have to wait for at least three minutes for their turn to make a call. How
much should be the flow of customers in order to justify a second booth?
Solution:
Given that
Average time of 10 min between customer and next = = 10
Mean time = = 3x10 = 30
i) Probability that a person arriving at booth will have to wait is
10
=
= 30
= 1/3

30 30
ii) = = 3010
= 20 = 32

30 10 10 10 1
iii) = = 3010
30 = 20 30 = 6

Q 15 A self service stores employes one cashier at its corner. Nine customers arrive on an average
every 5 minutes while cashier can serve 10 customers in 5 minutes. Assuming Poisson distribution
for arrival rate and exponential distribution for service rate, find
(i) Average number of customers in the system
(ii) Average time a customer spends in the system
(iii)Average queue length.
Solution:

(i) Average no. of customer in system

Where,
= 9, = 10
9
= 9 customers
109
1 1 1
(ii) W(s) = = 109
=
1
= 1 hour

10
(iii) = = 109
= 10 customers

Q 16. At an oil refining company, ships arrive to unload crude oil according to Poisson process
with mean rate of 8 ships per week. Service time is exponentially distributed with Q mean service
time of half day to unload one ship.
i) What is the average number ships waiting to deliver crude oil?
ii) What is the average time a ship must wait before it is taken for service?
iii) What is the average total time that a ship spends at the refinery?
iv) What is the probability that a ship has to wait for more than 2 days before getting the
service?
Solution:
= 8 per week, =8 x 7/4 = 14 per week.
(i) Average number of ships waiting to deliver crude oil
2 8x8 64
Lq = ()
= 14(148)
= 14x6
= 0.76

(ii) Average time a ship must wait before taken for service

8 8
Wq = = = = 0.095 wks
( ) 14(14 8) 14x6
 (iii)Average total time a ship spends at the refinery
1 1 1
Ws = = = = 0.166 weeks
( ) 14(14 8) 6

(iv) Probability that a ship has to wait for more than 2 days before getting service

= ()

8 (148)x2 12
= e 7 = 0.57e 7 = 0.57(e)1.71 = 0.57x0.183
14

= 0.104

Q 17 Customers arrive at a one-window drive-in bank according to a Poisson distribution with

mean 10 per hour. Service time per customer is exponential with mean 5 minutes. The space in
front of the window including that for the serviced car accommodate a maximum of 3 cars. Other
U cars can wait outside this space.
(a) What is the probability that an arriving customer can drive directly to the space in front of
the window.
(b) What is the probability that an arriving customer will have to wait outside the indicated
space?
(c) How long is an arriving customer expected to wait before starting the service?
(d) How many spaces should be provided in front of the window so that all the arriving
customers can wait in front of the window at least 20% of the time.
Solution:
60
Given data: = 10 perhour = = 12 per hour
5
(a) Probability that an arriving customer can drive directly to the space in front of the
window
= P0 + P1 + P2

2
= (1 ) + ( ) (1 ) + ( ) 2 (1 ) = (1 ) [1 + + 2 ]

10 10 102
= (1 ) + [1 + + ] = 042
12 12 122
(b) Probability that an arriving customer has to wait outside the indicated space

= 1 [P0 + P1 + P2+ P3] = 1- P0 - P1 - P2- P3

3
= 1 0.42 {( ) (1 )} = 0.58 0.10 = 0.48

(c) Average waiting time for a customer in the queue

10
= = = 0.42 hours
( ) 12(12 10)

10 10
0 = 1 =1 = 0.16 1 = = (0 ) = (0.16) = 0.14
12 12