Step 1: Apply Northwest-Corner Allocation.
Demand:
H1 = 100, H2 = 150, H3 = 125.
Supply:
W1 = 200, W2 = 150.
\(\underline{\text{Cell (W1,H1):}}\)
Allocate = min(200,100) = 100.
Remaining: W1 = 100, H1 = 0.
\(\underline{\text{Cell (W1,H2):}}\)
Allocate = min(100,150) = 100.
Remaining: W1 = 0, H2 = 50.
\(\underline{\text{Move to W2.}}\)
\(\underline{\text{Cell (W2,H2):}}\)
Allocate = min(150,50) = 50.
Remaining: W2 = 100, H2 = 0.
\(\underline{\text{Cell (W2,H3):}}\)
Allocate = min(100,125) = 100.
Remaining: W2 = 0, H3 = 25.
Since total supply = 350 < total demand = 375, an additional dummy allocation of 25 to H3 is automatically costed as zero.
Step 2: Compute total cost. \[ C = 100(5) + 100(7) + 50(6) + 100(7) \] \[ = 500 + 700 + 300 + 700 = 2200. \]
Final Answer: \(2200\)
| Machine A | Machine B | |
|---|---|---|
| Purchase price | INR 20,000 | INR 15,000 |
| Estimated useful life | 10 years | 20 years |
| Estimated salvage value | INR 5,000 | INR 5,000 |
| Job | A | B | C | D | E |
| Processing time (in days) | 9 | 6 | 4 | 5 | 8 |
| Activity | Precedent activities |
|---|---|
| A | None |
| B | None |
| C | None |
| D | A, B |
| E | B,C |
| F | A, B |
