Goa Institute of Management

PGDM-FT 2024-2025

Quantitative Analysis for

Management
Dr. Deepti Mohan
QAM - Syllabus
• Queuing Models
• Linear Programming Problem (LPP) :
• Transportation Problem (TP)
• Assignment Problem (AP)
• Introduction to AP. Concept of a balanced and unbalanced AP. Hungarian Method to obtain the optimum
solution for an AP (Minimization and Maximization cases)

• Project Management

20/11/2024 Dr. Deepti Mohan | Goa Institute of Management 2

 Assignment Problem (AP)
• The assignment problem is a special type of linear programming problem
where assignees (people/machines/vehicles/plants/time slots etc) are
being assigned to perform tasks (project/location/product etc).
• Balanced Assignment Problem is an assignment problem where the
number of assignees is equal to the number of tasks.
• Unbalanced Assignment Problem is an assignment problem where the
number of assignees is not equal to the number of tasks.
• An unbalanced assignment problem has to be first converted to a
balanced assignment problem by adding required number of dummy
assignees/tasks (rows/columns).
20-11-2024 Deepti Mohan | Goa Institute of Management
Formulating a general AP as LPP
• In balanced AP, the number of assignees and the number of tasks are the same.
(This number is denoted by n.)
• There is a cost cij associated with assignee i (i = 1, 2, . . . , n) performing task j ( j
= 1, 2, . . . , n).
• Binary variables 𝑥𝑖𝑗 : 𝑥𝑖𝑗 = 1 𝑖𝑓 𝑎𝑠𝑠𝑖𝑔𝑛𝑒𝑒 𝑖 𝑖𝑠 𝑎𝑠𝑠𝑖𝑔𝑛𝑒𝑑 𝑡𝑜 𝑡𝑎𝑠𝑘 𝑗, 0 𝑖𝑓 𝑛𝑜𝑡.

(Minimize the total cost)

(Each assignee is to be assigned to exactly one task)

(Each task is to be performed by exactly one assignee)

20-11-2024 Deepti Mohan | Goa Institute of Management

Key Idea
• Adding or subtracting the same integer to every entry in a row or
column does not impact the optimal assignment outcome.
• This is the basis of the Hungarian Algorithm for Assignment Problem.

20-11-2024 Deepti Mohan | Goa Institute of Management

Hungarian algorithm for solving an AP of size n
1. For each row of the matrix without a zero, find the smallest element and
subtract it from every element in its row.
2. Do the same (as step 1) for all columns.
3. Cover all zeros in the matrix using minimum number of horizontal and
vertical lines.
4. Test for Optimality: If the minimum number of covering lines is n, an
optimal assignment is possible. Else, i.e. if lines are lesser than n, we
haven’t found the optimal assignment, and must proceed to step 5.
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.

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
• ABC Corporation has four plants each of which can manufacture any one of the four products. Product cost
(in Rs. Per unit) differs from one plant to another as follows:

Plant Product
I II III IV
A 33 40 43 32
B 45 28 31 23
C 42 29 36 29
D 27 42 44 38

You are required to find which product each plant should produce.

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
• Here the objective is to find an assignment such that the total cost of
ABC corporation is minimized.
Plant Product
Step-1:Row reduction
I II III IV For each row of the matrix
without a zero, find the
A 33 40 43 32 smallest entry and subtract
it from every entry in its row.
B 45 28 31 23
C 42 29 36 29
D 27 42 44 38

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Step-2:Column reduction
Do the same for each column
I II III IV without a zero.
i.e. find the smallest entry
A 1 8 11 0 and subtract it from every
B 22 5 8 0 entry in the column.

C 13 0 7 0
D 0 15 17 11

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Step-3
Find the minimum number of lines
I II III IV (horizontal or vertical lines) needed
to cover all zeros in the matrix.
A 1 8 4 0
B 22 5 1 0
C 13 0 0 0
D 0 15 10 11

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Step-4
Test for Optimality: If the minimum
I II III IV number of covering lines is n, an
optimal assignment is possible.
A 1 8 4 0 Else, i.e. if the lines are lesser than
n, we haven’t found the optimal
B 22 5 1 0
assignment, and must proceed to
C 13 0 0 0 step 5.
D 0 15 10 11

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Step-5
Determine the minimum uncovered
I II III IV entry (the smallest number in the
A 1 8-1
8 4-1
4 0 matrix not covered by any line).
Subtract this number from each
B 22 5-1
5 1-1
1 0 uncovered entry and add this
number to the entries at the
C 13+1
13 0 0 0+1
0 intersection points of the lines
D 0 15-1
15 10-1
10 11 drawn. Go to step 3.

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Step-5
Plant
Plant Product
Product Determine the minimum uncovered
entry (the smallest number in the
II IIII IIIIII IV
IV matrix not covered by any line).
AA 11 87 43 00 Subtract this number from each
uncovered entry and add this
BB 22
22 54 10 00 number to the entries at the
CC 13 00 00 01 intersection points of the lines
14
drawn. Go to step 3.
DD 00 15
14 109 11
11
Step-3
Step-4 Find the minimum number of lines
Test for Optimality: If the minimum number of covering lines is (horizontal or vertical lines) needed
n, an optimal assignment is possible. Else, i.e. if the lines are to cover all zeros in the matrix. Go to
lesser than n, we haven’t found the optimal assignment, and step 4.
must proceed to step 5.

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Step-4
Test for Optimality: If the
I II III IV minimum number of covering
lines is n, an optimal assignment
A 1 7 3 0 is possible.
B 22 4 0 0 Determine the optimal optimal
assignment.
C 14 0 0 1
D 0 14 9 11

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization : Example-1
Plant Product Optimal Solution:
I II III IV
A – IV Rs. 32
A 33 40 43 32 B – III Rs. 31
B 45 28 31 23 C – II Rs. 29
C 42 29 36 29 D – I Rs. 27
D 27 42 44 38
Total cost = 119

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 2
• A transport agency has three vehicles in three cities. Each of the vehicles can be assigned to any of the four
other cities. The distance (in kms) differs from one city to another as below:

City where City where vehicle is required

vehicle is I II III IV
available
A 33 40 43 32
B 45 28 31 23
C 42 29 36 29

You are required to assign a vehicle to a city in such a way that the total distance travelled
is minimum.

20-11-2024 Deepti Mohan | Goa Institute of Management

• This is an unbalanced assignment problem.

City where City where vehicle is required

vehicle is I II III IV
available
A 33 40 43 32
B 45 28 31 23
C 42 29 36 29

20-11-2024 Deepti Mohan | Goa Institute of Management

• This is an unbalanced assignment problem : add a dummy row

City where City where vehicle is required

vehicle is I II III IV
available
A 33 40 43 32
B 45 28 31 23 Now n=4
C 42 29 36 29
D 0 0 0 0

20-11-2024 Deepti Mohan | Goa Institute of Management

• Optimal allocation: A-I, B-IV, C-II
• Total distance travelled = 33 + 23 + 29 = 85 km

City where City where vehicle is required

vehicle is I II III IV
available
A 33 40 43 32
B 45 28 31 23
C 42 29 36 29

20-11-2024 Deepti Mohan | Goa Institute of Management

 Minimization – Example 3
Five swimmers are eligible to compete in a relay team
which consist of four swimmers swimming four
different swimming styles; back stroke, breast stroke, Swimming Styles
free style and butterfly. The time (in minutes:seconds)
taken by five swimmers – Anand, Bhaskar, Chetan, Swimme Back Breast Free butterfly
Dhaval and Easwar to cover a distance of 100 meters rs stroke stroke style
in various swimming styles is given below: Anand
swims the back stroke in 1:09, breast stroke in 1:15 Anand
and has never competed in free style and butterfly.
Bhaskar is a free style specialist averaging 1:01 for 100 Bhaskar
meters but can also swim breast stroke in 1:16 and
butterfly in 1:12. Chetan swims all styles – back stroke Chetan
1:10, butterfly 1:12, free style 1:05 and breast stroke
1:20. Dhaval swims only butterfly 1:11 while Easwar Dhaval
swims back stroke 1:20, breast stroke 1:16, free style
1:06 and butterfly 1:10. Which swimmer should be Easwar
assigned to which swimming style? Who would not be
in the relay?

20-11-2024 Deepti Mohan | Goa Institute of Management

 Minimization – Example 3
Five swimmers are eligible to compete in a relay team
which consist of four swimmers swimming four Swimming Styles
different swimming styles; back stroke, breast stroke,
free style and butterfly. The time (in minutes:seconds) Swimmers Back Breast Free butterfly Dummy
taken by five swimmers – Anand, Bhaskar, Chetan, stroke stroke style
Dhaval and Easwar to cover a distance of 100 meters in
various swimming styles is given below: Anand swims
the back stroke in 1:09, breast stroke in 1:15 and has
never competed in free style and butterfly. Bhaskar is a Anand 69 75 x x 0
free style specialist averaging 1:01 for 100 meters but
can also swim breast stroke in 1:16 and butterfly in Bhaskar x 76 61 72 0
1:12. Chetan swims all styles – back stroke 1:10,
butterfly 1:12, free style 1:05 and breast stroke 1:20.
Dhaval swims only butterfly 1:11 while Easwar swims Chetan 70 80 65 72 0
back stroke 1:20, breast stroke 1:16, free style 1:06 and
butterfly 1:10. Which swimmer should be assigned to Dhaval x x x 71 0
which swimming style? Who would not be in the relay?
Easwar 80 76 66 70 0

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 3
Swimming Styles
Optimal assignment
Swimmers Back stroke Breast Free style butterfly Anand – Breast stroke – 75s
stroke Bhaskar – Free style – 61s
Chetan – Back stroke – 70s
Anand 69 75 x x
Dhaval – not in relay -
Bhaskar x 76 61 72 Easwar – Butterfly – 70s

Chetan 70 80 65 72 Total expected relay completion

time = 276s
Dhaval x x x 71

Easwar 80 76 66 70

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 4
• Four operators are available to a manager who has to get four jobs done by assigning one job to each operator.
Given the time needed by different operators for different jobs (matrix below) – time in days,

Operator Jobs
J1 J2 J3 J4
O1 12 10 10 8
O2 14 12 15 11
O3 6 10 16 4
O4 8 10 9 7
i) How should the manager assign the jobs so that the total time needed for all four jobs is minimum?
ii) If job J2 is not to be assigned to operator O2, then what would be the optimum assignment in this
case and how much additional total time would be required for the same?

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 4 – part i
Operator Jobs
i) How should the manager
J1 J2 J3 J4 assign the jobs so that the
O1 3 1 0 0 total time needed for all
O2 2 0 2 0 four jobs is minimum?
O3 1 5 10 0
O4 0 2 0 0 Optimal assignment:
O1-J3 10 days
Operator Jobs O2-J2 12 days
O3-J4 4 days
J1 J2 J3 J4 O4-J1 8 days
O1 12 10 10 8 34 days
O2 14 12 15 11
O3 6 10 16 4
O4 8 10 9 7

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 4 – part ii

Operator Jobs
J1 J2 J3 J4
O1 3 0 0 0
O2 2 x 2 0
O3 1 4 10 0
O4 0 1 0 0

20-11-2024 Deepti Mohan | Goa Institute of Management

Minimization – Example 4 – part ii
If job J2 is not to be assigned
to operator O2, then what
Operator Jobs would be the optimum
J1 J2 J3 J4 assignment in this case and
O1 12 10 10 8 how much additional total
O2 14 12 15 11 time would be required for
the same?
O3 6 10 16 4
O4 8 10 9 7
Optimal assignment:
O1-J2 10 days
O2-J4 11 days
O3-J1 6 days
O4-J3 9 days
36 days

Additional time = 36-34= 2days

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D D D3 D4 D5
1 2
S1 40 46 48 36 48
S2 48 32 36 29 44
S3 49 35 41 38 45
S4 30 46 49 44 44
S5 37 41 48 43 47

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5
Reduce to a minimization
S1 -40 -46 -48 -36 -48
problem first
S2 -48 -32 -36 -29 -44

S3 -49 -35 -41 -38 -45

S4 -30 -46 -49 -44 -44

S5 -37 -41 -48 -43 -47

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5
S1 48-40 48-46 48-48 48-36 48-48 Convert entries
to non-negative
S2 48-48 48-32 48-36 48-29 48-44 values
This takes care of
row reduction as
S3 49-49 49-35 49-41 49-38 49-45
well.

S4 49-30 49-46 49-49 49-44 49-44

S5 48-37 48-41 48-48 48-43 48-47

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5
S1 8 2 0 12 0 Do column reduction
wherever needed
S2 0 16 12 19 4

S3 0 14 8 11 4

S4 19 3 0 5 5

S5 11 7 0 5 1

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5
S1 8 0 0 7 0 Minimum no of lines
that cover all zeros?
S2 0 14 12 14 4
Minimum no of lines
that cover all zeros
S3 0 12 8 6 4 =4 < order of the
matrix
S4 19 1 0 0 5
Create more zeros
S5 11 5 0 0 1

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in
Rs’000 for each salesman in different districts are given in the following table. In your opinion, what should
be the placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5
S1 12 0 0 7 0 Minimum no of lines
that cover all zeros
S2 0 10 8 10 0 =4 = order of the
matrix
S3 0 8 4 2 0
Multiple solutions
possible
S4 23 1 0 0 5

S5 15 5 0 0 1

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in Rs’000
for each salesman in different districts are given in the following table. In your opinion, what should be the
placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5

S1 40 46 48 36 48 Optimal assignment
S1-D2 Rs. 46000
S2 48 32 36 29 44 S2-D1 Rs. 48000
S3-D5 Rs. 45000
S3 49 35 41 38 45 S4-D4 Rs. 44000
S5-D3 Rs. 48000
S4 30 46 49 44 44 Maximum expected sales
revenue = Rs. 2,31,000
S5 37 41 48 43 47

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -1
• A company plans to assign 5 of its salesmen to 5 districts in which it operates. Estimates of sales revenue in Rs’000
for each salesman in different districts are given in the following table. In your opinion, what should be the
placement of the salesmen if the objective is to maximize the expected sales revenue?

D1 D2 D3 D4 D5

S1 40 46 48 36 48 Four solutions are possible

Alternate solution:
S2 48 32 36 29 44 Optimal assignment
S1-D2 Rs. 46000
S3 49 35 41 38 45 S2-D5 Rs. 44000
S3-D1 Rs. 49000
S4 30 46 49 44 44 S4-D3 Rs. 49000
S5-D4 Rs. 43000
S5 37 41 48 43 47 Maximum expected sales
revenue = Rs. 2,31,000

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• 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 accountants, the net surplus
(professional fees minus expenses to be incurred by the CA firm) varies as under:
CA’s Audit Assignments
I II III
A 65 78 83
B 85 52 59
C 83 56 69
D 49 80 85

Find the maximum net surplus which can be obtained for the above case.

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• Unbalanced – add dummy column (dummy audit assignment)

CA’s Audit Assignments

I II III Dummy
A 65 78 83 0
B 85 52 59 0
C 83 56 69 0
D 49 80 85 0

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• Maximization to Minimization

CA’s Audit Assignments

I II III Dummy
A -65 -78 -83 0
B -85 -52 -59 0
C -83 -56 -69 0
D -49 -80 -85 0

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• Maximization to Minimization

CA’s Audit Assignments

I II III Dummy
A 18 5 0 83
B 0 33 26 85
C 0 27 14 83
D 36 5 0 85

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• Colum reduction

CA’s Audit Assignments

I II III Dummy
A 18 0 0 0
B 0 28 26 2
C 0 22 14 0
D 36 0 0 2

20-11-2024 Deepti Mohan | Goa Institute of Management

Maximization: Example -2
• Minimum no of lines to cover all zeros=4=order of the matrix
• Optimal assignment is possible

CA’s Audit Assignments

I II III Dummy
A 18 0 0 0
B 0 28 26 2
C 0 22 14 0
D 36 0 0 2

20-11-2024 Deepti Mohan | Goa Institute of Management

 CA’s Audit Assignments

Maximization: Example -2 A
I
65
II
78
III
83
B 85 52 59
C 83 56 69
D 49 80 85
CA’s Audit Assignments
85 + 80 + 83 = 248
I II III Dummy
A 18 0 0 0 CA’s Audit Assignments
B 0 28 26 2 I II III
C 0 22 14 0 A 65 78 83
B 85 52 59
D 36 0 0 2 C 83 56 69
D 49 80 85

85 + 78 + 85 = 248

20-11-2024 Deepti Mohan | Goa Institute of Management

Example-3 Flight pairing
• An airline that operates 7 Days a week has the time table shown below. Crew must have a minimum layover
of 5 hours between flights. Obtain the pairing of flights that minimizes layover time away from home
assuming that the crew can be based at either of the two cities. The crew will be based at the city that results
in smaller layover.
Goa -Mumbai Mumbai - Goa

Flight no. Depart Arrive Flight no. Depart Arrive

What needs to be
1 7:00 AM 8:00AM 101 8.00AM 9.15AM assigned to what?

2 8:00 AM 9:00AM 102 8.30AM 9.45AM What is the objective?

3 1:30 PM 2:30PM 103 12Noon 1.15PM How do you form the

matrix?
4 6:30 PM 7:30PM 104 5.30PM 6.45PM

20-11-2024 Deepti Mohan | Goa Institute of Management

 Flight pairing
• An airline that operates 7
Days a week has the time 101 102 103 104
table shown below. Crew
must have a minimum 1 21.75 21.25 17.75 9.5
layover of 5 hours
between flights. Obtain 2 22.75 22.25 18.75 8.5
the pairing of flights that
minimizes layover time
away from home 3 17.5 18 21.5 18.75
assuming that the crew
can be based at either of 4 9.25 8.75 5.25 22
the two cities. The crew
will be based at the city
that results in smaller
layover.

20-11-2024 Deepti Mohan | Goa Institute of Management

 Flight pairing
• An airline that operates 7
Days a week has the time 101 102 103 104
table shown below. Crew
must have a minimum 1 21.75 21.25 17.75 9.5
layover of 5 hours
between flights. Obtain 2 22.75 22.25 18.75 8.5
the pairing of flights that
minimizes layover time
away from home 3 17.5 18 21.5 18.75
assuming that the crew
can be based at either of 4 9.25 8.75 5.25 22
the two cities. The crew
will be based at the city
that results in smaller
layover.
Minimum layover
time: 52.50

20-11-2024 Deepti Mohan | Goa Institute of Management

20-11-2024 Deepti Mohan | Goa Institute of Management