Resource allocation network design applying the Hungarian method in Machala markets.

Abstract

The purpose of the research is to design a resource allocation network applying the Hungarian method for the efficient management of resources in families and a reduction of their purchasing costs, in turn, improving their financial well-being. Since efficient resource management is crucial to ensure economic stability, especially in communities like Machala, where proper money management can make a significant difference, a mixed approach combining quantitative and qualitative data analysis was adopted. Data collection was carried out through surveys directed to local families, which allowed us to obtain an adequate view of their consumption patterns and financial priorities. Using a deductive methodology, a mathematical model was developed and applied based on the Hungarian method, which is an optimization technique known for its effectiveness in resource allocation problems. By implementing this allocation network, a more efficient distribution of family resources was achieved. This approach not only minimized the costs of acquiring goods, but also maximized the benefits by identifying the best combinations of expenditures.