a) Define the following terms;

i) Critical path method

ii) Game theory

iii) Transportation problem

iv) Measure of certainty

v) Predecessor activity

b) The table below shows a transportation problem. Solve it using the Vogel approximation method. Destinations Sources 1 2 3 4 Supply A 2 2 12 21 80 B 4 3 13 7 60 C 5 12 1 6 60 Demand 50 60 30 40

c) State five objectives of inventory management.

d) The following table shows a pay-off matrix for a game. Use it to solve the game.

e) State four characteristics of 2-persons zero sum game.

f) A companys ordering cost is sh 25 and the holding cost is 10% of average inventory. Given that the total cost is shs. 750, find the demand.

g) State the two categories of inventory models.