The document discusses the assignment problem, which involves assigning jobs to workers in the most efficient way. It describes how workers have varying abilities for different jobs, so the costs of performing jobs differ. The assignment problem can be represented as a matrix showing the costs of each worker performing each job. The Hungarian method is described as an algorithmic approach to solving the assignment problem by finding the optimal assignment that minimizes total costs. It involves developing cost matrices and making assignments to iteratively arrive at an optimal solution.