MS 51 IGNOU MBA Assignments Jan – June 2014

1. Explain computational aspect of simplex method for solving Linear Programming Problems (LPP). Take a problem and apply M- method for solving the LPP.

2. Five employees of a company are to be assigned to five jobs, which can be done by any of them. The workers get different wages per hour. These are: Rs 5 per hour for A, B, and C each, and Rs 3 per hour for D and E each. The amount of time taken by each employee to do a given job is given in the following table. Determine the assignment pattern that

(a) minimizes the total time taken, and

(b) minimizes the total cost, of getting five units of work done.

3. What is the importance of integer programming models in supporting managerial decisions? Describe the rationale behind Cutting Plane Method used for solving integer programming models.

4. (a) Minicomputer Company purchases a component for which it has a steady usage of 1,000
units per year. The ordering cost is Rs. 50 per order. The estimated cost of money invested in inventory is 25 per cent per year. The unit cost of the component is Rs 40. Calculate the optimal ordering policy and total cost of the inventory system, including purchase cost of the components.
(b) If, in this, the component supplier agrees to offer price discounts of minimum lot supplies as per schedule given, reassess the decision on the optimal ordering policy and the total cost as before.

5. Explain why simulation may be the only method in situations where it will be extremely difficult to observe actual environment.