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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

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

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

Location A 0 0 0 0

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

Location A 0 0 0 200

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

Location A 0 0 0 300

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

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

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