GROUP 3

ASSIGNMENT PROBLEM
Problem:
A Financing Corporation headquartered in Makati wants to assign three personnel, Mel,
Ben, and Fred to their regional offices. The following table shows the cost of relocation for each
of these three personnel to the company’s three regional offices.

Personnel Pampanga Bataan Bulacan

Mel ₱ 21 000 ₱ 22 000 ₱18 000
Ben 25 000 23 000 15 000
Fred 20 000 33 000 15 000

Find the assignment of personnel to the regional offices that will give the least cost to the
company.
Let A = Mel X = Pampanga
B = Ben Y = Bataan
C = Fred Z = Bulacan

Table 1:
COST INFORMATION
Location
X Y Z
Personnel
A ₱ 21 000 ₱ 22 000 18 000
B 25 000 23 000 15 000
C 20 000 33 000 15 000

The smallest cost per row:

A B C
18,000 15,000 15,000

Table 2:
Personnel Opportunity Table
Location
X Y Z
Personnel
A 3 000 4 000 0
B 10 000 8 000 0
C 5 000 18 000 0

The smallest cost per column:

X Y Z
3,000 4,000 0
 Table 3:
Location Opportunity Table
Location
X Y Z
Personnel
A 0 0 0 Line 2
B 7 000 4 000 0
C 2 000 14 000 0
Line 1
The smallest cost = 2 000

X Y Z
0 0 0 + 2 000 = 2 000
7 000 – 2 000 =5000 4 000 – 2000 = 2000 0
2 000 – 2000 = 0 14 000 – 2000 = 12 000 0

Number of Row/Column = No. of Assignments

3≠2

Table 4:
Optimal Solution
Location
X Y Z
Personnel
A 0 0 2 000 Line 3
B 5 000 2 000 0
C 0 12 000 0
Line 2 Line 1

Number of Row/Column = No. of Assignments

3=3
Optimal Solution

Decision:
Assigned Cost
A=Y Mel to Bataan ₱ 22 000
B=Z Ben to Bulacan 15 000
C=X Fred to Pampanga 20 000
₱ 57 000

In order to minimize cost, Mel should be assigned to Bataan, Ben to Bulacan, and
Fred to Pampanga. In total, this assignment would cost ₱ 57 000.