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CMA Final · Strategic Cost Management · Assignment

Arjun Fabricators must assign three jobs (A, B, C) to three machines (M1, M2, M3), one job per machine. Processing costs in Rs thousand are: A: 9, 11, 14; B: 6, 15, 13; C: 12, 13, 6 (for M1, M2, M3 respectively). What is the minimum total cost?

The minimum total cost is Rs 23 thousand, obtained by assigning job A to M2, job B to M1 and job C to M3. Every other one-to-one assignment costs more, for example the diagonal pairing costs Rs 30 thousand.

  1. ARs 23 thousandCorrect
  2. BRs 30 thousand
  3. CRs 26 thousand
  4. DRs 33 thousand

Explanation

Check all six assignments: 30, 35, 23, 36, 33, 41. The least is A-M2, B-M1, C-M3 = 11+6+6 = 23. Rs 30 comes from the diagonal assignment A-M1, B-M2, C-M3, which is not the cheapest.

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