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Q.1

Which of the following statement about LPP is correct ?

a. In linear programming, all parameters are probabilistic in nature

b. Objective function specify the dependent relationship between the
decision variables and the objective function
c. In an LPP, decision variables can be unrestricted in sign
d. For an LPP having n-decision variables, there must be an equal member
of constraints

Attempt Correct Correct Ans. b

FAQ? Have any doubt? Solution

Q.2

If we were to use opportunity cost value for non-basic cell to test optimally
in transportation problem, it should be

a. equal to zero
b. most positive number
c. most negative number
d. any value

Attempt Correct Correct Ans. c

FAQ? Have any doubt? Solution

Q.3

Which of the following is correct?

a. In ABC analysis, the inventory items are classified into three categories on
the bases of their consumption rate.
 b. HML classifies items according as they are high usage, medium usage or
low usage
c. VED analysis deals with classification of items based on their availability.
d. XYZ analysis classifies items on the basis of their inventory value

Attempt Correct Correct Ans. d

FAQ? Have any doubt? Solution

Q.4

Maximize Z = 6x1 + x2 subject to constaints:

2x1 + x2 ≥ 3

x2 – x1 ≥ 0

x1, x2 ≥ 0

Which of the following statements is correct for the given LPP?

a. The objective function assumes a unique optimum solution

b. The objective function assumes the same optimum value at more than
one solution point
c. The value of the objective function increases indefinitely without
violating any of the constraints
d. The constraints are not satisfied simultaneously for the given LPP

Attempt Correct Correct Ans. c

FAQ? Have any doubt? Solution

Q.5

Five jobs are to be processed on three machines A, B and C in the order

ABC. The timings of the job are known to be:
(8, 5, 4), (10, 6, 9), (6, 2, 8), (7, 3, 6), (11, 4, 5)
The optimum sequence would be:

a. J1 → J4 → J2 → J3 → J5
b. J2 → J3 → J5 → J1 → J4

c. J3 → J4 → J5 → J1 → J4
d. J4 → J1 → J5 → J2 → J3

Attempt Correct Correct Ans. c

FAQ? Have any doubt? Solution

Q.6

The sales of a product during 4 consecutive months was 30, 32, 34 and 28.
The forecast for the corresponding months was 29, 40, 35 and 25. The BIAS
for the four periods will be

a. – 1.25
b. 1.25
c. – 1
 d. 1

Attempt Correct Correct Ans. a

FAQ? Have any doubt? Solution

Q.7

The total number of decision variable in the objective function of an

assignment problem with n jobs and n machines is

a. n2
b. 2n
c. 2n – 1
d. n

Attempt Correct Correct Ans. a

FAQ? Have any doubt? Solution

Q.8

Which of these statements is NOT correct?

a. For every prohibited assignment, the given cost element is replaced by M,

which is a very large value.
b. Multiple optimum assignment schedules may have different objective
function values
c. The dual variable for an assignment problem are given by ui and vj values
of the optimum solution to the transformed transportation problem
d. The variables of the dual problem of a given assignment problem may be
unrestricted in sign

Not Attempt Correct Ans. b

FAQ? Have any doubt? Solution

Q.9

Four experts A, B, C and D examined an activity and arrived at the following

time estimates.

Which expert is more certain about his estimates of time?

a. A
b. B
c. C
d. D

Attempt Correct Correct Ans. d

 FAQ? Have any doubt? Solution

Q.10

In a network, the critical path consists of 5 activities, the variance of the first
four activities is 5, 20, 10 and 6. If the standard deviation for the network is
7, the variance of the fifth activity is _________.

Attempt Correct Correct Ans. 8

FAQ? Have any doubt? Solution

Q.11

The monthly consumption of rice by a family is given in the table below :

The weights given to the period are 0.5 for immediate past and 0.2 for
periods before that. If the next
period’s forecast is found to be 8 kg, the value of x is _________.

Attempt Incorrect Your Ans. 27.5 Correct Ans. 5.5

FAQ? Have any doubt? Solution

Q.12

The network of a project with activity duration is indicated in the figure

below:

The slack of event 3 is __________ units.

Attempt Correct Correct Ans. 4

FAQ? Have any doubt? Solution
Q.13

The sales units, selling price per unit and variable cost per unit for A, B and
C are indicated in the table below.

Taking fixed cost of Rs. 40,000 the break even sales is ___________.

Attempt Correct Correct Ans. 80000

FAQ? Have any doubt? Solution

Q.14

PERT calculations yield a project length of 50 weeks, with a variance of 16.

The number of weeks within which the project is expected to be completed
with probability of 95% (where Z = 1.65) is ____weeks.

Attempt Correct Correct Ans. 57

FAQ? Have any doubt? Solution

Q.15

A company uses 2555 units for an item annually. Delivery lead time is 8
days. The reorder point (in number of units) to achieve optimum inventory is
__________.

Attempt Correct Correct Ans. 56

FAQ? Have any doubt? Solution

Q.16

The demand for a product during the last 5 years is given below:

The trend used for forecasting is y = 120 + 6x. The mean absolute error for
the five periods is ______.

Attempt Correct Correct Ans. 8.2

FAQ? Have any doubt? Solution
Q.17

An automobile manufacturing company experiences irregular but increasing

demand for their product. The demand was found to be 420 engines for
June and 440 engines for July. They used a forecasting method which takes
the average of past year demand to forecast future demand they forecasted
the average demand for June as 380 engines. The demand forecast for
August by using exponential smoothing method {α = 0.75}.

a. 410
b. 433
c. 450
d. 550

Attempt Correct Correct Ans. b

FAQ? Have any doubt? Solution

Q.18

A contractor has to supply 5000 bearings per day to an automobile

manufacturer. He finds that, when he starts a production run, he can
produce 15000 bearings per day. The cost of holding a bearing in stock per
one year is Rs. 2 and the setup cost of a production run is Rs. 1,100. How
frequently should the production run be made? (Take number of working
days in a year = 300)

a. 4 days
b. 10 days
c. 6 days
d. 8 days

Attempt Correct Correct Ans. b

FAQ? Have any doubt? Solution

Q.19

A company has four warehouses and six stores. The warehouses altogether
have a surplus of 22 units
of a given commodity, divided among them as follows:
Warehouses 1 2 3 4
Surplus 5629
The six stores altogether need 22 units the commodity. Individual
requirements at stores 1, 2, 3, 4, 5
and 6 are 4, 4, 6, 2, 4 and 2 units respectively.
If xij represents the number of units of commodity to be shipped from

warehouse to store, then which of

the following are correct?
 a. 1, 3
b. 1, 4
c. 2, 3
d. 2, 4

Not Attempt Correct Ans. a

FAQ? Have any doubt? Solution

Q.20

The following linear programming problem is given:

Minimize Z = 2x1 – x2 + 3x 3

Subject to constraints
2x1 + 4x2 + 3x3 ≥ 7

5x1 + x2 + 2x3 ≥ 3

7x1 – x2 – x3 ≤ 9

x1 – 2x2 + 5x3 = 6

4x1 + 7x2 – 2x3 ≤ 2

The objective function of the dual is

Maximize Z′ = 2w1 + 9w2 + 3w3 + 6w4 + 7w5

Which of the following is correct?

a. wj (j =1, 2, 3) ≤ 0
b. wj (j = 1, 4, 5) ≥ 0
c. wj (j = 3, 5) ≥ 0
d. wj (j = 4, 5) ≤ 0

Not Attempt Correct Ans. c

FAQ? Have any doubt? Solution

Q.21

Which of the following statements is incorrect?

a. Multiple optimum solutions are indicated if there are multiple zeroes

for ui and vj values in a transportation problem.
 b. For an optimum solution to a transportation problem, the ui and vj values
represent the optimum values of the dual problem
c. If each cost element in a transportation problem is increased or
decreased by a constant amount, it will not affect the optimum solution
to the problem
d. A maximization transportation problem is first converted to a
minimization one by subtracting each value of the given matrix from
largest value.

Attempt Correct Correct Ans. a

FAQ? Have any doubt? Solution

Q.22

Let (P) denote the linear programming formulation of a transportation

problem with m sources and n destinations, then the dual linear program of
(P) has

a. m × n variables and m × n constraints

b. m × n variables and m + n constraints
c. m + n variables and m + n constraints

d. m + n variables and m × n constraints

Attempt Incorrect Your Ans. c Correct Ans. d

FAQ? Have any doubt? Solution

Q.23

Which of the following statements are correct?

a. Degeneracy in an LPP leads to two different bases giving the same

feastible solution
b. When a corner point is the solution of two different sets of equality
constraints, then the condition is called degeneracy
c. It increases the number of iterations in a simplex formulation without
improving the solution in subsequent steps
d. All of these

Attempt Incorrect Your Ans. c Correct Ans. d

FAQ? Have any doubt? Solution

Q.24

An auto company manufactures cars and trucks. Each vehicle must be

processed in the paint shop and body assembly shop. If the paint shop were
only painting trucks, then 40 per day could be painted. If the paint shop were
only painting cars, then 60 per day could be painted. If the body shop were
only producing cars, then it could process 50 per day. If the body shop were
only producing trucks, then it could process 50 per day. Each truck
contributes $300 to profit, and each car contributes $200 to profit. What will
be the maximum profits of the company?

a. 100
 b. 120
c. 150
d. 180

Not Attempt Correct Ans. b

FAQ? Have any doubt? Solution

Q.25

The number of plates of food ordered per hour at a restaurant follows

Poisson distribution, with an average of 30 plates per hour being ordered.
What is the probability that the time between twoconsecutive orders is
between 1 and 3 minutes?

a. 0.19
b. 0.38

c. 0.5
d. 0.76

Attempt Incorrect Your Ans. c Correct Ans. b

FAQ? Have any doubt? Solution

Q.26

A company orders 2250 units every 1.5 month. The cost of one setup is Rs
500. The holding cost is Rs 0.15 per unit per month and the shortage cost of
one unit is Rs 20 per year. Percentage saving in total annual cost by
ordering EOQ will be ___________.

Attempt Correct Correct Ans. 10.51

FAQ? Have any doubt? Solution

Q.27

Consider an objective function Z = 6x + 8y subject to constants x + y ≤ 7 and

2x + 4y ≤ 4. The maximum value of the objective function is ____________.

Attempt Correct Correct Ans. 12

FAQ? Have any doubt? Solution

Q.28

Patients arrive at a clinic at the rate of 4 per hour and are examined at the
rate of 5 per hour. If there is a restriction of 10 people, the probability (in
percentage) that a patient is forced to leave without joining the queue is
__________.
 Attempt Incorrect Your Ans. 2.147 Correct Ans. 21.88
FAQ? Have any doubt? Solution

Q.29

The demand for a certain item is 10 units per period. Unsatisfied demand
causes a shortage cost of Rs. 0.8 per unit per shortage period. The cost of
initiating purchasing action is Rs. 15 per purchase and the holding cost is
10% of average inventory valuation per period. Item cost is Rs. 8 per unit.
The minimum cost purchase quantity is __________ units.

Attempt Correct Correct Ans. 28(27 - 29)

FAQ? Have any doubt? Solution

Q.30

A firm marketing a product has four sales men S1, S2, S3 and S4 and C1, C2

and C3 are the three customers. The probability of making a sale to a

customer by each salesman is given in the table below:

Profit obtained by selling one unit to C1 is Rs. 500 to C2 is Rs. 450 and to C3

is 540. Assuming that only one salesman can make a sale to a customer, the
total expected profit is Rs. ____________.

Attempt Incorrect Your Ans. 533 Correct Ans. 1156

FAQ? Have any doubt? Solution

Q.31

A T.V. Repairman finds that the time spent on his jobs has an exponential
distribution with mean of 30 minutes. If he repairs sets in the order in which
they come in, and if the arrival of sets is approximately Poisson with an
average rate of 10 per 8 hour day, the number of jobs ahead of the T.V. set
just brought in is _____________.

Attempt Correct Correct Ans. 1.67(1.5 - 2.5)

FAQ? Have any doubt? Solution

Q.32

A product manufacturing plant at a city distributes its products by trucks,

loaded at the factory
 warehouse. It has its own fleet of trucks plus trucks of a private transport
company. This transport
company has complained that sometimes its trucks have to wait in line and
thus the company loses
money paid for a truck and driver of waiting truck. The company has asked
the plant manager to either
go in for a second warehouse or discount prices equivalent to the waiting
time. The data available is :
Average arrival rate of all trucks = 3 per hour.
Average service rate is = 4 per hour
The transport company has provided 40% of the total number of trucks.
Assuming that these rates are
random according to Poisson distribution, the expected waiting time of
company trucks per day is
______________ hours.

Attempt Incorrect Your Ans. 1 Correct Ans. 7.2

FAQ? Have any doubt? Solution

Q.33

In a production system, the fixed costs are Rs. 5000 and the variable cost
and sale price are Rs. 10 and Rs. 15 per product respectively. The volume of
products which given a contribution margin of Rs. 6000 exceeds the break
even volume by ___________ units.

Attempt Correct Correct Ans. 200

FAQ? Have any doubt? Solution