The document discusses the Assignment Method, which allocates organizational resources to tasks in order to optimize revenues by reducing costs and improving efficiency. It describes using the Hungarian Method and a cost table to assign three repair projects to three repair persons with different wage costs, with the goal of minimizing total costs. The document provides examples of balanced and unbalanced assignment problems and their solutions.

1. The Assignment Method
Prepared by: Ma. Eda Dominique O. Equila

2. The Assignment Method
Is a way of allocating organizational resources to a certain
task. The effectiveness of assignment strategy will optimize
revenues by reducing costs, improving efficiency, and better
at managing processes that are a bottleneck.

3. A transportation problem with the capacity of 1:1
To illustrate:
Fix-It Shop received three new
projects to repair: (1) a radio, (2)
a toaster oven, (3) broken coffee
table. They have 3 repair persons
available each with different
wager costs that is based on
their talents, abilities & skill.

4. Goal: to assign projects to people (one project to one person) with the
minimal total costs.

5. The Hungarian Method
A method of assignment that provides efficient means of finding the
optimal solution, that operates on a principle of matrix reduction.
Matrix Reduction subtract or add the variables in the cost table where the
problem is reduced to a matrix of opportunity costs.

6. Three Steps of the Assignment Method
Set up a cost table
Step 1. Find the opportunity
cost
a. Subtract the smallest
number in each row from
every number in that row
b. Subtract the smallest
number in each column
from every number in
that column
Step 2. Test the table to see
optimal assignment by drawing
the minimum possible number
of lines on column and rows
such that all zeros are covered.
Step 3. Revise opportunity cost
table:
a. Subtract the smallest
number not covered by a
line from itself and every
other uncovered number
b. Add that number at every
intersection of any two
lines.

7. Hungarian Method: Fix-it Shop

13. Making the Final Assignment
Assignment Costs
Adams to project 3 6
Brown to project 2 10
Cooper to project 1 9
Total Cost 25

14. Two types of Assignment Problem
Balanced Assignment Problem
Would require that the number of rows in the table equal the number of columns.
Unbalanced Assignment Problem
Number of people or objects does not equal the number of tasks or jobs. Either
there is more columns than row (or vice versa). If this happens, we add a dummy
row to allow us to solve the problem at equal dimensions.

15. Sample 1: Balanced Assignment Problem
KDN Trucking Services is given 4 new jobs to deliver goods from Supplier ABC to its
respective clients. KDN has 4 available units that will have different time costs for
each different job delivery, based on speed and type of unit.

20. Sample 2: Unbalanced Assignment Problem
KDN Trucking Services is given 4 new jobs to deliver goods from Supplier ABC to its
respective clients. KDN has 3 available units that will have different time costs for
each different job delivery, based on speed and type of unit.

27. Q&A
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