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03000ME372052001

Rs. 1000 and the holding cost of 1 unit per month is 50 paise. Shortage cost of
one unit is Rs. 30 per month. Determine the optimum manufacturing quantity
and the total inventory cost per year. Find the number of shortages. Also
determine the manufacturing time and time between set ups.

PART C
Answer any four full questions, each carries 10 marks.
Define with example the maximax criterion, the minimax criterion and the

Laplace criterion used in decision making under uncertainty.

Given below is a regret table:

Events

Suppose that the probabilities of the events in the table are P(E,) = 0.30;
P(E.) = 0.45 and P(E;) = 0.25. Calculate expected loss of each action and
interpret.

Solve the following game:

Player B

Player A

Explain decision tree analysis in decision making. Write two of its advantages
and disadvantages.

Write four limitations of game theory.

Explain the two phases in a simulation model.

What are random numbers and pseudo random numbers? How random numbers
are they generated?

What do you mean by Monte-Carlo simulation method in simulation? Explain
the main steps in Monte Carlo simulation.

Explain wait line simulation model and inventory simulation model.

Write any four applications of simulation.

CRE

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