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 per meter moved. An analyst has prepared the following distances and flow matrices:
What are total weekly costs for the least costly process layout?
A) $2,800
B) $3,150
C) $3,500
D) $4,000
E) $4,500

Question

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 per meter moved. An analyst has prepared the following distances and flow matrices: 
What are total weekly costs for the least costly process layout?
A) $2,800 
B) $3,150 
C) $3,500 
D) $4,000 
E) $4,500

Quizplus · Accepted Answer

The Answer of 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 per meter moved. An analyst has prepared the following distances and flow matrices: 
What are total weekly costs for the least costly process layout?
A) $2,800 
B) $3,150 
C) $3,500 
D) $4,000 
E) $4,500

A Company Needs to Locate Three Departments (X, Y, and Z)