NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF ARTS AND SOCIAL SCIENCES
APRIL/MAY 2019 EXAMINATION

COURSE TITLE: OPERATIONS RESEARCH

COURSE CODE: ECO 314

UNITS: 2

TIME ALLOWED: 2 HOURS

INSTRUCTION: ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS.

1a) List and explain the five (5) assumptions in linear programming. (10 Marks)

1b) List and explain the four (4) main advantages of linear programming methods (8 Marks)

1c) List and explain the three (3) limitations of Linear Programming Model (6 Marks)

1d) List any six (6) differences between transportation and assignment problem (6 Marks)

2. Table 1. Supply and Demand of Cows

Suppose the table above gives us the supply of cows from three sources in the North and the demands by three locations in the Southern part of Nigeria. The quantities inside the cell represent the unit costs (in naira) of transporting one cow from one source to one location. Use the North West Corner method to allocate the cows in such a way as to minimise the cost of transportation and find the minimum cost. (20 Marks)

3a) What is a decision? (2 Marks)

3b) List and explain three (3) time estimates in Programme Evaluation and Review Technique (PERT) (6 Marks)

3c) Discuss the four (4) major components that constitute risk and uncertainty in decision making (12 Marks)

4a) Discuss the two (2) states involved in analysing a decision tree (6 Marks)

4b) List and discuss the four (4) scope of operations research in financial management (8 Marks)

4c) List six (6) characteristics of operations research (6 Marks)

5a) List and explain the five (5) elements of a system in terms of information system? (10 Marks)

5b) List and explain any five (5) forms of system (10 Marks)