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Bit 2212 Business Systems Modelling Exam

This document contains a business systems modeling exam with 4 questions. Question 1 has multiple parts asking about operations research methodology, queuing systems, and formulating a linear programming problem to maximize revenue for a firm producing 2 models. Question 2 asks about characteristics of operations research, assumptions in linear programming, describing a minimum cost flow algorithm, and differences between PERT and CPM. Question 3 asks about discussing merits and demerits of average rate of return and defining the critical path in a network. Question 4 asks about applications of network models, differentiating between directed and undirected paths/outlining a shortest path algorithm, drawing a network diagram and identifying the critical path, and defining profitability index and discussing cases when it is greater than

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260 views3 pages

Bit 2212 Business Systems Modelling Exam

This document contains a business systems modeling exam with 4 questions. Question 1 has multiple parts asking about operations research methodology, queuing systems, and formulating a linear programming problem to maximize revenue for a firm producing 2 models. Question 2 asks about characteristics of operations research, assumptions in linear programming, describing a minimum cost flow algorithm, and differences between PERT and CPM. Question 3 asks about discussing merits and demerits of average rate of return and defining the critical path in a network. Question 4 asks about applications of network models, differentiating between directed and undirected paths/outlining a shortest path algorithm, drawing a network diagram and identifying the critical path, and defining profitability index and discussing cases when it is greater than

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root parrot
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JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

BIT 2212: BUSINESS SYSTEMS MODELLING


DATE: APRIL 2016 TIME 2 HOURS
INSTRUCTIONS: Answer question one (compulsory) any other two questions
QUESTION ONE (30 MARKS)
(a) Outline and briefly explain the methodology involved in Operation research(7 marks)
(b) Discuss the entire queuing system or process (10 marks)
(c) A firm engaged in producing two models X 1 and X 2 which perform only three
operations, painting, assembly and testing. The relevant data is given below

Hours required to each unit

Unit sale price Assembly Painting Testing

Model X 1 30 1.0 0.2 0.0

Model X 2 50 1.5 0.2 0.1

Total number of hours available for each work are as follows, Assembly 600, painting 100
and testing 100.Formulate the linear program that will enable the firm to maximize revenue
(6 marks)
(d) A certain company produces 3 products A, B C which contributes a profit of Shs 8, 5 and
10 respectively. The production machine has 400 hrs. Capacity and each product uses 2,
3 and 1 machine hour respectively. There are 150 units available of a special component
with A using 1 unit and C using 1 Unit per unit. A special allow of 200kg is needed in
this period and product A and C uses 2kg and 4kg per unit. There is a limitation of
production of unit B to not more than 50. As a process of advising the company in order
to maximize the profit, Set up a maximization problem (Do not solve). (5 Marks)
QUESTION TWO (20 MARKS)
(a) State two characteristics of Operation Research (2 marks)
(b) State the assumptions in linear programming problems (6 marks)
(c) The minimum cost flow problem holds a central position among network optimization
models, Outline the algorithm (4 marks)
(d) Discuss the differences between Program Evaluation Review Technique (PERT) and
Critical Path Method (CPM) (8 marks)

QUESTION THREE (20 MARKS)


(a) Discuss the merits and the demerits of Average Rate of Return (ARR) (10 marks)
(b) Consider the network which starts from node 1 and terminates at node 6 with the time required
to perform each activity indicated on the arcs. Define the critical path and find the longest time
to move from node 1 to node 6.

(10 marks)

QUESTION FOUR (20 MARKS)


(a)State four applications of network models (2 marks)
(b) Differentiate between directed and undirected paths and outline the shortest path
algorithm for network problems
(2 marks)
(c) A project has been broken down into 10 activities with the following predecessors and
duration
activity predecessor Duration

A - 5

B - 7

C A, B 8

D - 10

E C 10

F B 5

G C, F, H 8

H D 12

I D 7

J I 9

Draw the network diagram and identify the critical path (6 marks)
(d) Define the Profitability index ( PI) and discuss the three cases and their economic
implications when PI > 1 , PI < 1 and PI = 1 (10 marks)

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