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The cost to relocate 3 different machines to several locations is shown in Table 7. Using assignment technique, calculate the optimum relocation cost. (20 marks) Table 7 : Relocation Cost To New Locations Location A \$800 \$500 \$500 Location B \$1,100 \$1,600 \$1,000 Location C \$1,200 \$1,300 \$2,300 Location D \$1,000 \$800 \$1,500

Machine X Machine Y Machine Z

a) To balance the problem, we add a dummy row (machine) with zero location cost to each location.

Location D \$1,000 \$800 \$1,500 0

b) Subtract smallest number in each row and cover zeroes (column subtraction will give the same numbers and there fore is not necessary)

Location Machine Machine X Machine Y Machine X Dummy

Location A 0 0 0 0

Location D 200 300 1,000 0

c) Subtract smallest uncovered number (200), add it to each square where two lines intersect, and cover all zeroes.

Location Machine Machine X Machine Y Machine Z Dummy

Location A 0 0 0 200

Location D 0 100 800 0

d) Subtract smallest uncovered number (100), add it to each squares where two lines intersect, and cover all zeroes.

Location Machine Machine X Machine Y Machine Z Dummy

Location A 0 0 0 300

Location D 0 100 800 100

e) Subtract smallest uncovered number (100), add it to each squares where two lines intersect, and cover all zeroes.

Location D 0 0 700 100

f) Since it takes four lines to cover all zeroes, and optimal assignment can be made at zero squares. We assign

(1) Dummy (no one) to Location C (2) Machine X to Location B (3) Machine Y to Location D (4) Machine Z to Location A