What is simulation? Describe the simulation process. State the major two reasons for using simulation to solve a problem. What are the advantages and limitations of simulation?

Five employees of a company are to be assigned to five jobs, which can be done by any of them. The workers get different wages per hour. These are: Rs 5 per hour for A, B, and C each, and Rs 3 per hour for D and E each. The amount of time taken by each employee to do a given job is given in the following table. Determine the assignment pattern that (a) minimizes the total time taken, and (b) minimizes the total cost, of getting five units of work done.

Solve graphically:

Minimize Z=6x₁ + 14x₂

Subject to

5x₁ + 4x₂ ≥ 60

3x₁ + 7x₂ ≤84

x₁ + 2x₂ ≥ 18

x₁, x₂ ≥ 0

A wholesaler supplies 30 stuffed dolls each day to various shops. Dolls are purchased from the manufacturer in lots of 120 each at Rs. 1200 per lot. Every order incurs a handling charge of Rs 60 plus a freight charge of Rs 250 per lot. Multiple and fractional lots can also be ordered, and all orders are met the next day. The incremental cost is Rs 0.60 per year to store a doll in inventory. The wholesaler finances inventory investments by paying its holding company 2% monthly for borrowed funds. How many dolls should be ordered at a time in order to minimize the total annual inventory cost? Assume that there are 250 week-days in a year. How frequently should he order?

What is the importance of integer programming models in supporting managerial decisions? Describe the rationale behind Cutting Plane Method used for solving integer programming models.