December, 2012
Ms-51 : Operations Research
1. (a) Experts believe that OR is a technique which help in resolving conflicts between Production, Finance, Marketing and Personnel functions of a manufacturing unit. Do you agree ? Justify your answer with the help of suitable examples.
(b) A company produces product A and B and has a total production capacity of 9 tons per day. A and B require the same production capacity. The company has a permanent contract to supply at - least 2 tons of A and at least 3 tons of B per day to another company. Each ton of A requires 20 machine hours production time and each ton of B requires 50 machine hours production time. The daily maximum possible number of machine hours is 360. All the firm's out put can be sold and the profit made is Rs. 80 per tons of A and Rs. 120 per tons of B. Determine the production schedule for maximum profit and also calculate the profit.
2. (a) What functions does inventory perform ? State the two basic inventory decision management must make as they attempt to accomplish the function of inventory described by you.