MBA 301

Operation Research

Part A (Short question answers)

1. Explain Artificial Variable.

2. Explain Degeneracy.

3. Give the primal-dual relationship.

4. What is Assignment problem?

5. What are various types of replacement problems?

6. Write a short note on Trans-shipment problem.

7. What do you mean by looping?

8. Explain Buffer stock.

9. What do you mean by strategy?

10. Discuss the applications of Dynamic programming.

Part B (long question answers)

1. Discuss briefly the importance of operations research in decision-making.

2. Orient paper mills produces two grades of Paper X and Y. Because of raw material restrictions not more that 400 tons of grade X and 300 tons of grade y can be produced in a week. There are 160 production hours in a week. It requires 0.2 and 0.4 hours to produces a ton of products X and Y respectively, with corresponding profits of Rs 20 and Rs 50 per ton. Formulate al linear programming problem to optimize the product mix for maximum profit.

3. What do you mean by replacement? Why it is needed? Explain the different replacement models used in operations research.

4. What is queue? Explain the basic elements of queue?

Part A (Short question answers)

1. Artificial variables have been introduced in the first basis only to make it feasible basis. They should not appear in the final solution. In order to eliminate them from final solution artificial variables should be assigned.

2. Degeneracy in a transportation problem arises when number of occupied cell is-less than to (number of column + number of row)-1. It may occur at the stage of initial allocation or at a later stage at the time of second or third allocation or even afterward in a more complex problem.

3. In order to explore the relationship between the primal and dual form of a linear program, let us put together the solution basis of primal as well as dual program forms of the linear program for them.

4. The name assignment problem arises from the classical problem, where the goal is to find an optimal assignment of origin to destination without assigning an origin more than once and ensuring that all destinations are completed. The objective might be to minimize the total time to complete the job or to maximize skill rating.

5. The various types of replacement problem are

a. Replacement of equipmentb. Replacement of Mortality & staffingc. Miscellaneous replacement.

6. In this problem it is assumed that the source acts only as shipper of goods and the destination acts only as receiver of goods. We shall now consider the broader class of transportation problem called as trans-shipment problem which allows for the shipment of goods from one source to another.

7. Looping error is also known as cyclic error in a network diagram. Drawing an endless loop in network is known as an error of looping.

8. Inventory of inputs held as a reserve against short term shortage and/or to dampen excessive fluctuation in the prices of commodity and thus protect local exporter from wild & wings in world commodity price is called Buffer stock.

9. Pure strategy: - If the rule says to always take the same action is called pure strategy otherwise known as mixed strategy. A pure strategy consists of three interrelated components

a. Playersb. Actionsc. Payoffs

10. Applications of Dynamic Programming:

a. Basically concerned with finding a combination of optimal decision over a period of time

b. Used to handle problem with probabilistic variable but emphasis here will go on deterministic problem only.

Part B (Short question answers)

1. Importance of Operation research in decision making: - The use of computer support for decision making is companies and public transportation companies, banks and health care institutions use decision support in material and manpower planning, routing, scheduling is investment planning. The most advanced tools are based on mathematical models developed in operation research, which is referred to as “science of better.” The courses in this focus area cover basis is advanced technical topics is optimization, linear and integer programming, non-linear optimization network.

2. Replacement: - The old items has become in worse condition and work badly or require expensive maintenance so there is need of replacement for efficiency.

i. Need: - For operational efficiencyii. To reduce the time

iii. When life span of instrument have been dismissediv. When instrument gets break down

Different replacement model:

i. Replacement of equipment, whose efficiency deteriorates with timeii. Replacement of items that fails completely

iii. Problem of mortality and staffingiv. Miscellaneous problem:- for above mentioned replacement situations various of

replacement models are as follows:-a. Replacement of items that fails completely is expensive to be replacedb. Replacement of items whose efficiency deteriorates with timec. Replacement of human being in organizationd. Miscellaneous problems

3. Queue: - These are common situations which may take the forms of cars waiting for repair at an auto service centre, printing job waiting to be completed at print shop etc. It is an important part of service management and available tool for every operation manager.

Basic elements of queue:-

i. Size of the arrival population: - population size are considered to be either unlimited i.e. Infinite or limited.

ii. Pattern of arrival at the system: - Arrival is considered random when they are independent of one another is their occurrence cannot be predicted exactly.

iii. Behavior of the arrivals: - Most queuing models assure that an arriving customer is a patient customer.

iv. Queuing Length: - The length of time can be either limited or unlimited.v. Service time: - Service time may be either constant or random of service time is

constant; it takes the same amount of time to service each customer.vi. Service facility

vii. Service discipline

MBA 302

Corporate Legal Environment

Part A (Short question answers)

1. Explain illegal contract.2. Difference between express contract & implied contract.3. Explain fraud.4. Define Hundis.5. What is crossing of cheque?6. Discuss the concept of “Caveat Emptor”.7. Explain the term Marine Insurance.8. What is a corporate veil?9. What are promoters?10. Explain Direct taxes.

Part B (long question answers)

1. Discuss the circumstances under which consent is to be said to be free.2. What do you mean by discharge of a contract? What are various ways in which a

contract may be discharged?3. What is meant by negotiation? Explain various modes of Negotiation?4. Distinguish between a sale and an agreement to sell and explain fully essentials of a

contract of sales of goods.5. State the difference between Direct taxes and Indirect taxes.6. Write a note on:

a. Holdings Company

b. Statutory Company

Part A (Short question answers)

1. Illegal Contract: - If one or more essential elements of valid contract are missing then the contract is known as Illegal contract. The valid contract consists of there must be an agreement; parties to a contract must be competent painful consideration etc.

2. Difference between express contract and implied contract: -

a. Express contract: - When the contracts are made by the parties in writing or by word of mouth they are called as express contract.

b. Implied contract: - The contract which is outcome of any act or conduct of parties to the contract called as implied contract.

3. Fraud: - It includes any of the following acts committed by a party to the contract or with his convenience or by his agent with an intent to deceive another party there to or his agent or to induce him to enter a contract (1) A promise made without any intention or performing it. (2) The suggestion as a fact of that which is not true, by one who does not believe it to be true. Etc.

4. Hundis: - A system of remitting money, primarily in Islamic societies, in which a financial obligation between two parties is settled by transferring it to a third party, as when money owned by a debtor i.e. a creditor is paid by a person who owes the debtors money.

5. Crossing of cheque: - It is a direction to the paying banker by the drawer that payment should not be made across the counter. The payment on a crosses cheque can be collected only through a banker.

6. Caveat Emptor: - It is a property law doctrine that controls the sales of real property after the date of closing. Under the doctrine of caveat emptor, the buyer could not recover from the seller for defects on the property that rendered the property unfit for ordinary purpose.

7. Marine Insurance: - A contract of marine insurance is an agreement whereby the consumer undertakes to indemnify the assured in the manner and to the extent thereby agreed, against marine losses, that is to say, the losses incidental to marine adventures.

8. Corporate Evil: - It is a legal concept that separates the personality of a corporation from the personalities of its stock holders and protects them from being personality liable for ther firm debts and other obligation.

9. Promoters: - The person who assume the task of promotion are called promoters. The promoters may be an individual, syndicate, associations, partnership or company.

10. Direct Taxes: - It is demanded from the person who should pay it. Thus income tax is an example of direct tax. It is required to be paid by a person himself or income earned by him.

Part B (Short question answers)

1. The circumstances under which consent is said to be free which is not caused by:

a. Co-irises: - It is the committing or threatening to commit any act forbidden by the Indian penal code or unlawful detaining or threatening to detain the property to the prejudice of any person whatever with intention of causing any person to enter into agreement.

b. Undue-Influence: - It consists in the improper of power over the mind of one of the contracting parties by the other. A contract is said to be influenced by undue influence where relations subsisting between the parties are such that one of the parties is in a position to obtain an unfair advantage over the other.

c. Fraud : - It means and includes any of the following acts committed by party to the contract with and intent to deceive the other party there to or to induce him to enter into contract (1) Active concealment of fact by one having knowledge or belief of the fact. (2) Promise without any intention of performing it. (3) Any other act fitted to deceive (4) Any such act omission as the law specifically declares to the fraudulent. (5) Miss-representations: - it is an incorrect or false statement but the falsity or inaccuracy is not due to any desire to deceive is defraud the other party such a statement is made innocently the party making it to be true. (6) Mistakes: - It is defined as an erroneous belief on the part of the parties to the contract concerning something pertaining to the contract.

2. Discharge of contract: - A contract is said to be discharges, terminated or dissolved when the rights and obligations created by a contract come to an end. Different ways of discharge of contract:

a. Discharge of contract by performance or tender: - Where the parties have done whatever was placed under the contract, the contract comes to an end. The tender or offer of performance has the same effect as performance.

b. Discharge of contract by impossibility or performance: - A contract may be discharged because of impossibility of performance. There are two types of impossibilities (a) Impossibility may be inherent in the transaction (b) Impossibility may emerge later by the change of certain circumstances material to the contract.

c. Discharge of contract by operation of law: - It takes place in four ways (a) By death (b) By Insolvency (c) By merger (d) By the unauthorized attention of terms of written document.

d. Discharge of contract by Breach: - A breach of contract is one party failure, without a legal excuse, to live up to any rights of its promises under a contract.

3. Negotiations: - It means rights in an instrument can be transferred by one person to another either by delivery or by endorsement and delivery to enable the transfer to get a little in the instrument. Modes of Negotiation

(a) Pay A (b) Pay or Order (c) Pay to the order of A (iv) Pay A & B (v) Pay A or B (vi) Pay A or bearer (vii) Pay bearer

a. An instrument is called negotiable if it possesses the following features (a) freely transferable (b) Holders little free from defects (c) The holder can sue his own name (d) A negotiable instrument can be transferred infinity i.e. can be transferred any number of times till its maturity (e) A negotiable instrument is subject to certain pre assumption.

4. Difference between Direct Taxes and Indirect Taxes:

Direct tax is demanded from the person who should pay it. Thus income tax is an example of direct tax. It is required to be paid by a person himself or income earned by him.

Indirect tax is one which is demanded from one person with the expectations and intention that he shall indemnify himself from another.

Direct tax cannot be shifted to other, whereas indirect tax can be. In other word, direct tax is that tax whose impact & in credence falls on the same person, where as indirect tax is that tax whose impact is incidence falls on different person.

Direct tax reduces aggregate demand is hence damper prices on other hand, the indirect taxes are inflationary further, direct taxes are not as regressive as are the indirect taxes.

5. Holding Company: - Where a company has a control over another company it is known as holding company. A company is deemed to be under the control of another if

a. That other control the composition of its board of director

b. The other company hold more than half in normal value of its easily share capital (where a company had preference share holders, before commencement of this act, enjoying voting rights which that of equity shareholders purpose of control)