Question 1a decision making is an essential part of the

Assignment Help Operation Research

Reference no: EM13349518

QUESTION 1

(a) Decision making is an essential part of the management process.
Comment.

(b) Distinguish between ‘decisions under certainty' and ‘decisions under uncertainty'.

QUESTION 2

A pensioner wants to invest upto an amount of Rs30,000 in fixed income securities. His dealer recommends investing in two bonds: Bond A yielding 7% and Bond B yielding 10%. After some deliberation, he decides to invest at most Rs 12,000 in Bond B and at least Rs 6,000 in Bond A. He also wants the quantity invested in Bond A to be at least equal to the amount invested in Bond B.

What should the broker suggest if the investor wants to maximize his return on investment? Solve graphically.

QUESTION 3

A Research Organisation has to decide whether to develop a new product, prototype A, or to keep the existing creation B. After discussions, it was agreed that the following scoring model would be helpful:

(a) Using an appropriate method, evaluate the model and indicate whether your results support the case for developing a new product prototype A or developing the existing product B.

(b) It has been agreed that the last two factors are of more importance.

Evaluate the model again, but this time give ‘product life expectancy' aweighting of 3 and ‘expected returns' a weighting of 2
Comment on your results.

QUESTION 4

A stockist of a particular commodity makes a profit of Rs 30 on each sale made within the same week of purchase, otherwise he incurs a loss of Rs 30 on each item. The data on the past sales are given below:
No. of items sold within the same week 5 6 7 8 9 10 11 Frequency 0 9 12 24 9 6 0

(a) Calculate the optimum number of items the stockist should buy every week in order to maximize the profit.

(b) Calculate the expected value of perfect information.

QUESTION 5

A company uses components at the rate of 500 a month which are bought at the cost of £1.20 each from the supplier. It costs £ 20 each time to place an order, regardless of the quantity ordered.

The total holding cost is made up of the capital cost of 10% per annum of the value of stock plus 3p per item per annum for insurance plus 6p per item per annum for storage plus 3p per item for deterioration.
If the lead time is zero, determine:

(a) the number of components the company should order

(b) the frequency of ordering

Reference no: EM13349518

Questions Cloud

Case studynetworks are evolving scalability presentation : case studynetworks are evolving. scalability presentation acts reliability safety measures and cost considerations are

Question 1interpret the subsequent cautiously and answer : question 1interpret the subsequent cautiously and answer the questions which followone large employer requests cvs from

Question 1in a era of economic recession and low room : question 1in a era of economic recession and low room occupancy devise and give explanation the outlines of a marketing

Questionconsider an adt called squarematrix the matrix can : questionconsider an adt called squarematrix. the matrix can be represented by a two-dimensional array of integers with

Question 1a decision making is an essential part of the : question 1a decision making is an essential part of the management process.comment.b distinguish between lsquodecisions

Questionq1 decide features and capacities ram disk storage : questionq1. decide features and capacities ram disk storage processor speed that amy should include in web server

Questionconsider a short 10-meter link over which a sender : questionconsider a short 10-meter link over which a sender can transmit at a rate of 150 bitssec in both directions.

Questionget the cylinder class from the base circle class : questionget the cylinder class from the base circle class. suppose the circle class has a protected member variable

Question the lbj company has budgeted sales revenues as : question the lbj company has budgeted sales revenues as given.aprilnbspnbspnbspnbspnbspnbsp maynbspnbspnbspnbspnbsp

User Account

All Pages