Management Science (MGTC3101)
Higher Institute of Commerce and Management (HICM)
Semester: First Semester
Level: 300
Year: 2016
INSTRUCTIONS: ANSWER QUESTIONS 1 AND TWO, THEN ANY ONE OTHER
Question one: (10 marks)
Define the following terms and expressions: Network, system, activity, model, effectiveness, efficiency.
decision making under risk, decision making under uncertainty,- PERT and CPM.
Question two: decision making /30 marks
Given the following information about a project
Activity
A
B
C
D
E
F
G
H
I
Duration (te)
8
10
8
10
16
17 -
18
14
9
Preceding activities
-
A
A
-
D
B.CJE
F
D
G,H
1.
Draw the network (10 marks)
2.
Draw the Gantt chart (10 marks)
3.
Determine the critical path. Indicate the method used (10 marks)
Question three: (30 marks)
The management of University of Buea Management Consulting Group (UNIBU-MCG) has to decide
between three available offers (al, a2, a3). There are four possible states of nature (Sl=High market
growth, S2=average market growth, S3=low market growth, S4=inflation). The costs of selecting al, a2
and a3 if SI occurs are 3, 8 and 3 respectively; if S2 occurs, the costs of selecting al, a2 and a3 are 7,4 and
S, but if S3 occurs, the costs will be 3 for al, 6 for a2 and 6 for a3; if S4 occurs, the respective costs are
1,2 and 4 for al, a2 and a3.
a. Put off the payoff table. (6 marks)
\ Find the best alternative using the following criteria:
b. Optimism. (6 marks)
c. Laplace, f (6 marks)
d. Regret (Savage). (6 marks)
Coefficient of optimism Hurwicz (with ยต=0.4). (6 marks)
Question four: Linear programming (30 marks)
Given:
Maximize z = 5X1 + 5X2
Subject to:
(1)
1X1 +2X2 <30
(2)
1X1+ 1X2 <19
Higher Institute of Commerce and Management
University of Bamenda
First Semester Examination
Management Science
Course Governors: Prof. Lerna / Mr. NEGOU
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(3)
8X1+3X2 <120
1.
Solve the problem graphically (Indicate the various steps undergone) (20 marks)
2.
Determine the optimal solution (s). Indicate the process (10 marks)
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