A company makes two kinds of leather belts. Belt A is high quality belt and belt B is of lower quality.

Each belt of type A requires twice as much time as a belt of type B and if all the belts are of type B, the company could make 10,000 belts per day. The supply of leather is sufficient for only 8,000 belts per day(both A and B combined). Belt A requires a fancy buckle and only 4000 per day are available. There are only 7000 buckles a day available for belt B. What should be the daily production of each type of belt if the respective profits of belt A and B are Rs. 40 and Rs. 30.

Decision variables: Let x and y be the quantity of belt A and belt B to be produced respectively. Objective function: Maximize Z = 40x + 30y Subject to constraints: 2x+y 10000 (Total availability of time) x + y 8000 (Total availability of leather) x 4000 (Availability of buckles for belt A) y 7,000 (Availability of buckles for belt B) x, y 0 (Non-negativity constraint)

The optimum solution to this problem is x = 2000 y = 6000 which means that 2000 units of belt A 6000 units of belt B should be produced. This will give a profit of Rs. 2,60,000.

Using Hungarian Method

The Hungarian Method: The following algorithm applies the above theorem to a given n n cost matrix to find an optimal assignment. Step 1. Subtract the smallest entry in each row from all the entries of its row. Step 2. Subtract the smallest entry in each column from all the entries of its column. Step 3. Draw lines through appropriate rows and columns so that all the zero entries of the cost matrix are covered and the minimum number of such lines is used. Step 4. Test for Optimality: (i) If the minimum number of covering lines is n, an optimal assignment of zeros is possible and we are finished. (ii) If the minimum number of covering lines is less than n, an optimal assignment of zeros is not yet possible. In that case, proceed to Step 5. Step 5. Determine the smallest entry not covered by any line. Subtract this entry from each uncovered row, and then add it to each covered column. Return to Step 3.

Example 1: You work as a sales manager for a toy manufacturer, and you currently have three salespeople on the road meeting buyers. Your salespeople are in Jammu , Chandigarh and Delhi. You want them to fly to three other cities: Gujarat, Mumbai, Bhopal. The table below shows the cost of airplane tickets in rupees between these cities.
From \ To Gujarat Mumbai Jammu 250 400 Chandigarh 400 600 Delhi 200 400 Bhopal 350 350 250

Where should you send each of your salespeople in order to minimize airfare?

Example : PDD has three electric power plants that supply the electric needs of four cities. The associated supply of each plant and demand of each city is given in the table 1. The cost of sending 1 million kwh of electricity from a plant to a city depends on the distance the electricity must travel.

Step1: Select the upper left (north-west) cell of the transportation matrix and allocate the maximum possible value to X11 which is equal to min(a1,b1). Step2: If allocation made is equal to the supply available at the first source (a1 in first row), then move vertically down to the cell (2,1). If allocation made is equal to demand of the first destination (b1 in first column), then move horizontally to the cell (1,2). If a1=b1 , then allocate X11= a1 or b1 and move to cell (2,2). Step3: Continue the process until an allocation is made in the south-east corner cell of the transportation table.

D1 S1 S2 S3 Demand 19 5 70 40 5 30 30

D2 50 2 40 6 8 8 70

D3 10 60 3 20 4 7

D4

Supply 7 9 14 18 34

14

Example: we have a single server in tuck shop and customers service rate()=5 and customer arrival time()=4 per hour. Now we need to find out Ls,Lq,Wq,Ws for the tuck shop.

Service rate()=5 Arrival time()=4 Expected number of customer in system Ls=(- )=4(5-4)=4 Expected number of customer in queue Lq= (* )/ (- )=16/5=3.2

Waiting time in queue Wq= / (- )=4/5=0.80 per hour Expected time a customer spends in system Ws=1/ (- )=1(5-4)=1 hour