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 are total weekly costs for the least costly process layout?

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 are total weekly costs for the least costly process layout?

Quizplus · Accepted Answer

By examining the flow matrix and distance matrix, we can see that the departments X and Y have the highest flow (6), and also have the shortest distance (10 and 14) between them. Thus, it makes sense to place X and Y in areas I and II, respectively. Department Z then needs to be placed in area III since it has the smallest flow (2) with the other departments.

The total distance that needs to be covered for this layout is: 
- X to Y: 10 m
- X to Z: 20 m
- Y to Z: 30 m

Total distance: 60 m

Total cost: 60 m x $0.50/load/m = $30/load

Total weekly cost (assuming one load per week per flow): 
- X to Y: 6 loads x $30 = $180 
- X to Z: 4 loads x $30 = $120 
- Y to Z: 6 loads x $30 = $180

Total weekly cost = $480

Therefore, the answer is C) $3,500 as it has the closest value to the calculated total weekly cost.

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