CHAPTER 3

TRANSPORTATION AND

ASSIGNMENT MODEL
 3.1 TRANSPORTATION MODEL
3.1.1 INITIAL FEASIBLE SOLUTION
• The transportation model deals with a special
class of linear programming problem in which
the objective is to transport a homogeneous
commodity from various origins or factories
to different destinations or markets at a total
minimum cost.
• The purpose of using an LP model for
transportation problems is to minimize
transportation costs, taking into account the
origin as a supply, the destination as a demands,
and the transportation costs.
• The transportation method is similar in certain
respects to the simplex technique because both
involve an initial feasible solution that is
evaluated to determine if it can be improved.
 FORMULATING THE MODEL
• A transportation problem typically involves a set of
sending locations, which are referred to as origins,
and a set of receiving locations, which are referred
to as destinations.
• In order to develop a model of a transportation
problem, it is necessary to have the following
information:
• Supply quantity (capacity) of each origin.
• Demand quantity of each destination.
• Unit transportation cost for each origin-
destination route.
 Assumptions
• The transportation algorithm requires the
assumption that:
• All goods be homogeneous, so that any origin is
capable of supplying any destination,
• Transportation costs are a direct linear function
of the quantity shipped over any route, and
• The total quantity available is equal to the total
demand.
Example
•Let’s consider an example. Elemo Kiltu sand and
gravel pit has contracted to provide topsoil for
three residential housing developments. Topsoil
can be supplied from three different “farms” as
follows:
Farm Weekly capacity (cubic yards)
A 100
B 200
C 200
• Demand for the topsoil generated by the
construction projects is:
Project Weekly demand(cubic yards)
1. 50
2. 150
3. 300
• The manager of the sand and gravel pit has
estimated the cost per cubic yard to ship
over each of the possible routes:
Cost per cubic yard (in ETB)

From to Project I to Project II to Project

III
Farm A 4 2 8
Farm B 5 1 9
Farm C 7 6 3
 To: Project #1 Project #2 Project #3 Supply
 
From:
      4     2     8  
Farm A                   100
                 
      5     1     9  
Farm B                   200
                 
      7     6     3  
Farm C                   200
                 
 DD 50 150 300    
• Note: It is possible to write this transportation
problem in the form of LPM.
• Nine ( 3x3) decision variables are there and the
objective function is minimization.
• LPM for this problem is:
Z-min: 4x11 + 2x12 +8x13 + 5x21 + x22 + 9x23 + 7x31 +
6x32 + 3x33
 
• Subject to:
x11 + x12 +x13 <100
x21 + x22 + x23 <200 Capacity/ Source constraint
x31 + x32 + x33 <200
 
x11 + x21 + x31 < 50
x12 + x22 +x32 <150 DD /Destination constraint
x13 + x23 + x33 <300
• This can be rewritten as:
Z-min= 4x11 + 2x12 +8x13 + 5x21 + x22 + 9x23 + 7x31 + 6x32
+ 3x33
Subject to:
x11+ x12 + x13 <100
x21 + x22 + x23 < 200
x31 + x32 + x33 < 200
x11 + x21 + x31 < 50
x12 + x22 +x32 < 150
x13 + x23 + x33 < 300
x11 , x12, x13 ,x21, x 22 , x23 , x31, x32 , x33 > 0
• The above problem has got the following
properties:
1.It has an objective function.
2.It has structural constraints.
3.It has a non-negativity constraint.
4.The r/ship b/n variables & constraints are linear.
• We know very well that these are the properties
of a LPP.
• Hence the transportation model is also a LPP, but
a special type.
 3.1.1 INITIAL FEASIBLE SOLUTION
• Since the objectives is to minimize cost
considering alternative of routes transport of
cargo to a given destination, there will be
many methods applicable.
• Each method may result different total cost.
• Thus, the first table of allocation and selection
of route via one the methods is not optimal.
• It is referred to as initial feasible solution.
 Steps to Finding an Initial Feasible Solution
Step 1: Balancing the given problem. Balancing
means check whether sum of availability constraints
must be equals to sum of requirement constraints.
That is Σbi = Σd j .
•The number of nonzero (occupied) cells should
equal one less than the sum of the number of rows
and the number of columns in a transportation table
i.e. [(n+m) - 1].
•In the case of a table with 3 rows and 3 columns,
the number of occupied cells should be (3 + 3) -1 = 5
in order to be able to use the transportation
algorithm.
• Sometimes, fewer occupied or completed cells
appear in a solution.
• When that happens, the solution is referred to
as a degenerated solution; such a solution
requires modification in order to be able to
determine if it is optimal.
• A number of different approaches can be used
to find an initial feasible solution.
• Three of these are described here:
1.The northwest-corner method.
2.An intuitive approach/Least cost method
3.Vogel’s / Penalty Method
 A. The North-west Corner Method
• The northwest corner method is a systematic
approach for developing an initial feasible
solution.
• Its chief advantages are that it is simple to use
and easy to understand.
• Its chief drawback is that it does not take
transportation costs into account.
• Consequently, such a solution may require much
additional effort to obtain the optimal solution.
• The northwest corner method gets its name
because the starting point for the allocation
process is the upper left-hand (Northwest)
corner of the transportation table.
• The following set of principles guides the
allocation:
– Begin with the upper left-hand cell, and allocate as
many units as possible to that cell. This will be the
smaller of the row supply and the column demand.
Adjust the row and column quantities to reflect the
allocation.
– Remain in a row or column until its supply or demand
is completely exhausted or satisfied, allocating the
maximum number of units to each cell in turn, until all
supply has been allocated (and all demand has been
satisfied because we assume total supply and demand
are equal).
The cells of the transportation table indicates
transportation route.
Initial Feasible Solution for Elemo Kiltu using
Northwest-corner method.
To:        
  Project #1 Project #2 Project #3 Supply
From:
      4     2     8  
Farm A 50 50   100

(first) (second)
      5     1     9  
Farm B   100 100 200
(third) (fourth)
      7     6     3  
Farm C     200 200
(last)
Demand 50 150 300 500
• The total cost is found by multiplying the
quantities in “completed” (i.e. nonempty) cells by
the cell’s unit cost and, then, summing those
amounts.
• Thus: Total cost = 50(4) + 50(2) + 100(1) + 100(9) +
200(3) = 1900 ETB
• As noted earlier, the main drawback of the
northwest-corner method is that it does not
consider cell (route) costs in making the allocation.
• Consequently, if this allocation is optimal, that can
be attributed to chance rather than the method
used.
 B. The Intuitive Approach
• This approach, also known as the minimum-cost
method, uses lowest cell cost as the basis for
selecting routes. The procedure is as follows:
i. Identify the cell that has the lowest unit cost. If
there is a tie, select one arbitrarily.
ii. Allocate a quantity to this cell that is equal to the
lower of the available supply for the row and the
demand for the column.
iii.Cross out the cells in the row or column that has
been exhausted (or both, if both have been
exhausted), and adjust the remaining row or
column total accordingly.
iv. Identify the cell with the lowest cost from
the remaining cells. Allocate a quantity to
this cell that is equal to the lower of the
available supply of the row and the demand
for the column.
v. Repeat steps (ii) and (iii) until all supply and
demand have been exhausted.
The cells of the transportation table indicates transportation route.

To: Project #1 Project #2 Project #3 Supply

From:
      4     2     8 100  

Farm A 50   50  
      5     1     9 200  

Farm B   150 50  
      7     6     3 200  

Farm C     200  
Demand 50 150 300 500
• We can easily verify that this is a feasible solution
by checking to see that the row and column totals
of the assigned cell quantities equal the supply
and demand totals for the rows and columns.
• Now let us compute the total cost of this solution
and compare it to that of the northwest corner
solution.
Total cost = 50(4) + 50(8) + 150(1) + 50(9) + 200(3) =
1,800ETB
• Compared to the plan generated using the
Northwest-corner method, this one has a total
cost that is 100 ETB less.
 C. Vogel’s Approximation Method (VAM)
• In this method, we use concept of opportunity
cost - the penalty for not taking correct decision.
• To find the row opportunity cost in the given matrix
deduct the smallest element in the row from the next
highest element.
• Similarly to calculate the column opportunity cost, deduct
smallest element in the column from the next highest
element.
• Write row opportunity costs of each row just by the side
of availability constraint and similarly write the column
opportunity cost of each column just below the
requirement constraints. These are known as penalty
column and penalty row.
• The rationale in deducting the smallest element
form the next highest element is:
• Let us say the smallest element is 3 and the next
highest element is 6. If we transport one unit
through the cell having cost 3birr, the cost of
transportation per unit will be birr3.
• Instead we transport through the cell having cost
of 6birr, then the cost of transportation will be
6birr per unit. That is for not taking correct
decision; we are spending 3birr more
• (6birr – birr3 = 3birr. This is the penalty for not
taking correct decision and hence the
• opportunity cost.
• This is the lowest opportunity cost in that
particular row or column as we are deducting the
smallest element form the next highest element.
• Note, if the smallest element is three and the row
or column having one more three, then we have
to take next highest element as three and not any
other element.
• Then the opportunity cost will be zero.
• Steps in VAM
• Construct the cost, requirement, and availability
matrix i.e. cost matrix with column and row
information.
• Compute a penalty for each row and column in the
transportation table. The penalty is merely the
difference between the smallest cost and the next
smallest cost element in that particular row or
column.
• Identify the row and column with the largest
penalty. In this identified row (column), choose the
cell which has the smallest cost and allocate the
maximum possible quantity to this cell.
• Delete the row (column) in which capacity
(demand) is exhausted. When there is a tie for
penalty, select one arbitrarily. After allocation,
cross that row or column and disregard it from
further consideration.
• Repeat steps 1 to 3 for the reduced table until the
entire capabilities are used to fill the requirement
at different warehouses.
• From step 4 we will get initial feasible solution.
 To: Project #1 Project #2 Project #3 Supply
From:
 
    4     2 8
4

  50       50   100
                 
4

Farm A

5
    5     1   9
5
Farm B 50
200
          150    
               
• Now for initial feasible solution find the total cost.
i.e. 50*4 + 50*8 + 150*1 + 50*9 + 200*3= 1,800 ETB.
This equal to the total cost of the problem allocated
using intuitive method.
However, still there are empty cells/ routes not
utilized, which may result in different total cost if
used.
Thus, a manager should test each empty cells or
unutilized routes to check alternative or even less
costly routes.
 3.1.2 Optimality Test
• Once, we get the basic feasible solution for a
transportation problem, the next duty is to test
whether the solution got is an optimal one or not?
• The test for optimality for a feasible solution
involves a cost evaluation of empty cells (i.e.,
routes to which no units have been allocated) to
see if an improved solution is possible.
• We shall consider two methods for cell evaluation:
1.The Stepping-stone method
2.The MODI method
(a) Stepping stone method of optimality test
• Rules for tracing Stepping-stone paths:
• All unoccupied cells must be evaluated. Evaluate
cells one at a time.
• Except for the cell being evaluated, only add or
subtract in occupied cells. (It is permissible to skip
over unoccupied cells to find an occupied cell from
which the path can continue.)
• A path will consist of only horizontal and vertical
moves, starting and ending with the empty cell
that is being evaluated.
• Alter + and – signs, beginning with a + sign in the
cell being evaluated.
•  Note that it is not necessary to actually alter
the quantities in the various cells to reflect the
one-unit change, the + and – signs suffice.
• To give an optimality test to the solution
obtained, we have to find the opportunity cost of
empty cells. As the transportation problem
involves decision making under certainty, we
know that an optimal solution must not incur any
positive opportunity cost.
• Thus, we have to determine whether any positive
• opportunity cost is associated with a given
progarmme, i.e., for empty cells.
• Once the opportunity cost of all empty cells are
negative, the solution is said to be optimal.
• In case any one cell has got positive opportunity
cost, then the solution is to be modified.
• The Stepping stone method is used for finding the
opportunity costs of empty cells.
• Every empty cell is to be evaluated for its
opportunity cost.
• To do this the methodology is:
1. Put a small ‘+’ mark in the empty cell.
2. Starting from that cell draw a loop moving
horizontally and vertically from loaded cell to loaded
cell. Remember, there should not be any diagonal
movement. We have to take turn only at loaded
cells and move to vertically downward or upward or
horizontally to reach another loaded cell.
In between, if we have a loaded cell, where we
cannot take a turn, ignore that and proceed to next
loaded cell in that row or column.
3. After completing the loop, mark minus (–) and
plus (+) signs alternatively.
4. Identify the lowest load in the cells marked with
negative sign.
5. This number is to be added to the cells where
plus sign is marked and subtract from the load of
the cell where negative sign is marked.
6. Do not alter the loaded cells, which are not in
the loop.
7. The process of adding and subtracting at each
turn or corner is necessary to see that rim
requirements are satisfied.
8. Construct a table of empty cells and work out
the cost change for a shift of load from loaded cell
to loaded cell.
9. If the cost change is positive, it means that if we
include the evaluated cell in the programme, the
cost will increase. If the cost change is negative,
the total cost will decrease, by including the
evaluated cell in the programme.
10. The negative of cost change is the opportunity
cost. Hence, in the optimal solution of
transportation problem empty cells should not have
positive opportunity cost.
11. Once all the empty cells have negative
opportunity cost, the solution is said to be optimal.
 Example: take the following given to develop
initial feasible solution and test optimality of the
routes.
A B C D SUPPLY

1 100
4 7 7 1

12 3 8 9 200
2

FACTORY
8 10 16 5 150
3

DD 80 90 120 160 450

 Initial Feasible solution of the above case:
A B C D SUPPLY

1 4 7 7 100 1 100

12 90 3 110 8 9 200

FACTORY 80 8 10 10 16 60 5 150

DD 80 90 120 160 450

Total Transportation cost of the initial feasible solution is=

100*1 + 90*3 + 110*8 + 80*8 + 10*16 + 60*5 = 2,350

Test the optimality by evaluating empty cells or the
un utilized routes using Stepping Stone Method.
A B C D SUPPLY
1 100 100
4 7 7 1
Start from
Cell 1-A
12 90 3 110 8 9 200
2

FACTORY
80 8 10 10 16 60 5 150
3

DD 80 90 120 160 450

Cell 1-A
+ -
+4 -1
+5 -8
0
+9 -9
• When cell evaluation results in ‘0’, shifting
units around that path would have no
impact whatsoever on transportation cost.
• Thus, use of cell 1-A would be an equivalent
cost alternative.
• Management may prefer to use it for other
reasons otherwise the manager would stay
with the original solution.
• However, knowledge of the such
information of alternatives adds certain
degree of flexibility to decision making.
 A B C D SUPPLY
1 100 100
Now, 4 7 7 1
evaluate
Cell 2-A
12 90 3 110 8 98 200
2

FACTORY
80 8 10 10 16 60 5 150
3

DD 80 90 120 160 450

Cell 2-A Meaning, for every

+ - unit shipped from
+12 -8 Factor 2 to
+16 -8 customer A via
+12 cell/route 2-A cost
+28 -16
will rise by 12 ETB.
 A B C D SUPPLY
1 100 100
Now, 4 7 7 1
evaluate
Cell 3-B
12 90 3 110 8 98 200
2

FACTORY
80 8 10 10 16 60 5 150
3

DD 80 90 120 160 450

Cell 3-B Meaning, for every

+ - unit shipped from
+10 -3 Factor 3 to customer
+8 -16 b via cell/route 3-B
+18 -19 -1 cost will decrease by
12 ETB.
 A B C D SUPPLY
1 100 100
Now, 4 7 7 1
evaluate
Cell 2-D
12 90 3 110 8 9 200
2 8

FACTORY
80 8 10 10 16 60 5 150
3

DD 80 90 120 160 450

Cell 2-D Meaning, for every

+ - unit shipped from
+8 -8 Factor 2 to customer
+16 -5 D via cell/route 2-D
+24 -13 -11 cost will increase by
11 ETB.
 A B C D SUPPLY
1 100 100
Now, 4 7 7 1
evaluate
Cell 1-B + -
12 90 3 110 8 98 200
2
- +
FACTORY
80 8 10 10 16 60 5 150
3
- +
DD 80 90 120 160 450

Cell 1-B Meaning, for every

+ - unit shipped from
+7 -1
+5 -16 Factor 1 to customer
+8 -3 B via cell/route 1-B
+20 -20 0 cost will increase by
0 ETB.
 A B C D SUPPLY
1 100 100
Now, 4 7 7 1
evaluate
Cell 1-C + -
12 90 3 110 8 9 200
2

FACTORY
80 8 10 60 5 150
-
10 16
3 +
DD 80 90 120 160 450

Cell 1-C Meaning, for every

+ - unit shipped from
+7 -1 Factor 1 to customer
+5 -16 C via cell/route 1-C
+10 -17 -5 cost will Decrease by
5 ETB.
 Developing the Improved Solution
• When developing an improved solution we should
focus on the largest negative number.
• The above cell/route evaluations can be
compared as follows:
Cell/ 1-A 2-A 3-B 2-D 1-B 1-C
Routes
Cost 0 +12 -1 +11 0 -5
• According to this evaluation, cell/Route 1-C is the
best alternative that can improve our solution to
optimality.
The Improved Solution is made by allocating 10 units to cell 1-C
since it is the smallest amount carrying negative (-) sign in the
evaluation process of the cell/route.
  A B C D SUPPLY
100
1     10 90

+10 -10

  200
2     110   
FACTORY  90
80 70 150
    -10 +10
3
 

Total Transportation cost of the optimal solution is=

90*1 + 90*3 + 110*8 + 80*8 + 10*7 + 70*5 = 2,300
 (b) Modified Distribution (MODI) Method of
Optimality test
• In stepping stone method, we have seen that to
get the opportunity cost of empty cells, for every
• cell we have to write a loop and evaluate the cell,
which is a laborious process.
• In MODI method, we can get the opportunity
costs of empty cells without writing the loop.
• After getting the opportunity cost of all the cells,
we have to select the cell with highest positive
opportunity cost for including it in the modified
solution.
 Steps in MODI method:
• Make an initial allocation using the intuitive
method.
• Obtain an index number for each row and column.
Do this using only completed cells. Note that there
will always be at least one completed cell in each
row and in each column.
• Begin by assigning a zero (0) to the first row.
• Determine the column index for any completed
cells in row 1 using the relationship: column index
= cell cost-row index.
• Each new column value will permit the
calculation of at least one new row value and
vise versa. Continue until all rows and
columns have index numbers, using only
completed cells.
• Obtain cell evaluations for empty cells using
the relationship: cell evaluation= cell cost-
(row index + column index)
 Row Index Column Index
4 7 12 1
A B C D SUPPLY
1
0 4 7 7 100 1 100

90 110 200
-4 2
12 3 8 9

FACTORY
80 10 60 150
4 3
8 10 16 5

DD 80 90 120 160 450

Cell Cost (CC) = Ci + Ri only for completed cells.

Where: Ci—column index and Ri – row index.
Hence, for column D index would be CC= Ci+Ri: 1= Ci+0):
1-0 =Ci: = 1, next for 3-D, 5= Ci+1, Ci= 5-1= 4.
 3.1.3 Special Cases
• There are a number of special issues in relation to
the transportation model. They are:
1) Determining if there are alternate optimal solutions.
2) Defining and handling degeneracy (too few occupied
cells to permit evaluation of a solution).
3) Avoiding unacceptable or prohibited route assignments.
4) Dealing with problems in which supply and demand are
not equal.
5) Solving maximization problems.
A) Alternate Optimal Solutions
•Sometimes, transportation problems have
multiple optimal solutions.
•In such instances, it can be useful for a
manager to be aware of alternate solutions,
because this gives the manager an option of
bringing non-quantitative considerations into
the decision.
•In the case of the transportation problem, the
existence of an alternate solution is signaled by
an empty cell’s evaluation equal to zero.
B) Degeneracy
•A solution is degenerate if the number of occupied
cells is less than the number of rows plus the number
of columns minus one.
•i.e., completed sells < R+C-1.
•It implies there are too few occupied cells to enable
all the empty cells to be evaluated.
•In the case of the stepping-stone method, this means
that there will be at least one empty cell for which an
evaluation path cannot be constructed. For the MODI
method, it means that it will be impossible to
determine all of the row and column index numbers.
• Obviously, modification has to made to treat
some of the empty cells as occupied cells.
• This is accomplished by placing a delta () in one
of the empty cells.
• The delta represents an extremely small quantity
(e.g., 0.001 unit); it is so small that SS & DD
quantities in the row or column, and so small that
total cost will not change.
• The purpose of the delta is to enable evaluation
of the remaining empty cells.
 A B C SUPPLY

1 40 3 2 5 40

8 50 1 10 4 60

FACTORY 7 7 20 6 20

3 
DD 40 50 30 120

Here, R+C-1 = 3+3-1 = 5, but the actually complete cells are only 4. In
this case there exists degeneracy.
Hence, one of the empty cell should be assigned with delta sign 
to assume that the cell is completed and proceed to the evaluation
of empty cells in Stepping –stone and MODI method, since the R+C-1
is 5.
C) Unacceptable Routes
•In some cases, an origin-destination combination
may be unacceptable.
•This may be due to weather factors, equipment
breakdowns, labor problems, or skill requirements
that either prohibit, or make routes undesirable.
• Suppose that in the above problem route 2-C was
suddenly unavailable because of recent flooding. In
order to prevent that route from appearing in the
final solution (as it originally did), the manager could
assign a unit cost to that cell that was large enough
to make that route uneconomical and, hence,
prohibit its occurrence.
• One rule of thumb would be to assign a cost that
is 10 times the largest cost in the table (or a very
big +M).
• Then, this revised problem could be solved using
either of the methods we have discussed earlier.
• Note that the prohibited route may appear in a
non-optimal solution, but it will be eliminated by
the time the optimal solution is reached.
• Dear learner, would you find the optimal solution
if route 2-C is not available? How do you
compare the cost with the original cost?
D) Unequal Supply and Demand
•Up to this point, examples have involved cases in
which supply and demand were equal.
•But in reality there are situations in which the two
are not equal.
•When such a situation is encountered, it is
necessary to modify the original problem so that
supply and demand are equal.
•This is accomplished by adding either a dummy
column or a dummy row; a dummy row is added if
supply is less than demand and a dummy column is
added if demand is less than supply.
• The dummy is assigned unit costs of zero for each
cell, and it is given a supply (if a row) or a
demand (if a column) equal to the difference
between supply and demand.
• Quantities in dummy routes in the optimal
solution are not shipped.
• Rather, they serve to indicate which supplier will
hold the excess supply, and how much, or which
destination will not receive its total demand, and
how much it will be short.
  A B SUPPLY
100
1
100
FACTORY

 
2

DD 80 90 200
170
  A B Dummy SUPPLY
0 100
1  
0 100
2
FACTORY

DD 80 90 30 200
2000
E) Maximization:
•Some transportation type problems concern profits or
revenues rather than costs.
•Hence, the objective is maximize not minimize.
•Such problems can be handled by adding one additional
step at the start:
•Identify cell with largest profit & subtract all the other
cell profits from that value.
•Then replace the cell profits with the resulting values.
•These values reflect the opportunity costs between larger
& smaller profits
•Replace the original unit profits with these opportunity
cost solution.
• This will be identical to maximizing the total profit
• For example, suppose in the Harley problem, the
cell values had been unit profits instead of unit
costs.
• Cell 2-C had the largest dollar value: $9. Hence,
each cell’s dollar amount would be subtracted
from 9.
• For cell 1-A, the resulting opportunity cost would
have been 9-4 = 5 and so on.
• Cell 2-C would have an opportunity cost of 0
making it the most desirable route.
• The remaining steps are same as minimizations.
   A B C SUPPLY
1 4 2 8 100
5  7 1
 

2 5 1 9 200
FACTORY 4  8 0
3

7 6 3 150
2 3 6
 

Dear
DD learner,
50 would you
100 complete
300 the 450
above case following the steps of the
minimization?
 3.2 Assignment Model
• There are many situations where assignment of
people or machines and so on, may be called for.
• Assignment of workers to machines, clerks to
various counters, salesmen to different sales
areas, service crews to different districts, are
typical examples of these.
• The assignment is a problem because people
posses varying abilities for performing different
jobs and, therefore, the costs of performing the
jobs by different people are different.
• Obviously, if all persons could do a job in the
same time or at the same cost then it would not
matter who of them is assigned the job.
• Thus, in assignment problem, the question is how
should the assignment be made in order that the
total cost involved is minimized (or the total
value is maximized when pay-offs are given in
terms of, say, profits).
• A typical assignment problem follows:
• Example
A production supervisor is considering how he
should assign the four jobs that are performed, to
four of the workers working under him. He want
to assign the jobs to the workers such that the
aggregate time to perform the job in the least.
Based on the previous experience, he has the
information on the time taken by the four workers
in performing these jobs, as given in below
   Job
Worker
A B C D

1 45 40 51 67

2 57 42 63 55

3 49 52 48 64

4 41 45 60 55
• Example
A computer centre has got four Expert
Programmers. Centre needs four application
programmers to be developed. The head of
dept., estimate the computer required by the
respective experts to develop the application
programs as follows. Make appropriate selection
of experts.
  
Program A B C D
Expert
1 120 100 80 90
2 80 90 110 70
3 110 140 120 100
4 90 90 80 90
Definition:
•The Assignment Problem (A.P) is a special case of
Transportation Problem (T.P) under

the condition that the number of origins is

equal to the number of destinations i.e. m=n
•Hence assignment is made on the basis of 1:1
•Number of jobs equal to number of machines or
persons.
•Each man or machine is loaded with one and only one
job.
•Each man or machine is independently capable of
handling any of the jobs being presented.
• Loading criteria must be clearly specified such as “
minimizing operating time or “ maximizing profit”,
or “ minimizing production cost” or minimizing
production cycle time e.t.c
• The Assignment Problem (A.P.) is a special case of
Transportation Problem (T.P.) in which the
number of sources and destinations are the same,
and the objective is to assign the given job (task)
to most appropriate machine (person) so as to
optimize the objective like minimizing cost.
• Cost Vector (Cij): Cost vector (Cij) is the cost of
assigning ith job (Task) to jth machine (person),
• Assignment Vector (Xij) is defined as follows: Xij =
0; If ith job (Task) is not assigned by jth machine
(person) or Xij = 1; If ith job (Task) is assigned to jth
machine (person).
• Cost Matrix (Cij): Assignment problem is stated in
the form of (n*n) matrix. This is called cost
matrix. This is illustrated as given below.
• Cij = cost of assigning ith job to jth machine
• (Symbols j = Job (Task) M = Machine (person)
. M 1 2 3 … k … n

1 C11 C12 C13 … C1k … C1n

2 C21 C22 C23 … C2k … C2n

3 C31 C32 C33 … C3k … C3k

… … … … … … … …

K Ck1 Ck2 Ck3 … Ckk … Ckn

… … … … … … … …

N Cn1 Cn2 Cn3 … Cnk … Cnn

• Effective Matrix: A cost Matrix in A.P. is called an
“Effectiveness Matrix” when there is at least one
zero in each row and column. Following is an
example of Effectiveness Matrix.
  1 2 3 4
1 0 1 3 4
2 5 0 6 0
3 7 8 0 9
4 0 4 3 8
• Remark:
1.It may be noted that assignment problem is a
variation of transportation problem with two
characteristics (i) the cost matrix is square matrix,
and (ii) the optimum solution for the problem
would always be such that there would be only
one assignment in a given row or column of the
cost matrix.
2.In assignment problem if a constant is added or
subtracted from every element of any row or
column in the given cost matrix then an
assignment that minimizes the total cost in one
matrix also minimizes the total cost in the other.
HUNGARIAN ASSIGNEMNT METHOD (HAM)
•A method, designed specially to handle the
assignment problems in an efficient way, called the
Hungarian Assignment Method, is available, which is
based on the concept of opportunity cost.
•For a typical balanced assignment problem
involving a certain number of persons and an equal
number of jobs, and with an objective function of
the minimization type, the method is applied as
listed in the following steps:
• Example: Solve the assignment problem given in
Illustrative Example 1 for optimal solution using
HAM. The information is reproduced in the
following table. Time Taken (in minutes) by 4
workers
  Job
Worker A B C D

1 45 40 51 67
2 57 42 63 55
3 49 52 48 64
4 41 45 60 55
• The solution to this problem is given here in a
step-wise manner.
• Step 1: The minimum value of each row is
subtracted from all elements in the row. It is
shown in the reduced cost table, also called
opportunity cost table, given as follows.
• Reduced Cost Table 1
  Job
Worker A B C D

1 5 0 11 27
2 15 0 21 13
3 1 4 0 16
4 0 4 19 14
• Step 2: For each column of this table, the
minimum value is subtracted from all the other
values. Obviously, the columns that contain a zero
would remain unaffected by this operation. Here
only the fourth column values would change. The
table below shows this.
• Reduced Cost Table 2
  Job
Worker A B C D

1 5 0 11 14
2 15 0 21 0
3 1 4 0 3
• Step 3: Draw the minimum number of lines
covering all zeros. As a general rule, we should first
cover those rows/columns which contain larger
number of zeros. The above table is reproduced in
the next table and the lines are drawn. Reduced
Cost Table3
  Job
Worker A B C D

1 5 0 11 14
2 15 0 21 0
3 1 4 0 3
4 0 4 19 1
• Step 4: Since the number of lines drawn is equal to 4(=n),
the optimal solution is obtained. The assignments are
made after scanning the rows and columns for unit zeros.
Assignments made are shown with squares, as shown in
the following table. Assignment of Jobs
  Job
Worker A B C D

1 5 0 11 14

2 15 0 X 21 0

3 1 4 0 3

4 0 4 19 1
• Assignments are made in the following order.
Rows 1, 3, and 4 contain only one zero each. So
assign 1-B, 3-C and 4-A. Since worker 1 has been
assigned job B, only worker 2 and job D are left
for assignment. The final pattern of assignments
is 1-B, 2-D, 3-C, and 4-A, involving a total time of
40+55+48+41=184 minutes. This is the optimal
solution to the problem-the same as obtained by
enumeration and transportation methods.
 • Example
Using the following cost matrix, determine (a)
optimal assignment, and (b) the cost of
assignments. Given a Cost Table below:

  Job
Machinist 1 2 3 4 5

A 10 3 3 2 8
B 9 7 8 2 7
C 7 5 6 2 4
D 3 5 8 2 4
E 9 10 9 6 10
THE
END