1. Branch and bound is an algorithm that uses a state space tree to solve optimization problems like the knapsack problem and traveling salesman problem. It works by recursively dividing the solution space and minimizing costs at each step.
2. The document then provides an example of using branch and bound to solve a job assignment problem with 4 jobs and 4 people. It calculates lower bounds at each step of the algorithm and prunes branches that cannot lead to an optimal solution.
3. After exploring the solution space, the algorithm arrives at the optimal assignment of Person A to Job 2, Person B to Job 1, Person C to Job 3, and Person D to Job 4, with a minimum total cost of 21.