Business, 06.04.2020 16:17 12345678912345678967

A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:

Distances (meters)
From/To I II III
I - 10 20
II - 10
III -
Flows (loads per week)
From/To X Y Z
X - 0 80
Y 30 - 150
Z 100 130 -

1. What are total weekly costs for an optimum layout?

A. $2,600
B. $6,200
C. $3,600
D. $8,200
E. $7,200

Answers: 2

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A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a n...