Question

In problem 2, suppose that the sales forecasts have been revised downward, so that each plant has the capacity to produce all that is required of any one product. Therefore, management has decided that each new product should be assigned to only one plant and that no plant should be assigned more than one product (so that four plants are each to be assigned one product, and one plant is to be assigned none). Use the Hungarian method to determine which plant should produce which product. Hungarian method must be used.

(problem 2-A corporation has decided to produce four new products. Five branch plants now have excess production capacity. The unit manufacturing cost of the first product would be $28, $24, $30, and $27 in plants A, B, C, and E, respectively, whereas, plant D does not have the capability for producing this product. The unit manufacturing cost of the second product would be $29, $33, $28, $32, and $31 in plants A, B, C, D, and E, respectively. The unit manufacturing cost of the third product would be $39, $32, $28, and $31 in plants A, B, D, and E, respectively, whereas, plant C does not have the capability for producing this product. The unit manufacturing cost of the fourth product would be $30, $26, $25, $32, and $31 in plants A, B, C, D, and E, respectively. Sales forecasts indicate that 500, 300, 200, and 400 units of products 1, 2, 3, and 4, respectively, should be produced per day. Plant A, B, C, D, and E have the capacity to produce 300, 400, 200, 500, and 300 units daily, respectively, regardless of the product or combination of products involved. Management wishes to know how they should allocate the new products to plants in order to minimize total manufacturing cost.)

Answer 1