Expedition companies headquartered in Bintaro want to developed its business in Medan, Balikpapan and Menado and will place 3 branch heads (Aria, Yuda and Roni) from several branch offices owned by the company in Central Java to set-up offices and run operations in 3 locations. Below is the cost to allocate the 3 branch heads to each location: branch head/ branch office Medan (3 Rp. 10.000) Balikpapan (3 Rp. 10.000) Manado (3 Rp. 10.000) ARIA 800 1100 1200 YUDA 500 1300 1300 RONI 500 1000 2300 a. Create a table using the assignment method. b. Based on the results of your calculations, what advice can you give to the most optimum company leaders of location placement of each branch head above? Explain why? c. What is the total optimum cost that must be incurred by the company to allocate to all branch offices of the company?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section: Chapter Questions
Problem 100P
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Expedition companies headquartered in Bintaro want to
developed its business in Medan, Balikpapan and Menado and will place 3 branch heads (Aria, Yuda and Roni) from several branch offices owned by the company in Central Java to set-up offices and run operations in 3 locations. Below is the cost to allocate the 3 branch heads to each location:

branch head/ branch office Medan
(3 Rp. 10.000)
Balikpapan
(3 Rp. 10.000)

Manado

(3 Rp. 10.000)

ARIA 800 1100 1200
YUDA 500 1300 1300
RONI 500 1000 2300

a. Create a table using the assignment method.
b. Based on the results of your calculations, what advice can you give to the most optimum company leaders of location placement of each branch head above? Explain why?
c. What is the total optimum cost that must be incurred by the company to allocate to all branch offices of the company?

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