JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

POST GRADUATE DIPLOMA IN MANAGEMENT (RETAIL MANAGEMENT)

3rd Trimester
EXAMINATIONS

Roll Number: JL19RM020

Name: Kritika Chauhan
Batch: 2019 – 2021
Trimester: 03rd
Course code: ITO 304
Course Title: OR
th
Date: 09 April 2020
Day: Thursday
Start Time: 01:00 PM
Q2.

Game strategy for companies Zenon & maxo

1st alternative: simultaneous improvement time is 10 months
2nd alternative: crash improvement program

Pure strategies for Zenon company:

Strategy Product 1 Product 2

Simultaneous 10 months 10 months
Crash P1 8 months 15 months
Crash P2 15 months 8 months

Pure strategies for maxo Company:

Strategy Product 1 Product 2

Simultaneous 10 months 10 months
Crash P1 7 month 14 months
Crash P2 14 months 7 months

Market growth rate for both companies:

Zenon
Simultaneous 10%(increase)
2 months early 24% increase
4 months early 30% increase
6 months early 445 increase
maxo
1 month early 4% increase
3 months early 10% increase
5 months early 12% increase
8 months early 15% increase

PAYOFF MATRIX
M11: simul M12: crash P1 M13: crash P2 Min gain for
P1: 10M P1:7M, P2: 14M P1: 14M, P2: 7M Zenon
P2:10M

Z11: simul 10+10=20% -10+30=20% 30-10=20% 20%

P1: 10M, SADDLE
P2: 10M POINT

Z12: crash P1 24-12=12% -4-4=-8% 44-15=29% -8%

P1: 8M, P2: 15M

Z13: crash P2 -12+24=12% -15+44=29% -4-4=8% -8%

P1:15 M, P2: 8M

Max loss for 20% 29% 29%

Maxo
Lead player: C1 =zoom – left side – maximin
Second player C2 += Maxo – upper side minimax

Simultaneous strategy should be used by Zenon

The max and min value overlap, where the situation is called SADDLE POINT and the game is
known as GAME WITH SADDLE POINT. Here the saddle point is 20% which is the value of the
point.

This is a pure strategy, where the optimum strategy is for both players.

Q3.
Decision Variable: AM1, AM2, AM3, AM4, BM1, BM2, BM3, BM4, CM1, CM2, CM3, CM4
Here AM1 is the amount of steeling ton supplied from A port to M1 industry.

Objective Function:
Minimize Cost
=100*(60AM1+70AM2+100AM3+60AM4+90BM1+50BM2+70BM3+60BM4+90CM1+80CM2+40
CM3+60CM4)
Here 60AM1 is the ton of steel from Port to Mill M1 travelling 60 Km and transportation charge of
Rs 100 per ton per km

Subject to Constraint:
Supply NODE Constraint:
AM1+AM2+AM3+AM4=2000
BM1+BM2+BM3+BM4=3800
CM1+CM2+CM3+CM4=1600

Demand Node Constraint:

At Mill M1: AM1+BM1+CM1=1000
At Mill M2: AM2+BM2+CM2=1800
At Mill M3: AM3+BM3+CM3=2200
AT Mill M4: AM4+BM4+CM4=2400

Q1.
Savings = rs 5,00000

1st year
GRAPES SP
HONEY DEW 40 400
GOLDEN CRUST 35 350

2nd year
GRAPES SP
HONEY DEW 37.5 415
GOLDEN CRUST 42.5 350

Product’s demand is directly proportional to adv money.

In 1st year
I RS on advertisement money provides 0.1 honey dew bottle
Which concludes that 10 RS spent on adv money will give 1 bottle of honey dew.
2nd year
I RS on advertisement money provides 0.2 Golden Crust bottle
Which concludes that 5 RS spent on adv money will give 1 bottle of Golden Crust.

 Honey dew is sold 40-70% of all.

year 1
0.4(x+y) < x < 0.7(x+y)

Year 2
.4(x2+xy) < x2 < .7(x2 +y2)
Max exp year 1: a =50x, b-40y
A+B < = 5,00,000
Max exp year 2:
Assumption:
1) by using previous year profit, grapes can be brought.
2) ads can also be assumed based on profit gained last year.

A2 = 40.834x2
B2 = 44.5y2

A2+B2 <= profit of year 1

OBJECTIVE FUNCTION

YEAR 1
Maximize – 350x +310 y

YEAR 2
Maximize – 374.167x+305.5y

Q4.

1.
Optimum business
514 painting packets should be produced by the decorating store. And in the summer 437.14 glazing
packets which gives the optimum profit of 47957.14
The value of optimum profit is 47957.14.
The value of maximum production will get from the adjustable cell. No more profit above this will be
gained.

2.
Utilizing resources
Binding = limit reached
Non-binding = still left
Slacks = availability – utilization

CONSTRAINTS
In printing: 2160 resources are there, and all have been utilized.
It has got the status of binding because all the stock has been utilized.
Slacks = availability – utilization
In collation: 1800 printings are there, and resources are utilized, hence he slack value is zero.

PAINTING UNITS:
We have 514.28 resources and we can observe that 114.28 is left out of 514.28. hence the slack value
is 114.28, it is left and it is non-binding.

GLAZING UNITS:
437.14 units are remaining and we can observe that 137.14 units are left from 437.14 which means
that resources are left. And are non-binding.

3.
Analyzing the sensitivity report:

Pricing packets:
All increase = 1.25 & all decrease = 14.5
& the sensitivity range = (40.56.25)
The range lies in insensitive range even after change in objective coefficient. And the optimum policy
do not need to be changed. As the profit is still in insensitive range hence the policy remains same.
But if the profit changes and lies outside of insensitive range then the policy has to be changed after
solving the problem.

Glazing Packets:
All. Increase= 16.11 all. Decrease= 1
And the insensitivity range= (44,61.11)
The range lies in insensitive range even after change in objective coefficient. And the optimum policy
do not need to be changed. As the profit is still in insensitive range hence the policy remains same.
But if the profit changes and lies outside of insensitive range then the policy has to be changed after
solving the problem.

4.
Rs 100 is the additional charge of collation.
Here the shadow price of collation is 1.78 which means for the collation the company has purchased
the extra machine. It will result in huge loss as per unit addition of machine for collation will only
give profit of RS 1.78.
the shadow price profit becomes Rs 47957.14 + Rs 106.8= Rs 48063.94 and by reducing the agent
charge, final profit becomes Rs 47963.94 which is more than the optimum profit. So, the company
should hire the collation agent.

5. printing resources should be arranged because the shadow price is maximum which means if one
unit is increased then the profit will also be increased. The profit increase which will be done by
adding one unit of painting is Rs 20.71, which is the higher per unit profit which any of the recourse
can give. That is the reason we should choose painting as the resource.