Buss 320: Quantitative Methods Question Paper
Buss 320: Quantitative Methods
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
KENYA METHODIST UNIVERSITY
END OF 3''RD ''TRIMESTER 2011 EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : BUSS 320
UNIT TITLE : QUANTITATIVE METHODS
TIME: 2 HOURS
Instructions:
Answer Question ONE (compulsory) and Any other TWO Questions
Question One
(i) Explain the terms critical path, total float, PERT and CPM in the network analysis
(4mks)
(ii) In a PERT network the critical path comprises of six activities whose estimated duration in weeks are given below:
Activity Optimistic Time (A) Most Likely Time (m) Pessimistic Time (B)
1-2
2-3
2-4
3-5
4-5
5-6 2
1
5
6
6
4 5
4
7
8
9.5
4 8
7
9
10
10
4
Required
Draw a project network
(5mks)
Find the expected duration and variance of each activity
(3mks)
Determine the critical path
(2mks)
(i) What is the object of the quelling theory? Discuss the fields of applications for queue
(3mks)
(ii) A fast food café employs one cashier at its counter. Nine customers arrive on an average every five minutes, while the cashier can serve 10 customers in five minutes assuming Poisson distribution for anival rate and exponential distribution for service rate, find
Average number of customers in the system
(2mks)
Average number of customers in queue or the average queue length (2mks)
Average time a customer spends in the system
(2mks)
Average time a customer waits before being served
(2mks)
(i) Briefly explain three areas where simulation can be applied
(3mks)
(ii) Quantitative methods has a wide application in managerial decision making. However, it has limitations. Discuss this statement (6mks)
Question Two
Five machines are available to process five jobs. Their processing times in hours are given below. The machine cost is sh100/hr for each machine
Jobs
Machines I II III IV V
A
B
C
D
E 3
7
5
5
6
10
9
7
3
4 3
8
6
8
10 1
1
1
1
1
8
7
4
4
6
Required
Determine the assignment, one job to one machine, that minimizes the total processing time
(14mks)
What is the total processing time for optimal assignment
(3mks)
What is the total optimal machine cost
(3mks)
Question Three
A firm manufacturing two types of medicines A&B can make a profit of sh. 20 per bottle of A and sh. 30 per bottle of B. Both A and B need for their production two essential chemical C and D. Each bottle of A requires 3 litres of C and 2 litres of D and each bottle of B requires 2 litres of C and 4 litres of D. the total supply of these chemicals are 210 litres of C and 300 litres of D. type B medicine contains alcohol and its manufacture is restricted to 65 bottle per month. How many bottles each of A and B should the firm manufacture per month to maximize its profit. Write the problem in the standard manner and solve it graphical (20mks)
Question Four
Solve the following using inverse method
3x + 7x = 11
3x + 4y = 10
Solve the following transportation problem sing the any suitable method (12mks)
W1 W2 W3 W4 Supply
P1 58 55 60 62 250
P2 70 65 75 74 370
P3 66 63 70 65 300
P4 68 73 72 71 260
Demand 190 310 410 270 1180
(Total 20mks)
Question Five
A company uses 100,000 units per year which cost sh. 30 each. Carrying costs are 1% per month and ordering costs are 250/order
What is the EOQ
(5mks)
How many orders will the company make each year
(3mks)
What is the length of order cycle
(3mks)
What would be the EOQ if the company made the items themselves on a machine with a potential capacity of 600,000 units per year
(7mks)
What the cost of having stock annually
(6mks)
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