Case study on Assignment Model

( Case Study )

1.         Distribution company ‘Sonata’ has four territories open for four Transport Companies available for assignment. The territories are not equally rich in their economic activity potentials. It is estimated that a typical transport company operating in each territory world bring in the following annual economic activity potential measured in rupees.

            The four transport companies are also considered to differ in ability.

It is estimated that, working under the same condition, their yearly turnover would be proportionately as follows :

If the criterion is the maximum expected total economic activity potential, the intuitive answer is to assign the best transport company to the potentially richest territory, the next best transport company to the second potentially richest territory and so on. Verify this answer by Assignment Method.

(Ans. : The assignment is A I, B II, C III, D IV. Total = ` 9,90,000)

2.         PQR Ltd. products 4 different products viz. pen, ink, pencil and rubber using 4 workers viz. Also, Satish, Vaze and Rathod, who are capable of producing any of the four products and they work effectively for 7 hours a day. The time (in minutes) required for producing each of the product are given in the following matrix along with the profit (` per unit ) :

Find out the assignment of workers to product which will maximise the profit.

(Ans. : Alok ® Pen, Satish ® Pencil, Vaze ® Ink, Rathod ® Rubber.

The total profit is 210 + 560 + 120 + 28 = 918 `)