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Diunggah oleh Sheena Pretesto

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- 4.IJBMRAPR20174
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- rsh_qam11_tif_09.doc
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- paper_3_27724_1426
- Relay Coordination
- 22 912085
- Module 1 Blp Simplex Revised Simplex
- 02.4 Chapter2 Solving Linear Programs.pdf
- Linear Programming Data Formulation
- Case1-Groupe Display Company
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- Constraint Qualification
- Ejemplo-Simplex en Poliedro 3D
- LPPSet1_04fEB2012

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LINEAR

PROGRAMMING

LEARNING OBJECTIVES

methods as special algorithms of linear programming in business

set up an initial distribution arrangement by the northwest method

handle an unbalanced supply and demand condition of transportation

problems

formulate transportation model

generate an initial feasible solution using the northwest corner rule,

greedy method and VAM method.

handle degeneracy in the transportation model

solve transportation problems using the MODI method

describe the nature of assignment problems

solve assignment problems using the Hungarian method

formulate assignment problem models

apply transportation and assignment problems in business

SPECIAL PURPOSE LINEAR

PROGRAMMING

PROBLEMS

Methods in Establishing Feasible Solution

the Optimal Feasible 1. Northwest Corner Rule

Solution 1.

2. Greedy Method Hungarian

1. Stepping Stone Method

3. VAM Method Method

2. MODI Method

Transportation problems

deal with selecting the routes from the source of

supply to the distribution outlets.

also included in selecting routes for the product

distribution network among the manufacturing

warehouses or among the regional and local

distribution outlets.

a simplified special case of the simplex method. Its name

was derived from its application to problems involving

transporting products from several sources to several

destinations.

Destination

Is a point of demand in a transportation problem.

Origin

Is the source or supply location in a transportation

problem.

Unused Squares

Are squares, which represent routes where no

quantity is shipped between a source and a

destination

Stone Squares

Are used squares in the transportation problem

Transportation Problem

algorithm, it is required that the sum of the supplies at the

sources equal the sum of the demands at the destinations. If

the total supply is greater than the total demand, a dummy

destination is added with demand equal to the excess

supply, and shipping costs from all sources are zero. Similarly,

if total supply is less than total demand, a dummy source is

added.

When solving a transportation problem by its special

purpose algorithm, unacceptable shipping routes are

given a cost of a large number.

Transportation problems

Two methods of Solving Transportation Problem

1. Stepping Stone

a. Balanced: Demand= Supply; Supply= Demand

Demand less than supply

Balanced Transportation problems

Stepping- stone Method of Transportation

This method utilizes unused square cells as a point of

destination to evaluate. This method utilizes unused

square cells as a point of destination to evaluate if the

solution can still be improved.

The objective is to look for three available cells,

usually rectangular in form, in relation to the point of

destination. The movements are vertical and

horizontal.

Here are the general steps in solving TP using stepping-stone

method:

Step 2. Develop an initial solution.

Step 3. Test the solution for improvement.

Step 4. Developed an improved solution.

final solution is reached in the case of minimizing the cost of

transportation. The decision makers may then decide.

EXAMPLE The GGP Gravel and Sand Company is contracted to supply

materials for three different locations in Partido: Lagonoy, Tigaon,

and Sagnay.

The engineer estimated the number of truckloads needed for

each location. Lagonoy needs 72 truckloads; Tigaon needs 102

truckloads; and Saganay needs 41 truckloads. GPP Gravel and

Sand Com. Has three gravel and sand plants located in the

different Barangays of San Jose: Brgy. Pugay, and Brgy. Salogon.

Sabang has 56 available truckloads; Pugay has 82 available

truckloads; and Salogon has 77 available.

The costs of transportation from the plants to the project

locations are as follows: P8 per truckload from Sabang to

Lagonoy; P16 from Sabang to Tigaon; P16 from Sabang to

Sagnay; P32 from Pugay to Lagonoy; P48 from Pugay to Tigaon;

and P48 from Salogon to Sagnay. Design a plan of distribution to

minimize the cost of transportation.

Step 1 Solution Project Location

To Supply

Lagonoy Tigaon Sagnay (Plant

(A) (B) (C) Capacity)

From

8 16 16

Sabang (1) 56

32 48 32

Pugay (2) 82

16 32 48

Salogon (3) 77

Demand(Project 215

Requirement) 72 102 41 215

Step 2

A systematic and logical procedure known as the

northwest corner rule (horizontal and vertical movements) is

used in developing an initial solution.

Is a procedure for obtaining an initial feasible solution to

a transportation problem that starts with allocating units

to the upper left- hand corner of any transportation

problem

Here are the following steps in using the

north -west corner method:

a. Start in the cell at the upper left corner, place a quantity

of goods in this cell that equals the smaller of the row total or

the column total in the transportation.

b. If the smaller number is the row total, the 1st row is

exhausted. Go to the 2nd. If the smaller number is the

column total, the 1st column is exhausted. Go to the 2nd

column.

c. If you have gone to the 2nd row, allocate enough goods to

the cell in row 2, column 1, to exhaust column 1. This will be

the difference between the total column 1and the amount in

the 1st cell. Advance to the second cell in row 2. (Similarly, if

you have gone to the 2nd column, allocate enough to the

second cell to exhaust the first row. Go to the second row.)

d. Continue this manner, utilizing the smaller of the row total

and the column total, until you reach the lower right-hand

corner. You should place numbers in a number of cells equal

to the number of columns + the number of rows 1 {C+R-1};

unless the problem is degenerated.

simpler reading of the tableau, express the source of

supply as 1, 2, and 3, and the destination as A, B, and C.

Hence, the initial solution or development tableau will look

like the one below:

A B C

8 16 16

1 56

56

32 48 32

(1)

2

82

16 66

16 32 48

77

3 36 41

72 102 41

The cells that contain a number at the lower left-hand corner are

called used cells or stone squares. Those that do not contain are the

unused cells or squares.

Step 3

The objective is to find out whether the solutionhas the least cost.

2- A 16 x 32 = 512

2- B 66 x 48 = 3,168

3- B 36 x 32 = 1,152

3- C 41 x 48 = 1,968

Cost = 7,248

There are some other ways to reduce the cost of transportation. Here

are some steps:

and vertical only) via stone square back to the original square. Note that

only closed paths exist for each unused square in a given solution.

the closed path, beginning with a plus sign at the first unused square. The

plus sign represents an addition of 1 unit and the negative sign represents a

subtraction of 1 unit. Start in either a clockwise or a counterclockwise

direction.

d. Determine the net change in cost or the improvement index.

for unused squares.

The unused squares are 1-B, 1-C, 2-C, and 3-A. From here,

compute for the improvement index

2-A 2-B 2-C

3-A 3-B 3-C

-8 +16

-8 16

1-C +16

56

56

1-B +32 -48 32

+32 -48 16

66

16 +32 -48

16 66

36 41

2-C

16 66 66

+16 -32 +32 -48

3- A 36 36 41

STEP 4

FROM TO

48 32 48 32

2-C 2-C

66 25 41

32 48 32 48

36 41 77

The new improvement tableau is:

A B C

8 16 16

1 56

56

32 48 32 (2)

2 82

16 25 41

16 32 48

3 77

77

72 102 41

Cost:

1- A 56 x 8 = 448

2- A 16 x 32 = 512

2- B 25 x 48 = 1,200

2- C 41 x 32 = 1,312

3- B 77 x 32 = 2,464

For: 1- B 16 48 + 32 8 = -8

1- C 16 32 + 32 8 = 8

3- A 16 32 + 48 32 = 0

3- C 48 32 + 48 32 = 32

If you improve further the solution, the new entry in cell 1- B is as follows:

8 16 8 16

1- B 1- B

56 31 25

32 48 32 48

16 25 41

The new improvement tableau is:

A B C

8 16 16

1 56

31 25

32 48 32 (3)

2 82

41 41

16 32 48

3 77

77

72 102 41

Cost:

1- A 31 x 8 = 248

1- B 25 x 16 = 400

2- A 41 x 32 = 1,312

2- C 41 x 32 = 1,312

3- B 77 x 32 = 2,464

Cost = 5,736

1- C 16 32 + 32 8 = 8

2- B 48 32 + 8 18 = 8

3- A 16 8 + 16 32 = -8

3- C 48 32 + 16 8 + 32 32 = 96 72 = 24

The closed path of 3- C goes in a zigzag direction because there is

no available rectangular way. The path is shown in the figure

below.

-8 16 +16

31 25

+32 48 -32

41 41

16 -32 +48

77 3- C

The process of transferring 31 to cell 3- A implies that 31 must be

subtracted from cell 3- B and added to cell 1- B. The new

improvement tableau is shown below.

A B C

8 16 16

1 56

56

32 48 32

2 41 41

82 (4)

16 32 48

3 77

31 46

72 102 41

Illustration of transfer to 3- A is shown in the figure below.

FROM TO

8 16 8 16

31 25 56

32 48 32 48

41 41

16 32 3 -A 16 32

3- A 77 31 46

Cost: 1- B 56 x 16 = 896

2- A 41 x 32 = 1,312

2- C 41 x 32 = 1,312

3- A 31 x 16 = 496

3- B 46 x 32 = 1,472

Cost = 5,488

1- A 8 16 + 32 16 = 8

1- C 16 32 + 32 16 + 32 = 16

2- B 48 32 + 16 32 = 0

3- C 48 32 + 32 16 = 32

The table of the improvement index 4 is shown on the next slide.

+8 -16 8 -16 +16

1- A 56 56 1- C

32 48 +32 48 -32

41 41 41

-16 +32 -16 +32 48

31 46 31 46

+32 48

-32 -32

+48

41

2-B 41

-16 32

41

+48

+16 -32

31 46 31 46

3-C

Decision: Transport form:

Plant 1 to Project B = 56 truckloads

Plant 2 to Project A = 41 truckloads

Plant 2 to Project c = 41 truckloads

Plant 3 to Project A = 31 truckloads

Plant 3 to Project B = 46 truckloads

Minimum Cost = P5,488.00

Summary of Transportation Tableau of GPP Gravel and Sand Company

Tableau 1 Tableau 2

A B C A B C

8 16 16 8 16 16

1 56 1 56

56 56

32 48 32 32 48 32

2 82 2 82

16 66 16 25 41

16 32 48 16 32 48

3 77 3 77

36 41 77

72 102 41 72 102 41

Tableau 3 Tableau 4 final

A B C A B C

8 16 16 8 16 16

1 56 1 56

31 25 56

32 48 32 32 48 32

2 82 2 82

41 41 41 41

16 32 48 16 32 48

3 77 3 77

77 31 46

72 102 41 72 102 41

MODIFIED

DISTRIBUTION MODEL

Inthis method, a new row is added above the tableau and a

new column is inserted to the left of tableau.

Let V and Wj represent the row and column, respectively,

where V is the ith row Wj is the jth column.

The key in using this method is to utilize the occupied cells

for each V and Wj values and then use these values to

calculate the net contribution of the vacant cells.

Example: Consider

the GPP Gravel and Sand

Company in the example earlier.

Step 1 Formulate the initial transportation tableau

A B C

1 8 16 16 56

56

2 32 48 32 82

16 66

3 16 32 48 77

36 41

72 100 41

STEP 2: DEVELOP AN INITIAL SOLUTION

or cell, then: Cj = V + Wj

a. V + W =8 W W W

b. V +W = 32 V 8 16 16

c. V + W = 48 56

V 32 48 32

d. V+W = 32

16 66

e. V + W = 48 V 16 32 48

36 41

72 100 41

Let V=0 then:

a. 0 + W = 8 then W= 8

b. V + W= 32 then V+ 8, so that V=24

c. V + W= 48 then 24 + W=48 so that W=24

d. V + W= 32 then V + 24=32 so that V=8

e. V + W=48 then 8 + W=48 so that W=40

The new tableau with the initial solution of the V row

and the Wj column is shown below.

W = 8 W= 24 W =

40

A B C

16 16

V= 0 1 8 56

56

32 48 32

V= 2 82

24

16 66

48

v=8 3 16 32 77

36 41

72 102 41

STEP 3 TEST THE SOLUTION FOR

IMPROVEMENT

Improvement index = Cj (cost of unused cells) - V - Wj

For: 1-B 16 0 24 = -8

1-C 16 0 24 =-24

2-C 32 24 -40 =-32

3-A 16 8 8 =0

32

Trace the closed path for the

unused squares having the largest

negative index.

From TO

66 25 41

+32 -48 +32 -48

36 41 77

THE NEW IMPROVED TABLEAU IS SHOWN

BELOW

W= 8 W= 24 W= 8

A B C

V= 0 1 8 16 16 56

56

V= 2 32 48 32 82

24

16 25 41

V= 8 3 16 32 48 77

77

72 102 41

Step 4: Develop an improved

solution

Improvement index= Cj - V - Wj

For a. V + W= 8 d. V + W= 32

b. V + W= 32 e. V + W= 32

c. V + W= 48

1-B 16 0 24= -8

1-C 16 0 8= 8

3-A 16 8 8= 0

3-C 48 8 8= 32

From TO

-8 +16 -8 +16

56 31 25

+32 -48 +32 -48

16 25

41

The New improved tableau is shown

below

W= 8 W= 16 W= 8

A B C

V= 0 1 8 16 16 56

31 25

V= 2 32 48 32 82

24

41 41

V= 8 3 16 32 48 77

77

72 102 41

DEVELOP ANOTHER

IMPROVEMENT INDEX

Improvement index= Cj - V - Wj of the new

cells or squares

For a. V + W= 8 d. V + W= 32

b. V + W = 16 e. V + W = 32

c. V + W =32

Let V=0

a. 0 + W= 8 then W= 8

b. 0 + W= 16 then W= 16

c. V + 8= 32, then V = 24

d. 24 + W= 32 then W=8

e. V +16 = 32, then V= 16

Improvement index

1-C 16 0 8 = 8

2-B 48 24 24 = 8

3-A 16 16 8 = -8

3-C 48 16 8 =24

From To

8 16 8 16

31 25

56

32 48

32 48

41

41

3-A 16 32

16 32

77 31 46

The New improved tableau is shown

below (4)

W= 0 W= 16 W= 0

A B C

V= 0 1 8 16 16 56

56

V= 2 32 48 32 82

32

41 41

V= 3 16 32 48 77

16

31 46

72 102 41

Cost improvement

1-B 56 x 16 = 896

2-A 41 x 32 = 1,312

2-C 41 x 32= 1,312

3-A 31 x 16 = 496

3-B 46 x 32 = 1,472

Cost 5,488

Improvement index= Cj - V - Wj

For: a. V + W = 16 d. V + W = 16

b. V + W = 32 e. V + W =32

c. V + W =32

Let V= 0

a. 0 + W =32, then W =32

b. V + 0= 32, then V = 32

c. 32 + W =32 then W =0

d. 16 + W = 16 then W = 16

e. V + 16 = 32, then V = 16

Improvement index for the unused cells

1-A 8 0 0= 8

1-C 16 0 - 0= 16

2-B 48 -32 -16 = 0

3-C 48 16 0=32

tableau 4 is the final solution.

SUMMARY FOR THE STEPS IN THE

MODI METHOD

1. For each solution, complete V + Wj , where Cj is the cost of stone square j,

and row (V) is always equal to zero.

2. Calculate the improvement indices for all unused squares using:

Improvement index = Cj (cost of unused cells) - V - Wj

3. Select the unused square with the largest negative index.

Trace the closed path for the unused squares having the largest negative

index.

5. Develop an improved solution using the same procedure outlined in the stepping

stone method.

6. Repeat step 1-5 until an optimal solution has been found.

Unbalanced Transportation Problem

a. The demand is less than the supply

= it is similar to a slack variable in the simplex method.

If the demand is greater, a dummy supply is used and place in a row

If the D is less than the S, a dummy D is introduced and used in a column

EXAMPLE 1 of UTP

A B C Supply

8 16 16

1

76

56

32 48 32

2

82 (1)

41 41

16 32 48

3

77

31 46

235

Demand 72 102 41

215

The new tableau with the dummy demand and initial distribution units is

shown below.

A B C Dummy Supply

8 16 16 0

1 76

72 4

32 48 32 0 (2)

2 82

82

16 32 48 0

3 77

16 41 20

Demand 72 102 41 20

Example 2 of UTP

Demand is greater than supply

A B C Supply

8 16 16

1 56

32 48 32

2 82

16 32 48

3 77

215

Demand 80 102 41

223

Illustration of the initial transportation distribution

A B C Supply

8 16 16

1 56

56

32 48 32

2 82

24 58

16 32 48

3 77

44 33

0 0 0

8 8

Demand 80 102 41

Degenerate Transportation Problem

used squares or cells is not equal to the number of row plus the

number of columns minus 1. It may occur in an initial solution.

requirement and a row requirement satisfied simultaneously,

breaking the stairstep pattern.

unused cells.

Degeneracy in a Initial Solution

Although it might look easier to choose unused square for the zero

stone, the general procedure in the northwest rule is to assign it to

a square in such a way that it maintains an unbroken chain of

stone squares or cells.

next slide:

A B C Supply

8 16 16

1 55

35 20

32 48 32 Unused with

2 25 degeneracy.

25 This is

16 32 48 breaking the

3 30 stairstep

pattern.

30

Demand 35 45 30

A zero entry may be assigned to cell 3- B or 2- C. New

tableau are shown next.

Degeneracy in a Subsequent Solution

that represent the smallest value on the path of improvement with

a negative sign.

The following tableau has an initial solution which is not

degenerated. Using the MODI method, the solution can be

improved by transferring some units to cell 3- B.

W1= 4 W2= 8 W3= 12 Supply

A B C

4 8 24

V1= 0 1 90

45 45

8 4 8 (1)

V2= -4 2 60

30 30

3 16 32 48 30

V3= 4

30

Demand 45 75 60

Computing for the improved cost of transportation, the following

formula is used:

For a. V1 + W1 = 4 c. V2 + W2 = 4 e. V3 + W3 = 16

b. V1 + W2 = 8 d. V2 + W3 = 8

Let V1 = 0.

From a. W1 = 4 c. V2 = 4 e. V3 = 4

b. 0 + W2 = 8 then W2 = 8 d. W3 = 8

Computing the cost of transportation of unused cells:

1- C 24 0 12 = 12

2- A 8 (-4) 4 = 8

3- A 16 4 4 = 8

3- B 32 4 8 = 20

The new tableau after the transfer from 3- C to 3- B is:

W1= 4 W2= 8 W3= 12 Supply

A B C

4 8 24

V1= 0 1 90

45 45

8 4 8

V2= -4 2 60 (1)

60

16 32 48

V3= 4 3 30

30

Demand 45 75 60

The preceding tableau is degenerated because only 4 cells are

occupied while the total number of rows and columns minus 1 is 5.

See the illustration below.

The affected cells are: After the transfer, the entries become:

4 8 4 8

30 60 60

4 16 4 16

30 30

The new improved tableau is:

W1= 4 W2= 8 W3= 12 Supply

A B C

4 8 24

V 1= 0 1 90

45 45

8 4 8

V 2= -4 2 60

0 60

16 32 48

V 3= 4 3 30

30

Demand 45 75 60

Summary for Solving an Iterative Transportation Problem Tableau

1. A transportation tableau is workable only if the total demand is

equal to the total supply and the number of occupied cells is equal

to the number of rows plus the number of columns minus one.

2. If the demand is greater than the supply, a dummy supply must

be added in a separate row. If the supply is greater than the

demand, a dummy demand is added in a separate column.

3. In case of degeneracy in the initial solution, a zero entry is inserted

in a vacant or unused cell that a stairstep chain remains.

4. In case of degeneracy in a subsequent solution, a zero difference is

retained in one of the cells where two equal entries are to be

subtracted.

METHODS IN ESTABLISHING THE

INITIAL FEASIBLE SOLUTION

2. Greedy Method

3. VAM Method

MINIMUM COST METHOD

OR GREEDY METHOD

solution to a transportation problem; it is easy to use and

provides good ( but not optimal ) solution.

MINIMUM COST METHOD OR

GREEDY METHOD

Step 1

Beginning with the lowest cost X3B, in which the cost is 3, allocate 50 units.

Cross out that column and the demand, and we change the column to 30

units.

To A B C Supply

From

1 7 5 9 150

2 10 12 10 200

3 6 3 14

50

Demand 100 30 220 400

(80)

STEP 2

Of the cells that remain, X1B has the lowest cost. Allocate 30 units in cell X1B,

the cells in column B are crossed out along with the total. The remaining

demand for the row 1 is 120 units, so that column total must be adjusted

accordingly.

To A B C Supply

From

1 7 5 9 150

30

2 10 12 10 200

3 6

50

3 14

50

Demand 100 30 220 400

(80)

STEP 3

Of the remaining cells, X1A has the lowest cost. Assigned 100 units to that cell.

Because the column 1 has been satisfied, the cells in the column must be

crossed out, and 100 units must be subtracted from the supply of row 1.

To A B C Supply

From

1 7 5 9 150

100 30

2 10 12 10 200

3 6

50

3 14

50

Demand 100 30 220 400

(80)

STEP 4

Cell X1C has the next lowest cost, so it is next in line for allocation. The

remaining supply is 20 units, and the remaining demand is 220 units.

Consequently, the quantity 20 is placed in X1c. This completes the use of

supply of row 1, and leaves a demand of 200 units for column 3.

To A B C Supply

From

1 7 5 9 150

100 30 20

2 10 12 10 200

3 6

50

3 14

50

Demand 100 30 220 400

(80) (220)

STEP 5

The last remaining cell X2c, then, receives a quantity of 200 units, cancelling

the remaining supply and demand for both its row and column.

To A B C Supply

From

1 7 5 150

100 30 20

2 10 12 9 200

200

3 6

50

3 14

50

Demand 100 30 220 400

(80)

SUMMARY OF STEPS IN MINIMUM COST

METHOD (MCM) OR GREEDY METHOD

1. Identify the cell that has the lowest unit cost. If there is a tie, select one

arbitrarily. Allocate the quantity to this cell that is equal to the lower of the

available supply for the row and the demand for the column.

2. Mark out the cell in the row or column that has been exhausted(or both, if

both have been exhausted), adjust the remaining row or column total

accordingly.

3. Identify the cell with the lowest cost from the remaining cells. Allocate a

quantity to this cell that is equal to the lower available supply of the row

and the demand for the column.

4. Repeat steps 2 and 3 until all supplies and demands have been allocated.

Vogels Approximation Method of Allocation

An algorithm that finds an initial feasible solution to a problem by

considering the penalty cost of not using the cheapest

available route.

Five steps:

1. Determine the difference between the lower two cells in all rows

and columns (including dummies if they are unbalanced).

2. Identify the row column, with the largest difference ties that may be

broken arbitrarily.

3. Allocate as much as possible to the lowest- cost cell in the row or

column with the highest difference.

4. Stop the process if all row and column requirements are met. If

not, go to the next step.

all rows and columns. Any row and column with zero supply or demand

should nit be used in calculating further differences. Then go to step 2.

optimal or near- optimal starting solution. One study found that VAM

yields an optimum solution in 80% of the sample problems tested.

A B C

Table 1

8 4 7 Difference Iteration Columns

1 20 20

74 74 7-4

3 6 9 3 3 3

2 45

10 5 30

63 6-3 63

3 10 5 2 20 3 3 3

20

85 52 52

10 25 50 85 3 3 -

83 54 72

5 1 5

Difference

Iterations 83 64 97

Rows 5 2 5

64 9- 7

- 2 2

For 3- B: For 2- C:

A B C Supply A B C Supply

8 16 16 8 16 16

1 55 1 55

35 20 35 20

32 48 32 32 48 32

2 25 2 25

25 25 0

16 32 48 16 32 48

3 30 3 30

0 30 30

Demand 35 45 30 Demand 35 45 30

THE ASSIGNMENT METHOD

method, is another special purpose of algorithm

used in linear programming

It is used if the following conditions are met: the

number of sources is equal to the number of

destinations; the amount of supply and the demand

is equal to one, and each variable is equal to zero or

one.

THREE MAIN STEPS IN

SOLVING AN ASSIGNMENT

PROBLEM

1. Determine the opportunity cost tableau

a. Subtract the lowest entry in each column of the given

cost tableau from all entries in that column.

b. Subtract the lowest entries in each row of the tableau

obtained in part (a) from all the entries in a row.

made.

The procedure is to draw straight lines (vertical and

horizontal) through the total opportunity cost tableau

in such manner as to minimize the number of lines

necessary to cover all zero squares. An optimal

assignment can be made when the number of lines

in the columns is equal to the number of rows.

If the number of lines drawn is fewer than the

number of rows an optimal assignment

cannot be made and a problem is not

solved.

3. Revise the total opportunity cost tableau.

a. Select the smallest number in the tableau

not covered by the straight line and

subtract this number from all numbers not

covered by line.

b. Add this number to the number lying at the

intersection of any two lines.

John is the division head of Jollibee in Western Europe. Three

branches were opened and he has to assign one manager to

each branch. He has shortlisted four candidates for the new

position and he has to assign them based on the minimum cost

possible. The cost of assigning a manager to each branch is

determined. The cost of assigning Claire to Oslo is $10,000, $20,000,

to Davos, and $14,000 to Dublin. The cost of assigning Timmy to

Oslo is $16,000, $11,000 to Davos, and $17,000 to Dublin. For

Jesselle, it will cost $15,000 to be assigned to Oslo, $12,000 to

Davos, and $19,000 to Dublin Assigning Quirob to Oslo costs

$13,000, $18,000 to Davos, and $21,000 to Dublin.

Which manager should be assigned to a new location? Who

should not be assigned to a new location? What is the least cost

of assignment?

THE DATA ARE SUMMARIZED IN THE TABLE

BELOW

(COST IN THOUSAND $)

Manager Location

Oslo Davos Dublin

Claire 10 20 14

Timmy 16 11 17

Jesselle 15 12 19

Quirob 13 18 21

SOLUTION

STEP 1. DETERMINE THE OPPORTUNITY

COST TABLEAU

a. Subtract the lowest entry in each column from all

entries in the same column.

Manager Location

Oslo Davos Dublin

Claire 0 9 0

Timmy 6 0 3

Jesselle 5 1 5

Quirob 3 7 7

b. Subtract the lowest entry in each row from all

entries in the same row.

Manager Location

Oslo Davos Dublin

Claire 0 9 0

Timmy 6 0 3

Jesselle 4 0 4

Quirob 0 4 4

STEP 2. THE LINES IN THE COLUMNS ARE FEWER

THAN THE LINES IN ROWS ; HENCE, IT IS NOT YET

AN OPTIMAL SOLUTION AND THE PROBLEM IS

NOT YET SOLVED.

STEP 3. REVISE THE TOTAL

OPPORTUNITY COST TABLE

a. Select the smallest number in the tableau not covered

by the straight line and subtract this number from all

numbers not covered by line.

Manager Location

Oslo Davos Dublin

Claire 0 9 0

Timmy 6 0 0

Jesselle 4 0 1

Quirob 0 4 1

Assignment:

Claire will be assigned to Dublin.

Timmy will be assigned to Davos or Dublin.

Jeselle will be assigned to Davos.

Quirob will be assigned to Oslo.

Explanation: Timmy can no longer go to Dublin since Claire

is already there. Likewise, Jeselle can no longer go to

Davos since Timmy is already there; hence, Jeselle has no

ssignment.

The minimum table is shown below.

Manager Location

$000 $000 $000

Oslo Davos Dublin

Claire x x 14

Timmy x 11 x

Jesselle x x x

Quirob 13 x x

The minimum cost is 14 + 11+13= $38,000.

HUNGARIAN METHOD

The Hungarian method solves minimization assignment

problems with m workers and m jobs.

Special considerations can include:

number of workers does not equal the number of jobs --

add dummy workers or jobs with 0 assignment costs as

needed

worker i cannot do job j -- assign cij = +M

maximization objective -- create an opportunity loss

matrix subtracting all profits for each job from the

maximum profit for that job before beginning the

Hungarian method

HUNGARIAN METHOD

Step 1: For each row, subtract the minimum number in that

row from all numbers in that row.

Step 2: For each column, subtract the minimum number in that

column from all numbers in that column.

Step 3: Draw the minimum number of lines to cover all zeroes.

If this number = m, STOP -- an assignment can be made.

Step 4: Determine the minimum uncovered number (call it d).

Subtract d from uncovered numbers.

Add d to numbers covered by two lines.

Numbers covered by one line remain the same.

Then, GO TO STEP 3.

EXAMPLE: HUNGRY OWNER

A contractor pays his subcontractors a fixed fee plus mileage for work

performed. On a given day the contractor is faced with three electrical

jobs associated with various projects. Given below are the distances

between the subcontractors and the projects.

Projects

A B C

Westside 50 36 16

Subcontractors Federated 28 30 18

Goliath 35 32 20

Universal 25 25 14

EXAMPLE: HUNGRY OWNER

Initial Tableau Setup

Since the Hungarian algorithm requires that there be the

same number of rows as columns, add a Dummy column so

that the first tableau is:

A B C Dummy

Westside 50 36 16 0

Federated 28 30 18 0

Goliath 35 32 20 0

Universal 25 25 14 0

EXAMPLE: HUNGRY OWNER

Step 1: Subtract minimum number in each row from all

numbers in that row. Since each row has a zero, we would

simply generate the same matrix above.

Step 2: Subtract the minimum number in each column from all

numbers in the column. For A it is 25, for B it is 25, for C it is 14,

for Dummy it is 0. This yields:

A B C Dummy

Westside 25 11 2 0

Federated 3 5 4 0

Goliath 10 7 6 0

Universal 0 0 0 0

EXAMPLE: HUNGRY OWNER

Step 3: Draw the minimum number of lines to cover all zeroes. Although

one can "eyeball" this minimum, use the following algorithm. If a

"remaining" row has only one zero, draw a line through the column. If a

remaining column has only one zero in it, draw a line through the row.

A B C Dummy

Westside 25 11 2 0

Federated 3 5 4 0

Goliath 10 7 6 0

Universal 0 0 0 0

EXAMPLE: HUNGRY OWNER

covered by two lines. This gives:

A B C Dummy

Westside 23 9 0 0

Federated 1 3 2 0

Goliath 8 5 4 0

Universal 0 0 0 2

EXAMPLE: HUNGRY OWNER

Step 3: Draw the minimum number of lines to cover all zeroes.

A B C Dummy

Westside 23 9 0 0

Federated 1 3 2 0

Goliath 8 5 4 0

Universal 0 0 0 2

EXAMPLE: HUNGRY OWNER

covered by two lines. This gives:

A B C Dummy

Westside 23 9 0 1

Federated 0 2 1 0

Goliath 7 4 3 0

Universal 0 0 0 3

EXAMPLE: HUNGRY OWNER

Step 4: The minimum number of lines to cover all 0's is four. Thus, there

is a minimum-cost assignment of 0's with this tableau. The optimal

assignment is:

Westside C 16

Federated A 28

Goliath (unassigned)

Universal B 25

Total Distance = 69 miles

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