Question

A company has fixed funds to undertake three projects through contractors. Five contractors have already applied to do the job and each has submitted a quotation for each project from which the company has estimated the saving associated with allocating a given project to a specific contractor. The figures are given in the table below and the company’s policy is to give one project per contractor

. Project

Contractor 1 2 3

A 1020 1080 1050

B 1500 1410 1050

C 1110 750 1050

D 1080 1020 1080

E 1470 1290 1590

Determine who should be assigned which project and the maximum saving the company can make.

Answer 1

to get  maximum saving, the company must give projects with minimal quotes to contractors

then:

to contractor A - project 1: 1020

to contractor B - project 3: 1050

to contractor C - project 2: 750

to contractor D - project 2: 1020

to contractor E - project 1: 1290

total: 5130

for maximal quotes:

total = $1080+1500+1110+1080+1590=6360$

maximum saving:

$6360-5130=1230$