C

H
A
P
T
E
R

12

The Assignment Problems

Learning Objectives:

Understanding the feature of Assignment Problems.

Formulate an Assignment problem.
Hungarian Method
Unbalanced Assignment Problems
Profit Maximization Problems

Past Examinations Coverage:

Year
Q No.
Marks

M-13
-

N-12
4 (a)
8

M-12
7 (b)
4

N-11
2 (b)
6

M-11
3 (a)
10

N-10

N-10*
7 (d)
4

M-10

M-10*
3 (b)
8

N-09
4 (b)
4#

Year
Q No.
Marks

N-09*

J-09

J-09*
4 (b)
7

N-08
1 (b)
8

N-08*

M-08

N-07
4 (a)
11

M-07

N-06
2 (a)
6

M-06

Year
Q No.
Marks

N-05

M-05

N-04
6 (b)
7

M-04

N-03
2 (a)
10

M-03

N-02
2 (b)
10

M-02
2 (c)
10

N-01
2 (c)
10

M-01
2 (c)
10

Year
Q No.
Marks

N-00
2 (b)
10

M-00
2 (c)
10

N-99
3 (c)
10

M-99
2 (b)
10

N-98
2 (b)
10

M-98
2 (b)
10

N-97
3 (b)
10

M-97
2 (b)
10

N-96
6 (b)
10

M-96
3 (b)
10

* means questions from old syllabus

# means theory questions

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Page 12.1

Advance Management Accounting

The Assignment Problem:
The assignment problem, like the transportation problem, is a special case of the linear programming problem.
In general items, it is concerned with a one to one assignment. One person to one machine, one machine to one
job etc. The cost (or profit) of each person-machine, machine-job, or other assignment is known; the objective is
to minimize the total cost or to maximize the total profit of the resource.
Suppose there are 5 jobs to be performed and 5 persons are available for doing these jobs. Each persons can do
each job but with different efficiency. Now the problem is to find an assignment for allocation of jobs to the
available persons i.e. which jobs should be assigned to which person so that the total cost of performing all jobs
is minimum. thus in Assignment Problem, the objective is to assign a no. of person to the same number of
jobs in such a way that the total cost is minimum. The assignment is to be made on one to one basis i.e. each
person can associate with one and only one job.
The Assignment Algorithms (Hungarian Assignment Method)
The assignment problem can be solved by applying the following steps:
Step 1(Row Operation):
In the Cost Matrix, subtract the lowest (minimum) element of each row from every elements of the same row.
Step 2(Column Operation):
In the Cost Matrix obtained after Step 1, subtract the lowest (minimum) element of each column from every
elements of the same column. The resulting matrix is the starting matrix for the following procedure.
Step 3:
In the Cost Matrix obtained after Step 2, draw the minimum number of horizontal and vertical lines that cover all
the zeros.
(i)

If number of lines (N) = Order of the matrix (n), optimal assignment can be made and follow Step 4.

(ii)

If number of lines (N) Order of the matrix (n), then for optimal assignment, we have to follow Step
3A until we obtain the matrix with number of lines (N) = Order of the matrix (n) and then follow
Step 4

Step 3A:
Select the smallest element out of the remaining elements which do not lie on any line. Subtract this element
from all such (uncovered) elements and add it to the elements which are placed at the intersections of the
horizontal and vertical lines. Do not alter the elements through which only one line passes. Repeat this steps
until we get the number of lines (N) = Order of the matrix (n)
Step 4:
(i)

Starting with first row, examine all rows of matrix in step 3 until a row containing exactly
one zero is found. Surround this zero by () , indication of an assignment there. Draw a
vertical line through the column containing this zero. This eliminates any confusion of
making any further assignments in that column. Process all the rows in this way.

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The Assignment Problems

(ii)

Apply the same treatment to columns also. Starting with the first column, examine all
columns until a column containing exactly one zero is found. Mark around this zero and
draw a horizontal line through the row containing this marked zero.

(iii)

Repeat these steps, until one of the following situations arises:

a) No unmarked ( ) or uncovered (by a line) zero is left.
b) There may be more than one unmarked zero in one column or row. In this case, put
around one of the unmarked zero arbitrarily and pass 2 lines in the cells of the
remaining zeros in its row and column. Repeat the process until no unmarked zero is left
in the matrix.

Step 5:
After Step 4, we have a matrix which contains exactly one marked zero in each row and each column. The
assignment corresponding to these marked zeros will give the optimal assignment. After obtaining the optimal
assignment, the total actual cost can be calculated by adding the values of the corresponding cost in the assigned
cell from the optimal cost matrix.
Unbalanced Assignment Problems (No. of row No. of column)
An assignment problem is called an unbalanced assignment problem if number of sources is not equal to
number of destinations or the number of jobs is not equal to the number of persons. In such cases, dummy row
or dummy columns with zero costs are added in the matrix so as to form a square matrix.
Maximization Problems
When the objective of the assignment problem is to maximize the profits or Revenues, such types of assignment
problems is called Maximization Problems. To solve such problems, we first convert the maximization problem
to minimization problem and then apply the normal procedure of assignment algorithm.
Conversion of Maximization Problem to Minimization Problem can be done either of any following two ways:
(a) Identify the highest element in the given matrix from all the elements of the matrix and then subtract all
the elements of the matrix from the highest element. OR
(b) Put a negative sign before each of the elements in the given matrix and then subtract all the elements of
the matrix from the highest element.
Prohibited Assignment:
Prohibited Assignments are the cells where no assignment is to be made. Hence we put a very large value M or
for the prohibited cells.

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Advance Management Accounting

Theoretical Questions
Q 1:

[N 09, 4b, 4M]

In an assignment problem to assign jobs to men to minimize the time taken, suppose that one man does not
know how to do a particular job, how will you eliminate this allocation from the solution?

Practical Questions
P1:

[SM-1] *[Maximization-balanced]

An Accounts Officer has 4 subordinates and 4 tasks. The subordinates differ in efficiency. The tasks also differ in
their intrinsic difficulty. His estimates of the time each would take to perform each task is given in the matrix
below. How should the tasks be allocated one to one man, so that the total man hours are minimized?
Sub-Ordinates
I
Task
1
8
2
13
3
38
4
19
[Ans.: 1-I; 2-III; 3-II; 4-IV; Minimum Time is 42 Hr]
P2:

II

III

IV

26
28
19
26

17
4
18
24

11
26
15
10

[SM-2]

A manager has 5 jobs to be done. The following matrix shows the time taken by the j-th job (j = 1,2...5) on the i-th
machine (i = 1,2,3...5). Assign 5 jobs to the 5 machines so that the total time taken is minimized.
Manager
I
II
III
IV
V

Jobs

9
12
11
8
7

3
10
2
0
5

4
8
9
10
6

2
11
0
2
2

10
9
8
1
9

[Ans: I-2; II-3; III-4; IV-5; V-1; Minimum Time = 19]

P3:

[SM-3]

5 salesmen are to be assigned to 5 districts. Estimates of sales revenue in thousands of rupees for each sales man
are given below.
District
A
B
Sales Man
1
32
38
2
40
24
3
41
27
4
22
38
5
29
33
Find the assignment pattern that maximizes the sales revenue.

40
28
33
41
40

28
21
30
36
35

40
36
37
36
39

[Ans: 1-B; 2-A; 3-E; 4-C;5-D; Maximum Sales Revenue =R 191 Thousands]
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Page 12.4

The Assignment Problems

P4:

[SM-4] [M 99, 2b, 10M]

To stimulate interest and provide an atmosphere for intellectual discussion, a finance faculty in a management
school decides to hold special seminars on four contemporary topics leasing, portfolio management, private
mutual funds, swaps and options. Such seminars should be held once a week in the afternoons. However,
scheduling these seminars (one for each topic, and not more than one seminar per afternoon) has to be done
carefully so that the number of students unable to attend is kept to a minimum. A careful study indicates that the
number of students who cannot attend a particular seminar on a specific day is as follows:
Topics
Leasing
Portfolio
Private Mutual Swaps and
Days
Management
Funds
Option
Monday
50
40
60
20
Tuesday
40
30
40
30
Wednesday
30
20
30
20
Thursday
60
30
20
30
Friday
10
20
10
30
[Ans: Mon Swaps; Tue No Seminar; Wed- Portfolio; Thu Pvt. MF; Fri- Leasing; No. of Missing Student = 70]
P5:

[SM-5] [N 96, 6b, 10M] [RTP N 10] [RTP N 10*]

A private firm employs typists for piecemeal work on an hourly basis. There are five typists available and their
charges and speeds are different. According to an earlier understanding, only one job is given to one typist and
the typist is paid for full hours even if he works for a fraction of an hour. Find the least cost allocation for the
following data:
Typist
Rate/Hour Pages/Hour
A
R5
12
B
R6
14
C
R3
8
D
R4
10
E
R4
11
[Ans: A-T; B-R; C-Q; D-P; E-S; Total Cost R 399]
P6:

Job
P
Q
R
S
T

No. of Pages
199
175
145
298
178

[SM-6] [Nov-1990] [SA-11] [RTP N 09] [Prohibited Assignment]**

WELLDONE Company has taken the third floor of a multi- storied building for rent with a view to locate one of
their zonal offices. There are five main rooms in this floor to be assigned to five managers. Each room has its
own advantages and disadvantages. Some have windows; some are closer to the washrooms or to the canteen or
secretarial pool. The rooms are of all different sizes and shapes. Each of the five managers was asked to rank
their room preferences amongst the rooms 301, 302, 303, 304 and 305. Their preferences were recorded in a
table as indicated below:
M1
302
303
304
*
*

M2
302
304
305
301
*

Manager
M3
303
301
304
305
302

M4
302
305
304
303
*

M5
301
302
304
*
*

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Page 12.5

Advance Management Accounting

Most of the managers did not list all the five rooms since they were not satisfied with some of these rooms and
they have left off these from the list. Assuming that their preferences can be quantified by numbers, find out as
to which manager should be assigned to which room so that their total preference ranking is a minimum.
[Ans.: M1
P7:

302, M2

304, M3

303, M4

305 and M5

301 with total minimum ranking as 7]

[SM-7] [M 00, 2c, 10M] [M 97,2b, 10M] [SA-18]

XYZ airline operating 7 days a week has given the following timetable. Crews must have a minimum layover of 5
hours between flights. Obtain the pairing flights that minimize layover time away from home. For any given
pairing the crew will be based at the city that results in the smaller layover.
Hyderabad
Delhi
Delhi
Hyderabad
Flignt No Departure
Arrival
Flignt No Departure
Arrival
A1
6 A.M
8 A.M
B1
8 A.M
10 A.M
A2
8 A.M
10 A.M
B2
9 A.M
11 A.M
A3
2 P.M
4 P.M
B3
2 P.M
4 P.M
A4
8 P.M
10 P.M
B4
7 P.M
9 P.M
[Ans: A1-B3; A2-B4; A3-B1; A4-B2; Total Layover time = 40 hours]
P8:

[SM-8] [M 96, 3b, 10M] [SA-33] [N-97 (Adp)] [RTP M 11] [RTP M 09*]

An organization producing 4 different products viz. A, B, C, and D having 4 operators viz. P, Q, R and S, who are
capable of producing any of the four products, works effectively 7 hours a day. The time (in minutes) required
for each operator for producing each of the product are given in the cells of the following matrix along with
profit (Rs. Per unit). Find the optimal assignment of operators to products which will maximize the profit.
Products
A
Operators
P
6
Q
7
R
6
S
20
Profit (Rs./Unit)
3
[Ans: P-A; Q-C; R-B; S-D; Maximum Profit = 918]
P9:

10
5
7
10
2

14
3
10
10
4

12
4
10
15
1

[SM-9] [N 97, 3b, 10M] [SA-34] **

A firm produces four products. There are four operators who are capable of producing any of these four
products. The processing time varies from operator to operator. The firm records 8 hours a day and allow 30
minutes for lunch. The processing time in minutes and the profit for each of the products are given below:
Products
A
B
C
Operators
1
15
9
10
2
10
6
9
3
25
15
15
4
15
9
10
Profit (Rs./Unit)
8
6
5
Find the optimal assignment of operators to products.

D
6
6
9
10
4

[Ans: 1-D; 2-B; 3-C; 4-A; Total Profit 1140]

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The Assignment Problems

P10:

[SM-10] [M 98, 2b, 10M] [N 07 Adapt] [SA-32]**

A manufacturing company, four has zones A, B, C, D and four sales engineers P, Q, R, S respectively for
assignment. Since the zones are not equally rich in sales potential, therefore it is estimated that a particular
engineer operating in a particular zone will bring the following sales:
Zone A :

R 4,20,000

Zone B :

R 3,36,000

Zone C :

R 2,94,000

Zone D :

R 4,62,000

The engineers are having different sales ability. Working under the same conditions, their yearly sales are
proportional to 14, 9, 11 and 8 respectively. The criteria of maximum expected total sales is to be met by
assigning the best engineer to the richest zone, the next best to the second richest zone and so on.
Find the optimum assignment and the maximum sales.
[Ans: A-R; B-Q; C-S; D-P; Maximum Sales = 3,92,000]
P11:

[SA-7] Five swimmers are eligible to compete in a relay team which is to consist of four swimmers

swimming four different swimming styles; back stroke, breast stroke, free style and butterfly. The times taken
for the five swimmers A, B, C, D and E to cover a distance of 100 meters in various swimming styles are given
below in minutes: second. A swims the back stroke in 1:09, the breast stroke in 1:15 and has never competed in
the free style or butterfly. B is a free style specialist averaging 1:01 for the 100 meters but can also swim the
breast stroke in 1:16 and butterfly in 1:20. C swims all styles back stroke 1:10, butterfly 1:12, free style 1:05
and breast stroke 1:20. D swims only the butterfly 1:11 while E swims the back stroke 1:20, the breast stroke
1:16, the free style 1:06 and the butterfly 1:10.
Which swimmer should be assigned to which swimming style? Who will not be in the relay?
[Ans: Anand Breast; Bhaskar Free; Chandru Back; Dorai do not participate; Eashwar Butterfly; Min time =
276 Min.]
P12:

[SA-12]A manufacturer of complex electronic equipment has just received a sizable contract and plans

to subcontract part of the job. He has solicited bids for 6 subcontracts from 4 firms. Each jobs is sufficiently large
that any one firm can take only 1 job. The table below shows the bids and the cost estimates (in 10,000s) for
doing the jobs internally. Note that no more than 2 jobs can be performed internally.
Job
1
2
3
Firm
1
48
72
36
2
44
67
41
3
46
69
40
4
43
73
37
Internal
50
65
35
[Ans: Firm 1- 3; 2-1; 3-4; 4-5; Internal A -6; Internal B-2; Total Cost 232]

52
53
45
51
50

50
48
45
44
46

65
64
68
62
63

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Advance Management Accounting

P13:

[SA-8]Four Operators O1, O2, O3 and O4 are available to a manager who has t get four jobs J1, J2, J3 and

J4 done by assigning one job to each operator. Given the time needed by different operators for different jobs in
the matrix below:

(i)

Job
J1
J2
J3
J4
Firm
O1
12
10
10
8
O2
14
12
15
11
O3
6
10
16
4
O4
8
10
9
7
How should manager assign the jobs so that the total time for all four jobs is minimum?

(ii)

If Job J2 is not to be assigned to operator O2 what should be the assignment over how much
additional total time will be required?

[Ans:

(i) O1-J3; O2-J2; O3-J4; O4-J1 Total Time = 34

(ii) O1-J2; O2-J4; O3-J1; O4-J3 Total Time = 36]

P14:

[SA-13] A machine operator process five types of items on his machine each week, and must choose a

sequences for them. The set-up cost per change depends on the item presently n the machine and the set-up to
be made, according to the following table:
To Items
For Item
A
B
C
D
E
If he processes each type of item once

4
7
3
4
4
6
3
4
7
6
7
5
3
3
7
7
4
4
5
7
and only once each week, how should he sequence the items on his

machine in order to minimize the total set-up cost?

[Ans: A-D; B-A; C-E; D-B; E-C; Total Cost 20]
P15:

[SA-27] [Maximization]

Johnson & Johnson Ltd. has four plants each of which can manufacture any one of the four products. Production
costs and sales revenue differ from one plant to another. Given the revenue and cost data below, obtain which
product each plant should produce to maximize profit.:
Sales Revenue () Product
Production Cost () Product
Plant
1
2
3
4
1
2
3
4
A
65
78
83
85
33
40
43
45
B
85
52
59
73
45
28
31
37
C
83
56
69
78
42
29
36
41
D
49
80
85
73
27
42
44
37
Required: Obtain the optimal assigned pattern that maximizes the sales revenue.
[Ans: A-2; B-1; C-4; D-3 Maximum Profit 156 or A-2; B-4; C-1; D-3]
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The Assignment Problems

P16:

[SA-24] [Maximization Prohibited Route] [May-95]

Imagine yourself to be the Executive Director of a 5-star Hotel which has four banquet halls that can be used for
all functions including weddings. The halls were all about the same size and the facilities in each hall differed.
During a heavy marriage season, 4 parties approached you to reserve a hall for the marriage to be celebrated on
the same day. These marriage parties were told that the first choice among these 4 halls would cost Rs. 10000
for the day. They were also required to indicate the second, third and fourth preferences and the price that they
would be willing to pay. Marriage party A & D indicated that they wont be interested in Halls 3 & 4. Other
particulars are given in the following table:

( in 000)

Revenue per Hall

Marriage Party
I
II
III
IV
A
10
9
*
*
B
8
10
8
5
C
7
10
6
8
D
10
8
*
*
Where * indicates that the party does not want that hall. Decide on an allocation that will maximize the revenue
to your hotel.
[Ans.: A Hall II 9000; B Hall III 8000; C Hall IV
P17:

8000; D Hall I 10000]

[SA-26] [Maximization]

The captain of a cricket team has to allot five middle batting positions to five batsmen. The average runs scored
by each batsman at these positions are as follows:
Position
Batsman
P
Q
R
S
T

II

III

IV

40
42
50
20
58

40
30
48
19
60

35
16
40
20
59

25
25
60
18
55

50
27
50
25
53

Required:
(i)

Find the assignment of batsmen to positions, which would give the maximum number of runs.

(ii)

If another batsman U with the following average runs in batting positions as given as follows is
added to the team, should he be included to play in the team? If so, who will be replaced by him?.
Batting Positions

II

III

IV

Average runs:

45

52

38

50

49

[Ans: (i) P-V; Q-I; R-IV; S-III; T-II Total Run 232; (ii) P-V; Q-I; R-IV; S-VI; T- III; U-II Total Run 263]
P18:

[SA-22] [Maximization - Unbalanced]*

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Page 12.9

Advance Management Accounting

A chartered accountant firm has four chartered accountants each of whom can be assigned any of the three audit
assignments. Because of the varying work experience of the chartered accounts, the net surplus (professional
fess minus expenses to be incurred by the CA firm) varies as under:
CA

Audit Assignments
Y

A
65
78
B
85
52
C
83
56
D
49
80
Required: Find the maximum net surplus which can be obtained.

Z
83
59
69
85

[Ans: A-Y; B-W; C-Z; D-X; Total Profit 248 or A-Y; B-W; C-Z; D-Y]
P19:

[SA-25] [Maximization]*

Five lathes are to be allotted to give operators (one for each). The following table gives weekly output figures (in
each):
Weekly Output in Lathes
Operator
L1
L2
P
20
22
Q
19
23
R
23
28
S
21
24
T
24
28
Profit per piece is 25. Find the maximum profit per week..

L3
27
29
35
31
31

L4
32
34
39
37
36

L5
36
40
34
42
41

[Ans: P- L1; Q- L5; R- L3; S- L4; T- L2; Maximum Output 160]

P20:

[SA-28] [Maximization- Unbalanced]

A Production manager wants to assign one of the five new methods to each of four operatations. The following
table summarizes the weekly output in units:
Weekly Output
M1
M2
M3
M4
Operator
A
4
6
11
16
B
5
8
16
19
C
9
13
21
21
D
6
6
9
11
Cost per unit in 10, Selling Price per unit 35. Find the maximum profit per month.

M5
9
9
13
7

[Ans: A- M5; B- M4; C- M3; D- M2; Maximum Profit = R 5,500]

P21: [SA-30] [Maximization]***
A firm is contemplating the introduction of three products 1,2 and 3 in its plants A, B and C. Only a single
product is decided to be introduced in each of the plants. The unit cost of producing i th product in jth plants, is
given in the following matrix:
Product
1.

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Plant
B

C
Page 12.10

The Assignment Problems

1
2
3

8
10
7

12
6
6

*
4
6

Required:
(i)

How should the products be assigned so that the total unit cost is minimized?

(ii)

If the quantity of different products is as follows, then what assignment shall minimize the aggregate
production cost?
Product

(iii)

Quantity (in units)

2000

2000

10000

It is expected that the selling prices of the products produced by different plants would be different;
as shown in the following table:

Plant
Product
A
B
C
1
15
18
*
2
18
16
10
3
12
10
8
Assuming that the quantities mentioned in (ii) above would be produced and sold, how should the products be
assigned to the plants to obtain maximum profits?
[Ans: 1-B; 2-C; 3-A; Maximum Profit R 70,000 ]

P 22:

[RTP N 12] [SM-4 Adp] [M 99, 2b, 10M]

The ICAI decides to hold special seminars on four contemporary topics for its members: Ind. AS, Goods and
Service Tax (GST), Negative list in Service tax and Direct Tax Code (DTC). Such seminars should be held once in a
week in the afternoons. However, scheduling these seminars (one for each topic, and not more than one seminar
per afternoon) has to be done carefully so that the number of members unable to attend is kept to a minimum. A
careful study indicates that the number of members who cannot attend a particular seminar on a specific day is
as follows:
Topics
Ind. AS
GST
Negative List
DTC
Days
Monday
40
30
50
20
Tuesday
30
20
30
30
Wednesday
50
10
20
20
Thursday
20
30
10
30
Friday
10
20
10
30
Find an optimal schedule of the seminars. Also find out the total number of members who will be missing at least
one seminar.

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Advance Management Accounting

P 23:

[RTP M 12] [RTP M 10*]

Output of 5 operators when they worked with different 4 machines are given in the table below:
Machines
Operator
A
B
C
D
E
Use assignment technique to solve it.
P 25:

M1

M2

M3

M4

10
11
8
7
8

5
4
4
5
9

7
9
9
6
7

8
10
7
4
5

[RTP N 11] [RTP M 10]

The following table gives the past performance of five sales man in different regions in terms of their sales
achievement in rupee lakh. Find the optimum assignment

P 26:

Machines
Salesman

R1

R2

R3

R4

R5

S1
S2
S3
S4
S5

26
31
15
17
20

14
27
18
12
19

10
30
16
21
25

12
14
25
30
16

9
16
30
25
10

[RTP N 09*]

Methods engineer wants to assign four new methods to work centers. The assignment of new methods will
increase Production (in units) and they are given below. If only one method can be assigned to a work center,
determine the optimum assignment.

P 27:

Work Centre
Method

1
2
3
4

10
8
7
10

7
9
12
10

8
7
6
8

[RTP M 09]

A company is faced with the problem of assigning six different machine to 5 different jobs. The cost are
estimated as follows (hundred of rupees).
Machines

Jobs

1
2
3
4
5
6
1.

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2.5
2
3
3.5
4
6

5
5
6.5
7
7
9

1
1.5
2
2
3
5

6
7
8
9
9
10

1
3
3
4.5
6
6
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The Assignment Problems

P 28:

[RTP M 09*]

A can hire company has one car at each of 5 depots a, b, c, d and e. A customer in each of the 5 towns A, B, C, D
and E requires a car the distance (in miles) between the depots (origins) and the towns (destination) where the
customers are (is given in the following distance matrix).

Towns

Depots

A
160
130
175
190
200
B
135
120
130
160
175
C
140
110
125
170
185
D
50
50
80
80
110
E
55
35
80
80
105
How should the cars be assigned to the customer so is to minimize the distance travelled.
P 29:

[RTP N 08]

Find the assignment of salesman to district that will result in maximum sales.
Salesman

Districts

1
2
3
4
5

P 30:

32
40
41
22
29

38
24
27
38
33

40
28
33
41
40

28
21
30
36
35

40
36
37
36
39

[RTP N 08*]

A company has 5 jobs to be done. The following matrix shows the written in Rs. Of assigning of ith machine (i = 1,
2, 3, 4, 5) to the jth job (j = 1, 2, 3, 4, 5) assign the 5 jobs to the 5 machines. So as to maximize the total expected
profit.
Operator
A
B
C
D
E

Jobs

5
2
3
6
7

11
4
1
14
9

10
6
5
4
8

12
3
14
11
12

4
5
6
7
5

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Advance Management Accounting

Practical Questions Previous Examinations

PE1:

[N 12, 4a, 8M]

A production supervisor is considering how he should assign five jobs that are to be performed to five operators.
He wants to assign the jobs to the operators in such a manner that the aggregate cost to perform the job is the
least. He has the following information about the wages paid to the operators for performing these jobs:
Jobs
Operators
1
2
3
A
10
3
3
B
9
7
8
C
7
5
6
D
3
5
8
E
9
10
9
Required: Assign the job to the operators so that the aggregate cost is least.
PE 2:

4
2
2
2
2
6

5
8
7
4
4
10

[M 12, 7b 4M]

The following matrix was obtained after performing row minimum operations on rows R1 and R2 an assignment
problem for minimization. Entries xx represent some positive numbers. (It is not meant that all xx numbers
are equal). State two circumstances under which an optimal solution is obtained just after the row minimum
and column minimum operations
(Candidate may use cell references as CjRj for uniformity e.g. C1R1 represent the cell at the intersection of
Column1 (C1) and Row 1 (R1) etc.)
C1
0
xx
xx

R1
R2
R3

C2
xx
0
xx

C3
xx
xx
xx

[Ans:]
PE 3:

[N 11, 2b 6M]**

A city corporation has decided to carry out road repairs on 4 main roads in the city. The Government has agreed
to make a special grant of 50 lacs towards the cost with the condition that the repairs should be carried out at
lowest cost. Five contractors have sent their bids. Only road will be awarded to one contractor. The bids are
given below:
Roads

R1

Cost of Repairs ( in lacs)

R2
R3

R4

Contractors
C1
9
14
19
15
C2
7
17
20
19
C3
9
18
21
18
C4
10
12
18
19
C5
10
15
21
16
You are informed that C2 should get R1 and C4 should get R2 to minimize costs.
(i)

1.

What is the minimum cost allocation?

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The Assignment Problems

(ii)

How much is the minimum discount that the eliminated contractor should offer for meriting a
contract?

(iii)

Independent of (ii) above, if the corporation can negotiate to get a uniform discount rate from each
contractor, what is the minimum rate of discount so that the cost is within the grant amount?

[Ans:]
PE 4:

[M 11, 3a, 10M]***

A manager was asked to assign tasks to operators (one task per operator only) so as to minimize the time taken.
He was given the matrix showing the hours taken by the operators for the tasks.
First, he performed the row minimum operation. Secondly, he did the column minimum operation. Then, he
realized that there were 4 tasks and 5 operators. At the third step he introduced the dummy row and continued
with his fourth step of drawing lines to cover zeros. He drew 2 vertical lines (under operator III and operator IV)
and two horizontal lines (aside task T4 and dummy task T5 ) At step 5, he performed the necessary operation
with the uncovered element, since the number of lines was less than the order of the matrix . After this, his
matrix appeared as follows:
Operator
Task
T1
T2
T3
T4
T5 (Dummy)

II

III

IV

4
6
4
0
0

2
3
0
0
0

5
3
0
5
3

0
0
0
3
3

0
3
1
0
0

i.

What was the matrix after step II? Based on such matrix, ascertain (ii) and (iii)given below.

ii.

What was the most difficult task for operators I, II and V?

iii.

Who was the most efficient operators?

iv.

If you are not told anything about the managers errors, which operator would be denied any task? Why?

v.

Can the manager go ahead with his assignment to correctly arrive at the optional assignment, or should
he start afresh after introducing the dummy task at the beginning?

[Ans:]
PE 5:

[N 10*, 7d, 4M]*

Three different salesmen X, Y and Z are to be assigned three different regions A, B and C so that the companys
revenue is maximized. The following matrix gives the sales revenue:
X

10

60

30

20

30

15

60

40

10

You are required to use the assignment technique to maximize revenue.

[Ans: A-Y; B-Z ; C-X; Total Sales Revenue 135 ]
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Advance Management Accounting

PE 6:

[M 10*, 3b, 8M] [SA-37]**

A hospital has to pay nurses for 40 hours a week. One nurse is assigned to one patient. The cost per hour for
each of the nurses is given below:
Nurse\Patient W

10

10

30

30

10

20

20

30

20

Suppose that a new patient Z is admitted, and that a new nurse N is appointed. The new patient is charged
Rs. 40 per hour by each of the existing nurses. The new nurse charges Rs. 50 per hour irrespective of the patient.
i.

Find the nurse-patient combination to minimize cost to the hospital.

ii.

How much does each nurse earn per week?

iii.

What would be your revised calculations?

iv.

Comment on the new solution.

[Ans.(i) K

W, L

X, M

Y, (ii) 400, 400, 800 (iii) K

W, L

X, M

Y, N

Z &400, 400,

800,2000]
PE 7:

[J 09*, 4b, 7M] [V2 -11] [Unbalanced-Prohibited routes]*

A factory is going to modify a plant layout to install four new machines M1, M2, M3 and M4. There are 5 vacant
places J, K, L, M and N available. Because of limited space machine M2 cannot be placed at L and M3 cannot be
placed at J. The cost of locating machine to place in Rupees is shown below:
Places
J
K
L
M
N
Machine
M1
18
22
30
20
22
M2
24
18
20
18
M3
22
28
22
14
M4
28
16
24
14
16
Determine the optimal assignment schedule in such a manner that the total costs are kept at a minimum.
[Ans.: M1
PE 8:

J, M2

K, M3

N, M4

M, with total minimum ranking as 7]

[N 08, 1b, 8M] [V2 - 9] [Multiple Optimal Solutions]**

The cost matrix giving selling costs per unit of a product by salesman A, B, C and D in Regions R1, R2, R3 and R4
is given below:
A

R1

12

16

R2

20

28

32

24

R3

36

44

48

40

R4

52

60

64

56

i.
1.

Assign one salesman to one region to minimize selling cost.

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The Assignment Problems

ii.

If the selling price of the product is Rs. 200 per unit and variable cost excluding the selling cost given
in the table is Rs. 100 per unit, find the assignment that would maximize the contribution.

iii.

What other conclusion can you make from the above?

[Ans.: R1->A, R2->B, R3 ->C and R4->D with minimum selling cost as . 136; (ii) R1->A, R2->B, R3 ->C and R4->D
with maximum contribution as . 264]
PE 9:

[N 07, 4a, 10M] [V2-8] [M-98(Adapted)]**

A company has four zones open and four marketing managers available for assignment. The zones are not equal
in sales potentials. It is estimated that a typical marketing manager operating in each zone would bring in the
following Annual sales:
Zones

Rs.

East

2,40,000

West

1,92,000

North

1,44,000

South

1,20,000

The four marketing managers are also different in ability. It is estimated that working under the same
conditions, their yearly sales would be proportionately as under:
Manager M

:8

Manager N

:7

Manager O

:5

Manager P

:4

Required:
If the criterion is maximum expected total sales, find the optimum assignment and the maximum sales.
[Ans.: M East 80,000; N West 56,000; O North 30,000 P South 20,000; Total 1,86,000]
PE 10: [N 06, 2a, 6M] [V2 -6] [N-95] [SA-10] [Prohibited Routes]*
A BPO Co. is taking bids for 4 routes in the city to ply pick-up and drop cabs. Four companies have made bids as
detailed below: Bids for Routes (Rs.):
Routes
R1
R2
R3
R4
Company
C1
4000
5000
C2
4000
4000
C3
3000
2000
C4
4000
5000
Each bidder can be assigned only one route. Determine the minimum cost.
[Ans.: The minimum cost is R 15,000 C1 R1 4,000; C2 R2 4,000; C3 R3 2,000; C4 R4 5,000;]

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Advance Management Accounting

PE 11: [N 04, 6b, 7M] [V2-5] (Minimization balanced)*
A Marketing Manager has 4 subordinates and 4 tasks. The subordinates differ in efficiency. The tasks also differ
in their intrinsic difficulty. His estimates of the time each subordinate would take to perform each task is given
in the matrix below. How should the task be allocated one to one man so that the total man-hours are
minimized?
I
1
16
2
26
3
76
4
38
[Ans.: Minimum time taken = 82 hours]

II
52
56
38
52

III
34
8
38
48

IV
22
52
30
20

Important Notes

1.

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Page 12.18