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 metre moved.An analyst has prepared the following distances and flow matrices: What is the distance (in metres)from area III to area I in this new facility?

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 metre moved.An analyst has prepared the following distances and flow matrices:  What is the distance (in metres)from area III to area I in this new facility?

Quizplus · Accepted Answer

Looking at the distance matrix, the distance from area III to area I is 20 metres (cell in row III and column I). To minimize interdepartmental transportation costs, departments X, Y, and Z should be located in areas I, II, and III respectively. This is because the flow matrix indicates that each department only has significant flow with the department located in the adjacent area.

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