Reference no: EM132719852
MASC20004 Quantitative Methods for Business - Middle East College
Learning Outcome 1: Make decisions under different environments.
Learning Outcome 2: Schedule and manage projects by using PERT and CPM.
Learning Outcome 3: Tackle simulation games by using various strategies.
Assignment Objective
1. To test the understanding and application of Decision making concepts.
2. To test the calculation skills and Mathematical modelling ability of the learner.
3. To test the knowledge acquired by the learners on using quantitative techniques.
Assignment Tasks
Question 1. Write a brief note on Decision making in Business problems. List the classification of decision making methods according to the degree of certainty of data. Explain atleast two cases with a suitable example.
Question 2. A Factory manufactures three types of Cars. The fixed and variable costs are given below. (Refer ‘Instruction to students' for the values of a,b,c...)
|
|
Fixed Cost
|
Variable cost/unit
|
|
Car 1
|
400
|
(a + b + c)
|
|
Car 2
|
300
|
(b + c + d)
|
|
Car 3
|
500
|
(c + d + e)
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The demand is uncertain. If the demand is poor the factory expected to sell 200 units, if demand is moderate then it will sell 500 units and if it is high the sales is expected 1000 units. If sales prices of each type of car is 12,000 Omr/unit then
a. Prepare the payoff table.
b. Identify the decision taken under the pessimistic approach.
c. Identify the decision taken under Hurwicz criterion with the optimism (0.7).
3. Assume that you approach a Marketing company to sell your building located at three different places (a+b+c+d)/4 Muscat, Nizwa and Sohar. The Marketing Company charges % on each sale. (Refer ‘Instruction to students' for the values of a,b,c...). They accepted to sell the building at Muscat first. If it is sold, then based on the market condition either they stop selling further or continue to sell one of the other property. If they are not able sell the property with in a year then they will quit the contract with you. If they sold the second property then they again based on the market condition they may accept to sell the third property or stop selling the third property. The cost of the properties and probabilities of sales are given below. Draw a tree diagram for this decision process and derive a decision which is more beneficial for the Marketing Company. Do all the calculations properly rounded to four decimal places.
|
Building location
|
Price of building
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Selling Cost
|
Probability of selling
|
|
Muscat
|
25000
|
400
|
0.7
|
|
Nizwa
|
20000
|
600
|
0.5
|
|
Sohar
|
19000
|
750
|
0.4
|
4. Assume that you are planning for your annual vacation out side Oman. List out the important events (atleast 8) of this project with the time and cost estimates. You can use any open source data to finalize your budget and holiday availability. Find out the predecessor relations between them and present all the data in the standard table format. Briefly describe the whole process using 200-300 words. Properly give the reference to the data source.
5. Draw the Network diagram for the following project. Estimate the Earliest start time and Latest finish time for each activity. If every day it cost 200 rials for this project, estimate the total project cost. List the critical activities and total project duration. For each activity , completion time and the predecessor relations are given in the table below: (Refer ‘Instruction to students' for the values of a,b,c...)
|
Activity
|
Immediate
Predecessors
|
Duration
(Days)
|
|
A
|
-
|
2 + a + b
|
|
B
|
-
|
5 + b + c
|
|
C
|
-
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6 + c + d
|
|
D
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B
|
10 + e
|
|
E
|
A, D
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3 + f
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|
F
|
C
|
6 + b + c
|
|
G
|
E, F
|
8 + a
|
|
H
|
C
|
9 + b
|
6. Solve the following game for optimal strategy based on dominance method. (Refer ‘Instruction to students' for the values of a,b,c...)
|
9 + a
|
5 + b
|
4 + c
|
1 + c
|
|
13 + d
|
12 + e
|
11 + b
|
8 + b
|
|
16 + c
|
14 + e
|
9 + f
|
6 + d
|
|
12
|
6 + e
|
6 + f
|
4 + e
|