Quantitative Methods – All quantitative techniques have hardly any real-life applications


  1. “All quantitative techniques have hardly any real-life applications.” Do you agree with the statement? Discuss


  1. A company makes two kinds of leather belts. Belt A is a high quality belt, and belt B is of lower quality. The respective profits are Rs 20 and Rs 15 per belt. Each belt of type A requires twice as much time as belt of type B, and if all belts were of type B, the company could make 1,000 per day. The supply of leather is sufficient for only 800 belts per day (both A and B combined). Belt A requires a fancy buckle, and only 400 per day are available. There are only 700 buckles a day available for belt B. What should be the daily production of each type of belts to maximize profit. Use simplex method.

  1. How can you formulate an assignment problem as a standard linear programming problem? Illustrate.


  1. The following are the timing in regard to two jobs J1 and J2, each of which requires to be processed on two machines A and B in the order ‘A following B’. In what sequence should they be performed so that the total processing time involved is the least? Also obtain the time involved.


Job                                             Time (Hours)


                                      Machine A            Machine B

J1                                          6                          8

J2                                          7                          3


          Use graphical method.

  1. What function does inventory perform? State the two basic inventory decisions management must take as they attempt to accomplish the functions of inventory just described by you.


  1. A truck owner finds from his past experience that the maintenance costs are Rs 200 for the first year and then increase by Rs 2,000 every year. The cost of the truck type A is Rs 9,000. Determine the best age at which to replace the truck. If the optimum replacement is followed, what will be the average yearly cost of owning and operating the truck? Truck type B costs Rs 10,000. Annual operating costs are Rs 400 for the first year and then increase by Rs 800 every year. The truck owner has now the truck type A which is one year old. Should it be replaced with B Type, and if so, when?


  1. What are the major comparative characteristics of the PERT model and the CPM model? What are their limitations, if any? Discuss.


  1. Describe the steps involved in the process of decision making.


  1. A person plays a game in which he gains Rs 20 with a probability of 0.4 or loses Rs 10 with a probability of 0.6. He has an amount of Rs 20 with him and plays the game repeatedly until he loses all the amount he has or adds Rs 30 or Rs 40 to the initial amount. Draw up a transition probability matrix of him.


  1. “Simulation is typically the process of carrying out sampling experiments on the models of the system rather than the system itself.” Elucidate this statement by taking some examples.