Chapter 3.

Transportation
and Assignment Models
 Learning Objectives
After completing this chapter, students will be able
to:
1.Formulate the transportation, and assignment models.

2. Use the Least cost, northwest corner and vogel’s

approximation methods to find initial feasible
solution for transportation problem

3.Use stepping-stone and other methods like MODI to

find optimum solution for a transportation model.

4.Solve assignment problems with the Hungarian (matrix

reduction) method.
9-3
 3.1.The Transportation Problem
 Transportation problem is special case of a Linear
Programming Problem
 The transportation problem deals with the distribution of
homogenous goods from several points of supply (sources) to a
number of points of demand (destinations) or markets at a total
minimum cost
 Typically the objective of transportation model is to minimize
total transportation and production costs.
 The Key information important to solve the problem:

The capacities of each origin or source (Supply),

Demand of each destination and

Transportation cost per unit from each source to the

destination. 9-4
Assumptions of Transportation Model
1.Total supply is equal to total demand

2. Transportation cost per unit of goods are certainly

known and proportional to the number of units shipped
on a given route.

3. Goods are transported only from sources to

destinations.

4. The objective of the model is to minimize the total cost

of transportation while satisfying demand and supply
constraints.
Terminologies used in transportation model
 Basic Feasible Solution: if the number of the +ve allocation

are m+n-1

Where: m=number of rows (sources) and n=number of

columns (destinations)
 Degenerate basic feasible solution- if the number of allocation

in basic feasible solution is less than m+n-1

 Optimal solution: a feasible solution is said to be optimal

solution if it minimizes the total transportation cost

9-6
 Steps in transportation
problem modeling
Step 1: Formulate LPM for transportation problem
Step 2: Develop a transportation tableau
To A B C SS
From

1 A A A Y

2 A A A Y

3 A A Y
DD X X X X=Y

Where x= demand of each destination, DD=Demand capacity

y= supply of each source, SS=supply capacity
A= transport cost per unit
 Step 3: develop initial feasible solution

There are three major methods of finding and initial solution for

transportation problems:

1.North-West-Corner (NWC) method

2.Least-cost (LCM) method, and

3.Vogel’s approximation method (VAM)

Step 4: Check for optimality: two methods

1.Stepping stone method

2.MODI method (modified distribution method)

Example :1. ABC company has wheat grain elevators at three different
cities 1, 2, and 3.

These grain elevators supply three flour mills, located in Destination

A, Destination B, and Destination C.
Grain is shipped to the mills in trucks, each truck capable of holding
one ton of wheat.
Each grain elevator is able to supply the following number of tons
(i.e., trucks) of wheat to the mills on a monthly basis.

Grain Elevator Supply

Mill Demand
Source 1 (D). 150
Destination A. 200
Source 2 (E). 175
Source 3 (F). 275 Destination B. 100

Total 600 tons Destination C. 300

Total 600 tons

The cost of transporting one ton of wheat from each grain
elevator (source) to each mill (destination) differs according
to the distance and road system.
Mill (Destination)
Grain elevator A. B. C. ss
(Source)
1(D). 6 8 10 150
2 (E). 7 11 11 175
3 (F). 4 5 12 275
dd 200 100 300 600/600
Where: 6, 8, 10, 7, 11, 11, 4, 5, and 12 are unit shipping costs across the routes
Required :
a. Considering the above transportation table and find initial feasible solution
Using NWC, LCM, and VAM methods and compute transportation costs
corresponds to each
A). Northwest corner method (NWC)
Most systematic and easiest method for obtaining initial
feasible solution
Steps:
1.Allocate as much as possible to the cell in the upper left-hand

corner, subject to the supply and demand constraints.

2.Allocate as much as possible to the next adjacent feasible cell.

3.Repeat step 2 until all requirements have been met

NB: In the initial feasible solution SS and DD must be satisfied

and the NWCM considers only the location not cost
 Destination Destination Destination Supply
From (A) (B) © capacity

To
6 8 10

1(D) source 150 7 11 11 150

2(E) source 50 4 100 5 25 12 175
3(F) source 275 275
Demand 200 100 300 600
capacity
NB. 1. Check for Basic Feasible Solution: if the number of the +ve
allocation are equal to m+n-1….5=3+3-1

2. Total transportation cost (Min C) = 6(150) + 7(50) + 11(100) +

 B). Least cost method (LCM)
Takes in to consideration the lowest cost for allocation as a result takes
less time to solve the problem
Steps:
1.Allocate as much as possible to the feasible cell with the minimum

transportation cost.
2.Repeat step 1 until all requirements have been met.
A B C Supply capacity
From To

1(D) 6 25 8 125 10 150

2(E) 7 11 175 11 175
3(F) 200 4 75 5 12 275
Demand capacity 200 100 300 Ss=dd=600

3. Check basic feasible solution: Number of positive allocations=M+N-1

NB. Basic feasible solution: Min C = 8(25) + 10(125) + 11(175) + 4(200) +
 C). Vogel’s approximation Model (VAM)
VAM is based on the concept of penalty cost (PC) or regret

PC is determined by subtracting the lowest cell cost in the row or column from the

next lowest cell cost in the same row or column.

Step1: developing the penalty cost penalty cost is the difference between the
smallest cell cost and the next smallest cost cell in the same row/column.

Step 2: identify the largest penalty, it can be either from row penalty or column
penalty

Step 3: assign as many quantity as possible in the cell with the smallest cell cost
in the row/column with the largest penalty.

Step 4: make adjustment and develop new transportation table

Step 5: repeat step 1-4 until the assignment will be made.

 B C SSS Penality
From A Cost
To

1 6 8 10 150 2
2 7 11 11 175
4
1
3 4 5 12 275
Demand 200 100 300 600
Penality 2 3 1
Cost
VAM allocates as much as possible to the minimum cost cell in the
row or column with the largest penalty cost
Row 2 has the highest penalty cost of $4.
We allocate as much as possible to the feasible cell in this row with the
minimum cost.
In row 2, cell 2A has the lowest cost of $7, and the most that can be
allocated to cell 2A is 175 tons.

To A B C Supply
From PC

1 150 2
2 175 175
3 275
1
Demand 200 100 300 600
PC 2 3 1
Next, we repeat the previous step and allocate to the row or
column with the highest penalty cost, which is now column B
with a penalty cost of $3
The cell in column B with the lowest cost is 3B, and we
allocate as much as possible to this cell, 100 tons.

A B C Supply
From To PC
1 150
2
2 175 175
3 100 275
8
Demand 200 100 300 600

PC 2 1
Since the highest penalty cost is now $8 for
row 3 and since cell 3A has the minimum
cost of $4, we allocate 25 tons to this cell
A B C Supply
From To

1 6 8 150 10 150
2 175 7 11 11 175
3 25 4 100 5 150 12 275
Demand 200 100 300 600

Min C = 10(150) + 7(175) + 4(25) + 5(100) + 12(150)=5125

Conclusion: VAM &LCM provide better initial solution than
NWC
 Example 2.Transportation Table for
Executive Furniture Corporation
D- capacity
constraint

TO WAREHOUSE
WAREHOUSE - WAREHOUSE
- FACTORY
FROM A -C
B CAPACITY
$5 $4 $3
D-FACTORY 100

$8 $4 $3
E- FACTORY 300

$9 $7 $5
F-FACTORY 300

WAREHOUSE
300 200 200 700
REQUIREMENTS
Cell representing a
Total supply source-to-destination (E
Cost of shipping 1 unit from C- to C) shipping
and demand
F- factory to B-warehouse warehouse assignment that could
demand be made
9-19
 Developing an Initial Solution:
Northwest Corner Rule
 Once we have arranged the data in a table, we must
establish an initial feasible solution.
 One systematic approach is known as the
northwest corner rule.
 Start in the upper left-hand cell and allocate units to
shipping routes as follows:
1. Exhaust the supply (factory capacity) of each row before
moving down to the next row.
2. Exhaust the demand (warehouse) requirements of each
column before moving to the right to the next column.
3. Check that all supply and demand requirements are met.
 This problem takes five steps to make the initial
shipping assignments.

9-20
 Developing an Initial Solution:
Northwest Corner Rule
1. Beginning in the upper left hand corner, we assign
100 units from D-Factory to A-Warehouse. This
exhaust the supply from D-factory but leaves A-
warehouse 200 desks short. We move to the second
row in the same column.
TO FACTORY
(A) (B) (C)
FROM CAPACITY
$5 $4 $3
100 100
(D)

$8 $4 $3
300
(E)

$9 $7 $5
(F) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-21
 Developing an Initial Solution:
Northwest Corner Rule
2. Assign 200 units from E- to A-. This meets A’s
demand. E- has 100 units remaining so we move
to the right to the next column of the second row.

TO FACTORY
(A) (C)
FROM (B) CAPACITY
$5 $4 $3
100 100
(D)

$8 $4 $3
200 300
(E)

$9 $7 $5
(F) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-22
 Developing an Initial Solution:
Northwest Corner Rule
3. Assign 100 units from E- to B-. The E- supply has
now been exhausted but B- is still 100 units
short. We move down vertically to the next row in
the B-column.

TO FACTORY
(A) (C)
FROM (B) CAPACITY
$5 $4 $3
100 100
(D)

$8 $4 $3
200 100 300
(E)

$9 $7 $5
(F) 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-23
 Developing an Initial Solution:
Northwest Corner Rule
4. Assign 100 units from F-to B-. This fulfills B-’s
demand and F-still has 200 units available.

TO FACTORY
(A) (C)
FROM (B) CAPACITY
$5 $4 $3
100 100
(D)

$8 $4 $3
200 100 300
(E)

$9 $7 $5
(F) 100 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-24
 Developing an Initial Solution:
Northwest Corner Rule
5. Assign 200 units from F-to C-. This exhausts F-’s
supply and C- demand. The initial shipment
schedule is now complete.

TO FACTORY
(A) (C)
FROM (B) CAPACITY
$5 $4 $3
100 100
(D)

$8 $4 $3
200 100 300
(E)

$9 $7 $5
(F) 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-25
 Developing an Initial Solution:
Northwest Corner Rule
The cost of this shipping assignment:

ROUTE
UNITS PER UNIT TOTAL
FROM TO
SHIPPED x COST ($) = COST ($)
D A 100 5 500
E A 200 8 1,600
E B 100 4 400
F B 100 7 700
F C 200 5 1,000
4,200

This solution is feasible but we need to check to see

if it is optimal.
9-26
Method of checking for optimality: Stepping-
Stone
 The stepping-stone method is an iterative
technique for moving from an initial feasible
solution to an optimal feasible solution.
 There are two distinct parts to the process:
 Testing the current solution to determine if
improvement is possible.
 Making changes to the current solution to obtain
an improved solution.
 This process continues until the optimal
solution is reached.

9-27
 Testing the Solution for
Possible Improvement
 The stepping-stone method works by testing
each unused square in the transportation
table to see what would happen to total
shipping costs if one unit of the product was
tentatively shipped on an unused route.
 There are five steps in the process.

9-28
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
1. Select an unused square to evaluate.

2. Beginning at this square, trace a closed path

back to the original square via squares that are
currently being used with only horizontal or
vertical moves allowed.

3. Beginning with a plus (+) sign at the unused

square, place alternate minus (–) signs and plus
signs on each corner square of the closed path
just traced.

9-29
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
4. Calculate an improvement index by adding together
the unit cost figures found in each square containing
a plus sign and then subtracting the unit costs in
each square containing a minus sign.

Repeat steps 1 to 4 until an improvement index has

been calculated for all unused squares.

 If all indices computed are greater than or equal to

zero, an optimal solution has been reached.

 If not, means if negative, it is possible to improve the

current solution and decrease total shipping costs.
9-30
5. Reallocation (shipping) to the cell that shows
improvement index (with negative value index value) by
adding or subtracting the smallest quantity located in the
negative (-) signed cell
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
For the Executive Furniture Corporation data:

Steps 1 and 2.
2 Beginning with D-B route we trace a
closed path using only currently occupied squares,.

 To make closed path,

path move is possible only
horizontally/vertically
 Turning of the arrow is possible Only in occupied
square
Step 3.
3 Assign plus sign at beginning of the square
selected and alternately placing minus signs in the
corners of the path.
9-32
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
Evaluating the unused D–B Warehouse A Warehouse B

shipping route Factory

100
$5 $4
D
– +
Factory
+ $8 – $4
E 200 100

TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100

$8 $4 $3
E 200 100 300

$9 $7 $5
F 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS
9-33
 Five Steps to Test Unused Squares
with the Stepping-Stone Method

Step 4.
4 Now compute an improvement index (Iij) for
the D–B route.
Add the costs in the squares with plus signs and
subtract the costs in the squares with minus signs:

Des Moines–
Boston index = IDB = +$4 – $5 + $5 – $4 = + $3

This means for every desk shipped via the D–B

route, total transportation cost will increase by $3
over their current level.

9-34
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
Now examine the D-C- unused route which is slightly
more difficult to draw.

 Again, only turn corners at squares that represent

existing routes.
 Pass through the E –C square but we can not turn
there or put a + or – sign.
 The closed path we will use is:
+ DC – DA + EA – EB + FB – FC

9-35
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
Evaluating the D-C Shipping Route

TO FACTORY
A B C
FROM CAPACITY
$5 $4 Start $3
D 100 100
– +
$8 $4 $3
E 200 100 300
+ –
$9 $7 $5
F 100 200 300

WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS

Table 9.5

D–C improvement index

= IDC = + $3 – $5 + $8 – $4 + $7 – $5 = + $4

9-36
 Five Steps to Test Unused Squares
with the Stepping-Stone Method
Opening the D–C route will not lower our total shipping
costs.
Evaluating the other two routes we find:
E-C index
= IEC = + $3 – $4 + $7 – $5 = + $1
The closed path is
+ EC – EB + FB – FC
F–A index
= IFA = + $9 – $7 + $4 – $8 = – $2
 The closed path is
+ FA – FB + EB – EA
Opening the F-A route will lower our total
transportation costs because its improvement index is
negative 9-37
 Obtaining an Improved Solution

Step 5. Reallocation
 The quantity to ship is found by referring to the closed path of plus
and minus signs for the new route and selecting the smallest number
found in those squares containing minus signs.
 To obtain a new solution, that number is added to all squares on the
closed path with plus signs and subtracted from all squares the
closed path with minus signs.
 All other squares are unchanged.
 In this case, the maximum number that can be shipped is 100 desks
as this is the smallest value in a box with a negative sign (F-B route).
 We add 100 units to the F-A and E-B routes and subtract 100 from
F-B and E-A routes.
 This leaves balanced rows and columns and an improved
solution.

9-38
Obtaining an Improved Solution

Stepping-Stone Path Used to Evaluate Route F-A

TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100

$8 $4 $3
E 200 100 300
– +
$9 $7 $5
F 100 200 300

WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS

9-39
 Obtaining an Improved Solution
Second Solution to the Executive Furniture Problem

TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100

$8 $4 $3
E 100 200 300

$9 $7 $5
F 100 200 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

Total shipping costs have been reduced by (100

units) x ($2 saved per unit) and now equals $4,000.
9-40
 Obtaining an Improved Solution
Path to Evaluate the E-C Route
TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100

$8 $4 $3
E 100 200 Start 300
– +
$9 $7 $5
F 100 200 300

WAREHOUSE
+ –
300 200 200 700
REQUIREMENTS

An improvement can be made by shipping the

maximum allowable number of units from E to C.
9-41
 Obtaining an Improved Solution
Total cost of third solution:

ROUTE
DESKS PER UNIT TOTAL
FROM TO
SHIPPED x COST ($) = COST ($)
D A 100 5 500
E B 200 4 800
E A 100 8 800
F A 100 9 900
F C 200 5 1000
4,000

9-42
 Obtaining an Improved Solution
Third and final optimal solution: TC=3900

TO FACTORY
A B C
FROM CAPACITY
$5 $4 $3
D 100 100

$8 $4 $3
E 200 100 300

$9 $7 $5
F 200 100 300

WAREHOUSE
300 200 200 700
REQUIREMENTS

9-43
 Unbalanced Transportation Problems

 In real-life problems, total demand is frequently

not equal to total supply.
 These unbalanced problems can be handled
easily by introducing dummy sources or dummy
destinations.
 If total supply is greater than total demand, a
dummy destination (warehouse), with demand
exactly equal to the surplus, is created.
 If total demand is greater than total supply, we
introduce a dummy source (factory) with a supply
equal to the excess of demand over supply.

9-44
 Special Situations with the
Transportation Algorithm
 Unbalanced Transportation Problems

 In either case, shipping cost coefficients of zero are

assigned to each dummy location or route as no goods
will actually be shipped.

 Any units assigned to a dummy destination represent

excess capacity.

 Any units assigned to a dummy source represent unmet

demand.

9-45
 Example. Demand Less Than Supply

Initial Solution to an unbalanced Problem Where

Demand is less than supply
TO DUMMY TOTAL
FROM
A B C WAREHOUSE AVAILABLE
$5 $4 $3 0
D 250 250

$8 $4 $3 0
E 50 200 50 300

$9 $7 $5 0
F 150 150 300

WAREHOUSE
300 200 200 150 850
REQUIREMENTS

Total cost = 250($5) + 50($8) + 200($4) + 50($3) + 150($5) + 150(0) = $3,350

9-46
 Example. Demand Greater than Supply

Unbalanced Transportation Table

TO WAREHOUSE WAREHOUSE WAREHOUSE PLANT

FROM A B C SUPPLY
$6 $4 $9
PLANT W 200

$10 $5 $8
PLANT X 175

$12 $7 $6
PLANT Y 75

Totals
WAREHOUSE 450
DEMAND
250 100 150 do not
500
balance

9-47
 Example. Demand Greater than Supply

Initial Solution to an Unbalanced Problem in Which

Demand is Greater Than Supply
TO WAREHOUSE WAREHOUSE WAREHOUSE PLANT
FROM A B C SUPPLY
$6 $4 $9
PLANT W 200 200

$10 $5 $8
PLANT X 50 100 25 175

$12 $7 $6
PLANT Y 75 75

0 0 0
PLANT Y 50 50

WAREHOUSE
250 100 150 500
DEMAND

Total cost of initial solution = 200($6) + 50($10) + 100($5) + 25($8) + 75($6)

+ $50(0) = $2,850

9-48
 Degeneracy in Transportation
Problems
 Degeneracy occurs when the number of occupied
squares or routes in a transportation table
solution is less than the number of rows plus the
number of columns minus 1.

 Such a situation may arise in the initial solution or

in any subsequent solution.

 Degeneracy requires a special procedure to

correct the problem since there are not enough
occupied squares to trace a closed path for each
unused route and it would be impossible to apply
the stepping-stone method.
9-49
 Degeneracy in Transportation
Problems
 To handle degenerate problems, create an artificially
occupied cell.

 That is, place a zero (representing a fake shipment) in

one of the unused squares and then treat that square
as if it was occupied.

 The square chosen must be in such a position as to

allow all stepping-stone paths to be closed.

 There is usually a good deal of flexibility in selecting

the unused square that will receive the zero.

9-50
 3.2. Assignment Model
This type of problem determines the most efficient
assignment of people to particular tasks, etc.
Objective is typically to minimize total cost or total task
completion time.
Generally, the rows contain the objects or people we wish
to assign, and the columns comprise the tasks or things to
which we want them assigned.

The numbers in the table are the costs associated with

each particular assignment.

An assignment problem can be viewed as a transportation

problem in which the capacity from each source is 1 and
the demand at each destination is 1.
 Assignment Model Approach
 The Fix-It Shop has three rush projects to repair.
 The shop has three repair persons with different
talents and abilities.
 The owner has estimates of wage costs for each
worker for each project.
 The owner’s objective is to assign the three
project to the workers in a way that will result in
the lowest cost to the shop.
 Each project will be assigned exclusively to one
worker.

9-52
 Assignment Model Approach
Estimated Project Repair Costs for the Fix-It Shop
Assignment Problem

PROJECT

PERSON 1 2 3

Adams $11 $14 $6

Brown $8 $10 $11

Cooper $9 $12 7$

9-54
 The Hungarian Method
(Flood’s Technique)
 The Hungarian method is an efficient method of
finding the optimal solution to an assignment
problem without having to make direct comparisons
of every option.
 It operates on the principle of matrix reduction.
 By subtracting and adding appropriate numbers in the
cost table or matrix, we can reduce the problem to a
matrix of opportunity costs.
 Opportunity costs show the relative penalty
associated with assigning any person to a project as
opposed to making the best assignment.
 We want to make assignment so that the opportunity
cost for each assignment is zero.
9-55
Three Steps of the Assignment Method
1. Find the opportunity cost table by:by
(a) Subtracting the smallest number in each row
of the original cost table or matrix from every
number in that row.
(b) Then subtracting the smallest number in
each column of the table obtained in part (a)
from every number in that column.
2. Test the table resulting from step 1 to see
whether an optimal assignment can be made by
drawing the minimum number of vertical and
horizontal straight lines necessary to cover all
the zeros in the table.
 If the number of lines is less than the number of
rows or columns, proceed to step 3.
9-56
Three Steps of the Assignment Method

3. Revise the opportunity cost table by subtracting

the smallest number not covered by a line from
all numbers not covered by a straight line.
 This same number is also added to every
number lying at the intersection of any two lines.
 Return to step 2 and continue the cycle until an
optimal assignment is possible.

9-57
 The Hungarian Method
(Flood’s Technique)
 Step 1: Find the opportunity cost table.

 We can compute row opportunity costs and

column opportunity costs.

 What we need is the total opportunity cost.

 We derive this by taking the row opportunity costs

and subtract the smallest number in that column
from each number in that column.

9-58
 The Hungarian Method
(Flood’s Technique)
Cost of Each Person- Row Opportunity Cost
Project Assignment for Table for the Fix-it Shop
the Fix-it Shop Problem Step 1, Part (a)
PROJECT PROJECT
PERSON 1 2 3 PERSON 1 2 3

Adams $11 $14 $6 Adams $5 $8 $0

Brown 8 10 11 Brown 0 2 3

Cooper 9 12 7 Cooper 2 5 0

The opportunity cost of assigning Cooper to

project 2 is $12 – $7 = $5.
9-59
 The Hungarian Method
(Flood’s Technique)
Derive the total opportunity costs by taking the
costs in Table above and subtract the smallest
number in each column from each number in that
column.
Total Opportunity Cost Table for the Fix-it
Shop Step 1, Part (b)
PROJECT
PERSON 1 2 3

Adams $5 $6 $0

Brown 0 0 3

Cooper 2 3 0

9-60
 The Hungarian Method
(Flood’s Technique)
 Step 2: Test for the optimal assignment.
 We want to assign workers to projects in such
a way that the total labor costs are at a
minimum.
 We would like to have a total assigned
opportunity cost of zero.
 The test to determine if we have reached an
optimal solution is simple.
 We find the minimum number of straight lines
necessary to cover all the zeros in the table.
 If the number of lines equals the number of
rows or columns, an optimal solution has been
reached.
9-61
 The Hungarian Method
(Flood’s Technique)
Test for Optimal Solution to Fix-it Shop Problem
PROJECT
PERSON 1 2 3

Adams $5 $6 $0

Brown 0 0 3 Covering line 1

Cooper 2 3 0

Covering line 2

This requires only two lines to cover the zeros so

the solution is not optimal.
9-62
 The Hungarian Method
(Flood’s Technique)
 Step 3: Revise the opportunity-cost table.
 We subtract the smallest number not covered
by a line from all numbers not covered by a
straight line.
 The same number is added to every number
lying at the intersection of any two lines.
 We then return to step 2 to test this new table.

9-63
 The Hungarian Method
(Flood’s Technique)
Revised Opportunity Cost Table for the Fix-it Shop
Problem

PROJECT
PERSON 1 2 3

Adams $3 $4 $0

Brown 0 0 5

Cooper 0 1 0

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 The Hungarian Method
(Flood’s Technique)
Optimality Test on the Revised Fix-it Shop
Opportunity Cost Table
PROJECT
PERSON 1 2 3

Adams $3 $4 $0

Brown 0 0 5 Covering line 2

Cooper 0 1 0

Table 9.27
Covering line 1 Covering line 3

This requires three lines to cover the zeros so the

solution is optimal.
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 Making the Final Assignment
 The optimal assignment is Adams to project 3, Brown
to project 2, and Cooper to project 1.

 For larger problems one approach to making the final

assignment is to select a row or column that contains
only one zero.

 Make the assignment to that cell and rule out its row and
column.

 Follow this same approach for all the remaining cells.

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 Making the Final Assignment
Total labor costs of this assignment are:

ASSIGNMENT COST ($)

Adams to project 3 6

Brown to project 2 10

Cooper to project 1 9

Total cost 25

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Unbalanced Assignment Problems

 Often the number of people or objects to be

assigned does not equal the number of tasks or
clients or machines listed in the columns, and the
problem is unbalanced.
 When this occurs, and there are more rows than
columns, simply add a dummy column or task.
 If the number of tasks exceeds the number of
people available, we add a dummy row.
row
 Since the dummy task or person is nonexistent,
we enter zeros in its row or column as the cost or
time estimate.

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Unbalanced Assignment Problems
 Suppose the Fix-It Shop has another worker
available.
 The shop owner still has the same basic problem of
assigning workers to projects, but the problem now
needs a dummy column to balance the four
workers and three projects.

PROJECT
PERSON 1 2 3 DUMMY
Adams $11 $14 $6 $0
Brown 8 10 11 0
Cooper 9 12 7 0
Davis 10 13 8 0

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